poisonsag

Hello fellow FT'ers

My wife will be moving to USA shortly. I would like to build up her credit.
Background: She has never ever had a credit card and will not be working for the first few months she moves here.
I know it will be tough initially but would want to make progress from somewhere.

I have banks with Chase and will be adding her name to my accounts. Do you think she will get approved for Chase freedom? If not how would you guys recommend i start her journey?

bwiadca

Adding her name to your account won't help her build the credit. She should open store account at Nordstrom or Macy's and purchase something equivalent of 50% of her credit line. Make monthly payments on time and let her credit history build up. Just don't expect that after 6 months she will be approved for regular credit card. It takes time to build up credit history.

tmiw

I was able to get a basic Bank of America card (which eventually became a Cash Rewards card) while I was in college. I had no prior credit history, just a checking account with them. This was before the financial crisis though, so things are probably a lot different now.

OP, I'd consider a credit union too; they'd probably cut your wife some slack compared to the major lenders.

mbece

Best is to check with the banco she uses. If not, I'd recommend getting a secured card like BoAs.

blitzen

Years back being added as an authorized user ( citi)added 10+ year to my credit history and got me zero to750+
And American Express used to report you foreign history ( if asked). Maybe the still do.

porphyra

American Express is the way to do it. I moved from Canada to USA, and Amex used my Canadian Credit history to issue me a US based card (I chose the Blue Cash). Bonus was that it reported my start as the first day I started my account in Canada; so essentially the credit bureau showed my oldest account as the same date as when my Amex account in Canada was first opened.

Of course it will still take time to build a real healthy credit score, since you will only have that 1 account initially. But it is a good way to start. I went from nothing to 730+ in two years thanks to my Amex card, and then other subsequent applications.

stupidzbu

I made mine a joint on my amex and she suddenly got 15 years Aaoa

That's the way to go

Or you could also make her joint on a CC with chase that you have $10k+ CL on

NYCRuss

How long ago did you make your wife an AU with Amex? I was under the impression that they clamped down on AU MSDs late last year.

NYCRuss

Here's another recommendation for a BoA secured card. Specifically, go into a branch and request to apply for a BoA secured Travel Rewards card. If you're able to apply $10,000, do that. She'll start with a nice credit line, which will make it easier to get decent credit lines with other cards. Even if you can just start with a $500 line, it's better to start now than later. She'll have a rewards card, with no FTF, that can graduate to unsecured after a year. It has no annual fee, so she can keep it open for years to help with her credit.

Now before she does anything, make sure that she has a U.S. social security card, and a U.S. ID with your current address. A drivers license works. Proper ID makes everything easier.

Because your wife has never had a credit card, I'd start with just one. She needs to learn to pay in full every month.

Once the card has reported for six months, I'd recommend at least two more no-annual fee cards that provide utility now, and that have the potential to be useful moving forward. I'd go with a Chase Freedom and an Amex EveryDay. Perhaps a Citi Double Cash.

She'll have at least three cards with top banks, that will age, and her Amex MSD is established for the future.

Once she is comfortable with handling multiple cards, you can take it from there.

poisonsag

Thank you so much for your tip. Very helpful!

waingro

Definitely add her as an authorized user on all of your cards. Then wait at least 6 months before applying for her own cards. That's what I did, and my wife started churning and burning after only a couple of years in the US.

NYCRuss

Adding someone as an AU can help move the process of establishing credit along, but it doesn't help build a foundation. The value of being an AU is in automated approvals. It won't help if an experienced credit analyst is doing a manual review, which often happens at our request. An analyst will see the AU accounts, and likely discount them. It's like adding new Amex cards with an old MSD. They definitely help FICO scores. An experienced analyst can see if a 29 year old Amex is really a month old Amex.

So I still recommend that a foundation be built with useful no-annual fee, non-cobranded cards from the financial institutions that offer the most compelling credit card products. As this foundation ages, a person's options improve, whether with automated approval, or judgmental approval.

Is adding the OP's wife as an AU in addition to her own accounts helpful? Sure. Should she wait six months with only AU cards before she applies for own? If the only other option is to get a card from a predatory bank, then I'd say just go the AU route for now. If, however, she is able to get something like a BoA secured Travel Rewards card now, then I strongly recommend that. Her own first card can be augmented with AU cards. That should work out fine.

Let's also keep in mind that the OP's wife has never had a credit card. I don't know if only one card now is the best option, with more added in the coming months, or if getting several all at once is best for her. That's ultimately for the OP's wife to decide.

knowledgeispower

I highly recommend you add her on all your accounts as an Authorized user. It will not necessarily help her all the way, but it will give her something to start with on a credit report which can help her get a generated auto-approval for some credit cards.

I found any college cards to be really nice about opening a no-history account. My wife's first card after moving to the USA was a Citi Dividend College Card and it was approved with a $2500 limit, not bad for a first card! After that we got her a Chase Freedom and then from there a Discover. Discover college cards can be hit or miss.

But do add her as an Authorized user, if anything it will help by increasing the age of her credit report. I find not all cards report though, so add her on as many cards as you have (older ones preferably). If you have an Amex definitely do that as well as those will report with a SSN which is even better.

mbece

Yeah, you can definitely build a solid credit score in under two years without being added as an AU (I know, I've done it) however, it will help your AAoA a lot if you can backdate at least some of her accounts.

I'd add her as an AU in a card or two, get her a card of her own (even if secured) then, after 6 months of good credit apply for two or three no fee cards (Freedom, Discovery, Amex Everyday) that she can use/sockdrawer to show true credit management in case of manual reviews. After a couple of years, she can slowly start churning.

If Amex is not backdating AUs anymore, she should get an Amex herself as soon as she can so later cards are as backdated as possible. (For reference, I got my first and so far only personal Amex after 6 months with my secured BoA card).

eajusa

Yes! Be practical. Start by applying for Amex Blue Cash or Blue Cash Preferred. Buy groceries, get cash back, pay on time. In a few years she will be established.