"Thin" credit ... need help quickly rebuilding & establishing credit - living in Puerto Rico

[dkurlygurl]

Hello all,

I have just signed up on here after viewing the forum for about a week now, very informative and overwhelming information (some contradictory).

I lived for about 7years in Europe and have just moved to Puerto Rico (been here just shy of a month now).  I came here to start up a business and have quite a bit of savings in the bank.

Before I moved to Europe I had a pretty messed up credit history, I was younger and didn't see it as important so just let it go for years, then eventually moved to Euroope.  Now I am older, wiser and I am back so it is important I get my credit tied up and into good scores (particularly for my business).

Credit in Europe works VERY different to the mainland and Puerto Rico.  So, whereas I had a 10,000 CHF credit limit there, here I can't even get approved for a secured loan.

I tried pulling my credit scores and credit reports to no avail.  Apparently I have a "thin" report so there is not enough info on it to verify me.  In the end I was able to request a credit report with annualcreditreport.com but it will be sent in the mail and this will take several weeks according to what they told me.  In the meantime, I do not want to wait.

So far, I have tried applying for about a handful of credit cards, online (between thursday-yesterday), over the phone and online.  All nothing...I even tried with my local bank (Banco Popular) and was also denied.  The main reason I got denied here is because I have no income.  So although I have a pretty nice bank account savings with them, they cannot help me in getting a SECURED credit card or loan - SUCKS!

Other online providers of Secured Cards I was not able to apply to because they did not have Puerto Rico as an option/territory they provide services/coverage.  

Wells Fargo may be my only chance of a secured credit card. They opened up a Checking & Savings account for me over the phone (there are no branches here in Puerto Rico and now i have to deposit the money I would like to use to secure the credit card.  On Monday I have to go in person to Banco Popular to arrange the wire transfer as they do not have this option with online banking  (i have no car so not happy about that & there is no reliable public transportation in PR).

Still, this is no guarrantee that I will get the secured card.  After I make the transfer and it is reflected in my Wells Fargo account I have to call back so that then I can apply for the secured credit card (because the $$$ must already be in the bank at the time of application).  so there is a chance I will be denied here too.

I have also applied for a Fingerhut card and YAY... was approved for a $200 limit.  Now what?  It's been years so do not remember what is the procedure with this to get it to help build my credit score and history (how much balance must i keep, should i pay in full, how often should i use the card, how long till my credit improves because of Fingerhut and how much etc. etc. etc.).

So if I get denied for the Wells Fargo Secured Card... what is the next step?  I am not working as I am here to open up a business (not yet open).  HOw do I build/repair my credit if I don't get a chance or break?  I can't do it with only a Fingerhut card  

I would really appreciate if you guys would give me a good plan of attack to get my credit back on course. 

Many thanks,

[Booboo71]

Did you try capital one secured? Also why not get a small loan for 1000 if you can through the bank and take the money and make your payments with it. Don't spend the money just use it for your payments to start building credit.

[myjourney]

Welcome to the forum 

There are banks that will give you 

a) a secured loan or card with a good deposit Wells Fargo being one and there are other as well but right now I can't remember who they are.....sorry 

Chase maybe the other IIRC

b) I'll also have your post moved to the CC forum where you'll get the answers you seek as most of the cases that have had success frequent there.

Good luck and again welcome 

[dkurlygurl]

@Booboo - yes I tried them, they do not have PUerto Rico as an option  

[dkurlygurl]

@myjourney - I am trying Wells Fargo Secured Card now, that was the only possible option out of all their services.  See my description on this... will see on Monday what happens.

For the secured loan with my bank, also mentioned this in my post.  I was denied.  See above  

Thanks for moving... yes, i would like to get more replies.  EAger to get some good feedback and tips and thanks for welcoming me to the board  

[Booboo71]

Maybe be an authorized user on someone's account?

[cobbson]

Suggestion if you reach a dead end on a secured or unsecured credit card. You said, and to quote your exact words, "have quite a bit of savings in the bank". "Quite a bit" could mean $10,000 or $250,000. You know, but nobody else does. Wellsfargo has what they call a "CD/Savings Secured Loan". I believe the minimum loan of this type is $3,000. In a nutshell, you  purchase a Certificate of Depost for a minimum of $3,000. You can borrow fully against that CD as collateral and repay it monthly over one year. You walk out of the bank with the $3,000 cash and they are holding the collateralized C/D until the loan is fully repaid. Your cost is the spread between the interest rate on the C/D which is next to nothing and the rate they charge for the loan. I believe if it is repaid monthly they will report it to the CRAs. Ask your banker about the frequency of reporting on what is, in fact, an installment loan and not a revolver like a credit card. At least you will have something positive on your credit report after several months passing which could lead to some sort of credit card from Wellsfargo or another bank. Discuss this with your banker.

Good luck on all your endeavors,

Cobbson

[ElGringo]

Gonna bump this one, but I figured it might help someone in the same predicament who decides to go a google search.

As someone that was in your predicament until last year, I've learned that the easiest way to establish credit in PR is through a car loan - usually with Reliable Financial.  You'll get dinged on interest, but that was how I re-established my credit in PR 7 months ago, and I just refinanced it with a CU with much lower rate.  One downside, it took Reliable close to 3 months to start reporting, and the payments are being reported 2-3 months late.

If a card is your primary goal, you may want to check out one of the local cooperativas (like a CU), and ask for their secured products.  I've not heard of anyone that's been denied through them.

Anyway, since re-establishing my credit, I've been approved for a Banco Santander Jetblue MC, Banco Popular Novel Dual Visa/Amex, Amex Green, and a Discover It Card.

[credit-hunter]

Your local bank (Banco Popular) they do have a secured card and its very easy to qualify for to.