Before coming to the USA I had never heard about “credit histories”, and I had already lived in 4 other countries. Strangely enough, in Europe for example, using a credit card means that you don’t have “credit- bility” , you live beyond your economical capacities and basically you are not trustworthy. You build your credit history by precisely not owing money to anyone.

In short, each time you move to a new country you must be prepared to start all over again. Especially if the country is in another continent and they speak a different language. Between the countries of The “European Union”, it’s easier to transfer your driving license records, your bank records, your mortgages records, etc…But in the United States, you need a social security number, a US identification, and a credit history; otherwise, no matter how good is your VISA, how much money you make and how many employees you have, if you don’t have a credit card and use it, you don’t exist.

I first came here with a student VISA and I had no idea how important was to start building my credit history until I realized I could not rent an apartment, buy a car, or have a debit card. So here is what I did, hope it can help:

1. I lived with roommates who wouldn’t care if I had a credit history as long as I gave them a deposit and punctually my rent.
2. I passed my driving license exam and had my US identification.
3. I bought a car cash on auctions, a-ha, no way I could ask for a loan.
4. I asked for my DMV records in the countries I lived, translated them by an official and expensive translator, and went on a quest to find a car insurance. (I have been driving since age 15 and never had an accident in my entire life. Even so, many companies wouldn’t assure me and the only one that accepted offered me  and exorbitant price. So be aware).
5. Meanwhile, I got a job on campus at the University.
6. With that job offer I could ask for a social security number.
7. With that social security number I could open a bank account.
8. With that checking account in place, I could apply for my first secured credit card. (Secure means they give you a credit limit but they are not risking anything since they hold that amount from your own money. It’s a prepaid card).
9. One year after using the secured credit card and paying it on time, I asked them to unlock the money, and applied for normal credit card. I chose one with mileage points because I travel a lot.

1. Once I had that one year of credit history, I started to look for an apartment on my own. When I found something correct, I talked to the Landlord, explained him my situation, and even if I had a good credit history, it was too short, so he asked for a 3 months deposit instead of one.
2. After 4 years of earning money, paying taxes, renewing VISAS, and building a good credit history (meaning paying on time the total each month), I decided to drop my mileage credit card,­–because it charges an annual fee and the flying discounts were not that interesting–, and ask for a “cash rewards” one.  Everybody recommended me not to do it because closing a credit card  hurts one’s credit score.
3. So my bank granted me the new “cash rewards” credit card but with a very low limit. I called the credit department and asked to transfer the limit I had on the mileage one. My credit score was close to 800, but they refused.
4. In the spirit of building up my credit history, I asked the same bank for a car loan. Don’t ask me why but they also refused.
5. So for 7 months, I went on the quest of: finding a used car, trading in my car, and putting on some extra money down so the amount asked for a loan would be smaller, but it was useless. Several private entities refused me a loan, and the ones that accepted, offered me ridiculous APRs.
6. Luckily for me, a Toyota dealer not only granted me a loan, but they granted it with 0 APR!!! So I traded in my previous car (also a Toyota), gave cash on top, and happily signed a contract to acquire a brand new car that will be mine in 3 years. The secret was to go towards the end of the year, when they are desperate to get rid of the current year’s models, and also to know exactly how much your car is worth in trade in. And negotiate; never settle to their first offer. Or second, or third. Be firm and know they can always lower the price even more.

Conclusion: Get a secured credit card as soon as you can. Pay on time. Be patient. Ask for an unsecured one, and go from there. They say the more credit cards you have, the more you are likely to get a loan. Personally I don’t want to deal with the hassle of juggling with several, “so I used this one this month, I’ll use that other one next month, wait did I paid the other one” etc…

Now, the next big challenge is going to be to get a loan for buying a property. Ahhh… I’ll keep you posted on that one. I’m informing myself about foreclosures and International banks… stay tuned, and good luck! And remember if your bank is picky and instead of helping you it puts you through too many difficulties, dump it. Go with the competition, it’s their loss. There! ’cause where is my $$$ bitch?