Catch 22

[Scubaroo]

Here's my latest hair-puller in dealing with US corporations.

Trying to rent an apartment after being a roommate for 18 months. To do this I need a credit report. No problem, I thought, I've been here 18 months, no late bills or anything, have a social security number, etc.

Turns out my credit history is a little too "perfect" - it doesn't exist. Credit reporting bureaus have never heard of me. Reason - I don't have a credit card. Now the reason I don't have a credit card is because whenever I've enquired of one at the bank, I'm told I won't get one because I'm new to the country and don't have a credit history! So without the credit card, no credit history, and without the credit history, no credit card. Hmmm.

So off I go to my bank to apply for a credit card (again). They tell me I'm new to the country. Well I've been here 18 months I tell them. So they tell me I'm probably leaving the country soon then. I tell them I'm not. So then they told me to go to Macy's and open a charge account so I would have a credit history, then they would open a credit card account for me.

Macy's.

Right.

So I went direct to a credit card company instead. Oh wait, you don't have a credit history sir, we can't help you...

 

[o2 clean]

Since you need help, I'll be more than happy to switch names with you and you can use my "wonderful" credit history. I don't mind having a "non-traceable" credit history!

 

[WreckWriter]

I remember having to do it when I was young.

Here's how: Go to department stores first, apply for all of them. Do gas stations next, same thing.

Once you have a couple cardcs of any sort, then things start building correctly.

BE CAREFUL. Don't abuse them but do use them. A credit card never used doesn't really exist. A couple bucks on each one, pay off every month.

Tom

 

[Scubaroo]

I guess part of the reason I have this problem is that I still have an Australian credit card I've used for 6 years + without problems. So when I was turned down in the US, I continued to use my Australian card and rack up the frequent flyer points for "overseas spend" (averaged 4 points per USD rather than the 1 point locally!). I've earnt enough points for a return flight to Australia this way. Trouble is, my Australian card is worthless in the eyes of the US credit bureaus and banks in terms of establishing a credit history.

I guess I'll have to go to Macy's after all.

 

[ckharlan66]

Try going to a bank and tell them you want a secured credit card. This way you make a deposit to the card company of a given amount and that will set your limit. You use it like a regular card but they have the deposit to secure your spending. This is how a lot of folks have to start if they don't have a cosigner.

Good luck.

Chad

 

[dc4bs]

ckharlan66 once bubbled...
Try going to a bank and tell them you want a secured credit card. This way you make a deposit to the card company of a given amount and that will set your limit. You use it like a regular card but they have the deposit to secure your spending. This is how a lot of folks have to start if they don't have a cosigner.

Good luck.

Chad

Yep,

This can work, but SHOP AROUND. Be careful and read all the fine print before opening one of these accounts.

Some have very high anual fees (up to hundreds of dolars) in addition to tying up a chunk of your money in the security deposit. They also tend to have very high interest rates becuse many people who get them have no other way to get a credit card (captive audience).

Bank check cards can substitute for most credit card purchases but cannot be used for things like renting cars, etc. or where any kind of security deposit is required. And of course, the check card useage doesn't help with credit ratings which is the point of this exercise.

 

[ckharlan66]

Always check the terms on cards. There are good and bad deals out there and if you don't read the terms you won't know the difference.

Good luck.

Chad

 

[caymaniac]

Sounds like you have a Major major problem. How about joining a credit union, they often offer credit cards to their members?
Caymaniac

 

[AzAtty]

There are plenty of credit card issuers that will give you a credit card even if you have no credit or very bad credit. Of course, the interest rates are absurd (19.8% and up), but if you're just looking to establish a credit history instead of actually using the card, it's an option.

I've represented debtors in bankruptcy who file a bankruptcy petition and then three months later have a host of new credit cards even though bankruptcy instantly converts you into persona non grata in the eyes of most lenders. Two card issuers I frequently see are CapitalOne MasterCard and Household Bank. You might give them a shot.

You might want to see whether you can "import" your credit history from Australia into the U.S. The major credit reporting companies in the U.S. are Experian, TransUnion and Equifax. I'd suggest calling them to see if that's possible.

Another thing I'd suggest is to sit down with a banker and see what they can do for you. Sometimes bank employees with managerial responsibilities can make credit determinations. One of the simplest forms of credit you can get from your bank is a checking account overdraft protection line of credit. If you've been with your current bank for a while and haven't been bouncing checks, they may extend you a small overdraft protection line. It gets reported to the credit reporting agencies just like any other credit line. I know some management-type people at a couple of the major banks. PM me if you'd like me to send you contact information.

I would not recommend submitting credit card applications willy-nilly. There is some disagreement about whether mulitiple credit inquiries within a brief period of time harms your credit score, but the conventional wisdom I've seen from the "experts" is not to apply for too many credit accounts at once.

Finally, there is always the option of putting down a large rental deposit. That sort of thing makes creditors feel all warm and fuzzy inside. And ask that they report your payment history to the credit agencies.

Good luck in your efforts.

 

[Lawman]

go to a bank and open a checking or
savings account. Then they take out
a small personal loan secured by the
account. Then they pay it back. They
now have a credit history, and a good
one.