Moving to the USA - Credit History Questions

PitRejection2359

Hi All,

I'm moving to the Texas in the summer for 3 years with work, which is awesome, but has some issues attached with it.

Looking around the internet and chatting to some people, I have gleaned that my fairly good UK credit history wont count for anything over there, so essentially I have to start from scratch.

However, I have heard that if I open an American Express credit card in the UK before I go, then that might help to earn good credit history over there before I arrive.

So my main question is: is this true, and are there any particular credit card companies i should / shouldn't use?

I was thinking of opening a Virgin AE card as I can earn air miles with that, which might help to pay for trips back home to the UK. But then using a UK based card in the USA is likely to be more expensive than just opening an American card when I get there, I guess, so will the "free" air miles as I spend in the USA be worth while?!

I have also looked at the Amex Platinum card as recommended on the main site for good cashback, but I'm not sure which is going to be best in terms of rewards. In the UK we probably spend about £20-25k annually on credit cards (we buy everything on it!) that we pay off in full every month: the main thing I want is to get credit history that is useful in the USA; anything else is a bonus!

The other question I have is: is it worth opening a USD current account with a UK provider before i go, such as Lloyds or HSBC? Will this help me at all in the long run, and will i be able to access them in Texas, or shall i just wait till i get there?

Any help and advice greatly appreciated!

theredbaron

If you are an Amex customer in the UK and have been with them for 12 months or more, once you have a USA address they can do a 'global transfer' which means that without a USA credit history Amex in the US will issue a card. I did this when I moved out to the states 2 years ago. it is tough at first as they do not take account of your UK credit history.

I opened a USA bank account when I got here and use my new Amex card for all purchases, I have got to say that membership points are quicker to mount up than in the UK. Esp if you get the gold rewards card. They are offering it without an annual fee for the first year.

jpwjpw

A good resource you should check out is: http://www.flyertalk.com/forum/miles-points-1/

Loads of info on credit cards and maximising your points for travel.

I'm afraid I don't really know if Amex share credit info internally over international borders. I know that my postal statements used to come from Florida at one point. The Virgin AMEX is issued by MBNA, so I reckon there is very little chance that one would help a US credit rating.

PitRejection2359

theredbaron wrote: »

If you are an Amex customer in the UK and have been with them for 12 months or more, once you have a USA address they can do a 'global transfer' which means that without a USA credit history Amex in the US will issue a card. I did this when I moved out to the states 2 years ago. it is tough at first as they do not take account of your UK credit history.

I opened a USA bank account when I got here and use my new Amex card for all purchases, I have got to say that membership points are quicker to mount up than in the UK. Esp if you get the gold rewards card. They are offering it without an annual fee for the first year.

Thanks for the info theredbaron. as its only under 6 months till I get out there, then I'm not going to be able to get the full credit history for a while, but at least I'll get something sooner if i start now!

I'll look into the Amex Gold when I get out there then!

jpwjpw wrote: »

A good resource you should check out is: http://www.flyertalk.com/forum/miles-points-1/[/url

Thanks - I'll check that out.

jpwjpw wrote: »

The Virgin AMEX is issued by MBNA, so I reckon there is very little chance that one would help a US credit rating.

Very good point - I hadn't thought about that. I'd probably be best off going direct with Amex then, if I'm to stand any chance of transferring the history!

gt94sss2

cocksy_boy wrote: »

So my main question is: is this true, and are there any particular credit card companies i should / shouldn't use?

The other question I have is: is it worth opening a USD current account with a UK provider before i go, such as Lloyds or HSBC? Will this help me at all in the long run, and will i be able to access them in Texas, or shall i just wait till i get there?

If you have/open a HSBC account in the UK, they will arrange for one to be opened with HSBC USA for you - based on your UK credit record - before you go to the USA. This can include a credit card as well as a current account.

They also allow you to do free/cheap(depends on the type of account) instant transfers between your HSBC accounts in different countries online.

If you wanted to use a UK debit/credit card, there are a few good ones to use for good exchange rates, just search the forum as its a FAQ.

Regards
Sunil

PitRejection2359

gt94sss2 wrote: »

If you have/open a HSBC account in the UK, they will arrange for one to be opened with HSBC USA for you - based on your UK credit record - before you go to the USA. This can include a credit card as well as a current account.

They also allow you to do free/cheap(depends on the type of account) instant transfers between your HSBC accounts in different countries online.

If you wanted to use a UK debit/credit card, there are a few good ones to use for good exchange rates, just search the forum as its a FAQ.

Regards
Sunil

Hi Sunil - my wife has an HSBC account so we're going to go and talk to them today to see what they can do!

gt94sss2

cocksy_boy wrote: »

Hi Sunil - my wife has an HSBC account so we're going to go and talk to them today to see what they can do!

If it helps, it used to be the case (and I imagine it still is) that you could get HSBC Premier for free for 6 months when opening an account - without needing to meet the qualification criteria.

As such, you could get a HSBC Premier account, open an account with HSBC USA via that, and then downgrade the accounts if they are not suitable for you..

Regards
Sunil

PitRejection2359

gt94sss2 wrote: »

If it helps, it used to be the case (and I imagine it still is) that you could get HSBC Premier for free for 6 months when opening an account - without needing to meet the qualification criteria.

As such, you could get a HSBC Premier account, open an account with HSBC USA via that, and then downgrade the accounts if they are not suitable for you..

Regards
Sunil

Thanks Sunil - the bank were helpful but didn't know all the details, so the international side of it are going to give us a shout next week. I'll let you know how it goes!

ybbon66

I moved to the US in 1994 (so I know a long time ago - hell I've been back longer than I lived there), and had the same issue but being young and naive I just never considered the matter until I was actually there!

However, back then how I got a history was to get a small stereo on credit, I think it was less than $200 then, it's a small item and you may get it relatively easily. You've then got a history and go from there.

However, as I said, it was a long while ago so things have probably changed a lot in nearly 20 years.

PitRejection2359

ybbon66 wrote: »

I moved to the US in 1994 (so I know a long time ago - hell I've been back longer than I lived there), and had the same issue but being young and naive I just never considered the matter until I was actually there!

However, back then how I got a history was to get a small stereo on credit, I think it was less than $200 then, it's a small item and you may get it relatively easily. You've then got a history and go from there.

However, as I said, it was a long while ago so things have probably changed a lot in nearly 20 years.

Thanks ybbon - I think you're probably still right: as soon as I can get any kind of credit I intend to spend spend spend, paying back in full every month to increase that history and depth!

Buzby

Donlt know why you think this is a problem - Both Experian and Equifax run their services in the USA, and there is no difficulty in accessing your previous record, but you need to start the ball rolling with a US purchase or mobile phone contract. As you will be required to give your previous address, this will provide the link, and your file will follow you as before.