Credit scores - I'm the invisible man
June 6, 2017 7:27 AM Subscribe
What is a cost-efficient way for a long term (15+ years) US citizen expat to re-establish a credit score from overseas? Has anyone done this? I'm not moving back yet, but would like to get things set up.
So I am a long-term US expat and I have been looking at moving some investments back onshore for a variety of reasons. The other day I tried opening a Lending Club account - as an investor - and discovered they use credit scores to verify identity. And I wasn't in the system.
I no longer exist as far as the US financial system is concerned. I've given up on this particular investment idea for the time being, but I'm beginning to think a (good) credit score could come in handy, particularly if/when I ever move home. Other than paying my taxes, I don't have much in the way of financial ties to the US anymore.
Is there a credit card I can get with no foreign transaction fees and decent exchange rates that I could use to start rebuilding a financial profile? Has anyone else dealt with this? I'm basically looking for the least hassle (minimum effective dose) solution to get back into the system. Any advice?
So I am a long-term US expat and I have been looking at moving some investments back onshore for a variety of reasons. The other day I tried opening a Lending Club account - as an investor - and discovered they use credit scores to verify identity. And I wasn't in the system.
I no longer exist as far as the US financial system is concerned. I've given up on this particular investment idea for the time being, but I'm beginning to think a (good) credit score could come in handy, particularly if/when I ever move home. Other than paying my taxes, I don't have much in the way of financial ties to the US anymore.
Is there a credit card I can get with no foreign transaction fees and decent exchange rates that I could use to start rebuilding a financial profile? Has anyone else dealt with this? I'm basically looking for the least hassle (minimum effective dose) solution to get back into the system. Any advice?
With no credit history you're unlikely going to qualify for credit cards with the best benefits. The easiest way in your situation is starting with a secured credit card where you make a deposit in a separate account and your credit card limit is set up against that deposit. After a few months of usage of the card and ontime payments you will start building a credit history that will lead to the limit being raised or removal of the requirement for the security.
I can't vouch for these cards, but this looks like a promising start. 5 secured credit cards with no foreign transaction fees
posted by Karaage at 7:41 AM on June 6, 2017 [2 favorites]
I can't vouch for these cards, but this looks like a promising start. 5 secured credit cards with no foreign transaction fees
posted by Karaage at 7:41 AM on June 6, 2017 [2 favorites]
Another possibility is to open a US bank account and get a secured card.
Basically, they hold onto a cash amount equal to the card's (low) limit so that you can't bail on them (with no credit history, they have no way to determine the risk that you'll do so). Once you've established a record of using the card and paying it off, they return that cash and it's a "normal" credit card.
It's sort of a training-wheels card, but it'll let you get a toehold of credit history.
posted by Blue Jello Elf at 7:41 AM on June 6, 2017
Basically, they hold onto a cash amount equal to the card's (low) limit so that you can't bail on them (with no credit history, they have no way to determine the risk that you'll do so). Once you've established a record of using the card and paying it off, they return that cash and it's a "normal" credit card.
It's sort of a training-wheels card, but it'll let you get a toehold of credit history.
posted by Blue Jello Elf at 7:41 AM on June 6, 2017
When I had a similar problem after 10+ years abroad, I started with the Capital One secured card. Within about six months, I was getting so many credit card offers in the mail I considered leaving the country again.
posted by bradf at 7:58 AM on June 6, 2017
posted by bradf at 7:58 AM on June 6, 2017
I moved to the US as a UK citizen and with 9 year of excellent Canadian credit. Which counted for nothing. So I had to go the following route:
Open bank account (which I needed to do in person, by the way - not sure how you'd do that from Abroad)
Get Bank of America secured credit card (low limit).
Use it and pay it off every other month (minimum payments every month, clear balance every other)
Within 6 months they returned my secured amount and my credit started showing extremely well (into the 720's) straight away. I suspect there are things in the US (web services? VPN stuff?) that would maybe even make sense to use a US based card for. The difficulty may be the US bank account unless you have a US address you can use.
If that is an issue and you don't have family you can piggy back on, look at https://travelingmailbox.com or similar. That is a great way of getting a full US street address and you can manage or forward your mail from an online interface.
posted by Brockles at 8:35 AM on June 6, 2017 [1 favorite]
Open bank account (which I needed to do in person, by the way - not sure how you'd do that from Abroad)
Get Bank of America secured credit card (low limit).
Use it and pay it off every other month (minimum payments every month, clear balance every other)
Within 6 months they returned my secured amount and my credit started showing extremely well (into the 720's) straight away. I suspect there are things in the US (web services? VPN stuff?) that would maybe even make sense to use a US based card for. The difficulty may be the US bank account unless you have a US address you can use.
If that is an issue and you don't have family you can piggy back on, look at https://travelingmailbox.com or similar. That is a great way of getting a full US street address and you can manage or forward your mail from an online interface.
posted by Brockles at 8:35 AM on June 6, 2017 [1 favorite]
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In general U.S. card companies won't give you a card, for the (pretty reasonable) reason that it's very hard for them to collect on unpaid debt if you don't live in the U.S. Ideally you would have opened a card before you left and kept it open this whole time, but obviously that ship has sailed!
Maybe try a secured card, or do you have someone (sibling, parent?) who would be able to cosign for you or add you as an authorized user on their card? You can also pay someone to add you as an authorized user on their card but it's kind of sketchy.
posted by mskyle at 7:35 AM on June 6, 2017