Bad credit history checked by other countries

[thenardier]

Hi,

I wish you could help me with my predicament with my credit history here in Singapore. Let me give you a background:

1. I've had some credit card accounts that got got suspended because of non-payment.

2. But all my obligations are now cleared. I've paid all my due up to the last cent.

3. I understand that the Singapore Credit Bureau keeps a record of my credit history which concerned parties are able to view.

4. Now, I'm moving to the US for a new job.

5. Upon settling there, I will have to apply for a new credit card. (i'd like to believe i've learned from my mistakes... i'm gonna handle my new responsibly)

Question:

When I apply for a credit card, will the banks in the US check my records in Singapore? Will my application be affected by my Singapore credit history?

Appreciate your helpful replies.

Thank you!

[offshoreoildude]

Avoid the same bank as you defaulted with. They keep default information internal and you'll be flagged as a risk if you apply to the same bank in the USA as you ripped off in Singapore. I don't think the US credit bureaus check with the Singproe ones but there is a small chance you could be asked for a credit reference for Sing.

[JR8]

^ +1

And

No one in the US is going to extend you, as a new arrival (irrespective of your history), any significant credit at all.

I moved there with an A1 pukka credit history and struggled to get a charge card with a $250 limit on it. A year later of perfect spend/pay I think I got something with a slightly less hideous % on it, and a (whole!) $1k limit.

The irony that I banked back home with 'The Queens bank' and had a £20k/month limit on my UK credit card with a perfect record mattered not one jot.

When you're talking to a US credit card call centre 'abroad' might as well be the moon.

Maybe consider not getting a credit card at all.

[uscate]

Getting any kind of appreciable credit in the US is challenging, primarily because in the heyday of our economy people spent like drunken sailors and had no concern about tomorrow - I'm sure you know the drill....

You may want to see if your current employer is affiliated with a credit union that you can join.

Good luck in the US!

[vishalgupta2]

The truth is in the US you won't get any credit. Beware of getting credit from banks like HSBC, premier, credit one etc. You will be screwed up if you did. Yes HSBC is considered a terrible bank (almost parasitic) in US.

With a blank credit file in the US, the best bet is to start with a secure card. Bank of America is what I recommend to everyone for 1st secured card (with NO history like you). 3 months after your BofA secured card, get a store card (my choice here is JC Penney).

No more applications for 1 year. You will anyway have a lot of hit on your file in 1st year (everyone from apartment rentals and all utilities make hard inquiries on your credit file). Make sure that your credit card statement never has a due of more than 5%.

1 year later you should be all set.

Oh yes, I don't know Singapore credit industry well but in the US every application you make for credit counts as a negative. Have more than 4-5 on your file in a year and no one will give you any credit. Make sure that you are not applying everywhere, every decline pushes you deeper into the pit.

I know all this coz I write on fico forums in US. I have also written some blogs on building credit history on different US immigration sites.

Now the big bummers:
1. If you don't have credit history, NO one will give you a postpaid cell phone connection.
2. No one give you a car loan unless you make a CD for the amount equal to car loan. (Actually DCU may give you a loan at say 11%)
3. Utility bills (phone. electricity, internet, rent etc don't build your credit, but will screw your credit if you miss payments)
4. You may have to pay a much higher deposit for rental apartments, internet etc etc.

Contrary to what JR8 said about considering NO credit card, I disagree, your life in US is a mess with NO credit card.

Let me knwo if you need more info.

Maybe consider not getting a credit card at all.

[Mi Amigo]

^ +1

And

No one in the US is going to extend you, as a new arrival (irrespective of your history), any significant credit at all.

I moved there with an A1 pukka credit history and struggled to get a charge card with a $250 limit on it. A year later of perfect spend/pay I think I got something with a slightly less hideous % on it, and a (whole!) $1k limit.

The irony that I banked back home with 'The Queens bank' and had a £20k/month limit on my UK credit card with a perfect record mattered not one jot.

When you're talking to a US credit card call centre 'abroad' might as well be the moon.

^^^ THIS.

I had a similar experience in the US. My long-standing good credit history in the UK counted for nothing when trying to open a bank account, get a credit card, etc. Fortunately one of the sponsors of the project I was working on was a bank, so after a few chats to the relevant people, I was invited to the bank and duly presented with a package of cards, cheque book, etc. Otherwise I would have been up the proverbial creek.

To the OP, hats off to you for clearing your debt and meeting your obligations, unlike some folks who do a runner from here leaving a trail of unpaid debts. Good luck.

[offshoreoildude]

Vishal is right about it being impossible to live in the US without a CC - same applies to most western countries. No flights / rental cars / hotels / online anything.

You can live in Asia without one solely on cash provided that you don't need to do too much online,

[zzm9980]

The way to build up your credit in the US from zero is utility bills and store cards (Macys, Sears, JC Penny as mentioned, etc). Buying a car is good too, but not if you're staying short term.

[JR8]

Vishal is right about it being impossible to live in the US without a CC - same applies to most western countries. No flights / rental cars / hotels / online anything.

As mentioned my first card had a $250 limit. As a part of the process of getting a better card I routinely spent to the limit each month, and paid it off in full by the due date.

If you think you're booking flights and hiring cars etc on any balance left out of $250 I would suggest that you are mistaken.

For most day to day things a debit card sufficed. For car hire (which I did once) a relative hired it and had me down as a named driver.

p.s. [Whimsical thought]. Ironic that I bought two cars with cash, but didn't have the necessary 'credit' to hire one for a day!

[vishalgupta2]

The way to build up your credit in the US from zero is utility bills and store cards (Macys, Sears, JC Penny as mentioned, etc). Buying a car is good too, but not if you're staying short term.

Utility bills have nothing to do with building credit in the US. They can screw up credit if you miss a payment though.

Now, NO store gives anyone a credit card unless the applicant already has a credit card.

Going with a secure card in the beginning is the best bet. I started with a $500 BofA secured and 3 months later I took a JC Penney card which came with a petty $300 Limit, which grew to 2250 in a year.

In 1 year with just these 2 cards, I was able to get some good cards with limits around 10k.

[vishalgupta2]

From my experience and understanding of Fico.

As mentioned my first card had a $250 limit. As a part of the process of getting a better card I routinely spent to the limit each month, and paid it off in full by the due date.
Getting your card report anywhere close to limit is a bad idea. The way it works for the first few months until you can get a better card is, pay off your spends every 2-3 days and ensure that the statement shows less than 10% due. In addition to that 1 credit card hurts scores coz credit score also measures what %age of your cards have balances.

If you think you're booking flights and hiring cars etc on any balance left out of $250 I would suggest that you are mistaken.

For most day to day things a debit card sufficed. For car hire (which I did once) a relative hired it and had me down as a named driver.
The only problem with this is the cost, I do understand you probably had no other choice but I still feel bad about paying 10-15$ a day for the extra driver

p.s. [Whimsical thought]. Ironic that I bought two cars with cash, but didn't have the necessary 'credit' to hire one for a day!
I know this is really broken.

[vishalgupta2]

To the OP, hats off to you for clearing your debt and meeting your obligations, unlike some folks who do a runner from here leaving a trail of unpaid debts. Good luck.

+1

Wish every one was sensible and responsible like the OP.