Guaranteeing credit card for someone new to country

Menippus

Someone with whom we have become friendly has just moved to the UK from the US.  While he has good employment here,and property and a good credit rating in the US, he has no credit history here and so can't get issued with a credit card.  We would be happy to act as guarantor for him - and, in effect, act as the backstop on a credit card for him, so that if he could not pay, we would clear his debt.  The card would be issued on the strength of my credit rating.  He would have a useful credit card, and could build up his credit record through its prudent use.  Does any UK bank operate such a scheme?  (We feel for him, as we hit exactly the same problem when returning to the UK after working for a long period abroad.)  This is not an enquiry about a starter card, as he needs something with a reasonable credit limit.  If anyone knows of a UK-based secured credit card - i.e. where one would pay in, say, £2,000 and be given a card with that as a credit limit - that would be equally good.  But again, does any UK bank currently issue such a thing?)

Ebe_Scrooge

Not as far as I'm aware.  The only way to do it is to use a credit-builder card - or the usual other methods such as a mobile phone contract, etc, that will help to begin building a credit history.  Why does he need "a reasonable credit limit"?  If he doesn't have the cash available to buy stuff, then it would be foolish to stick it on a card anyway.

One possible solution would be to add him as an additional cardholder on your account.  But that doesn't help him build a credit history, and you would be solely liable for anything he spends on the card.

Pre-paid Visa/Mastercards are available, but they're not really credit cards as such, more like a gift card - you just load them with a sum of money then you can spend it anywhere that accepts Visa/Mastercard as appropriate.

One caveat - you say you have "become friendly with him"?  I'd be very very wary of lending money or acting as guarantor in any capacity to anyone you don't know very well and trust completely.

callum9999

Did they have an American Express or HSBC premier account in the US?

Sandtree

You can probably add Citi to the above question if the job is really good.

What Callum is hinting at is that some multinational banks allow you to move your products between countries effectively based on your relationship with the organisation rather than your credit score in your new country.

Its certainly worth him checking with his US banks to see if they operate here or have a relationship with anyone that does similar but it tends to be the former and for "premium" account types.

pbartlett

maybe the place to start is their own (uk) bank - if he has good employment here then presumably the bank can see salary etc coming in etc

callum9999

Sandtree said:

You can probably add Citi to the above question if the job is really good.

What Callum is hinting at is that some multinational banks allow you to move your products between countries effectively based on your relationship with the organisation rather than your credit score in your new country.

Its certainly worth him checking with his US banks to see if they operate here or have a relationship with anyone that does similar but it tends to be the former and for "premium" account types.

I don't believe Citi issue UK credit cards. I think HSBC and Amex are the only two options - though HSBC suspended a lot of it during Covid so I'm not certain they'd do anything either.

Sandtree

callum9999 said:

Sandtree said:

You can probably add Citi to the above question if the job is really good.

What Callum is hinting at is that some multinational banks allow you to move your products between countries effectively based on your relationship with the organisation rather than your credit score in your new country.

Its certainly worth him checking with his US banks to see if they operate here or have a relationship with anyone that does similar but it tends to be the former and for "premium" account types.

I don't believe Citi issue UK credit cards. I think HSBC and Amex are the only two options - though HSBC suspended a lot of it during Covid so I'm not certain they'd do anything either.

I am fairly sure they used to but could well have stopped... our plans changed so never switched to them

RBYHS

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