How to get a secured credit card without credit history in the USA
It is difficult to get a credit card in America (a secured credit card) without a credit history, but nothing is impossible. There are ways to establish yourself well and increase your credit rating.
In America, if a person does not have the credit card, he will become suspicious. In supermarkets, people pay for purchases by the credit card. Attributes of the "American Dream" are also purchased on credit. Therefore, plastic is a must. However, it is very difficult to obtain it without the credit history, especially to an emigrant.
However, everyone has to start somewhere. There are several ways to get the credit card without the credit history.
In this article we are going to tell you how to build a good credit rating in the United States.
Buying a car on credit
It is the most obvious and convenient way to get the credit history for an expatriate. You can get your first loan by buying a car using a special program designed for new citizens of America. The rate of the loan will be high at first - more than 20% per annum. But over time, it will decrease if payments are regular. The main thing is to pay carefully and on time. Delay in payments even for 12 hours will affect the credit rating.
Why should you use this method? In America, there are several necessary things without which it is impossible to live. Among them are ID, the credit card and the car. An expat receives ID mandatory. The only things he should do are passing the driving exam, getting the car and starting his credit history. Buying a car with a special program is a great opportunity to “get two cracks at bat”.
Buying electronic equipment
You can start the credit history in the home appliance store. You can improve your rating buying equipment on credit. And this is a guarantee of the client’s solvency for the bank. It is true that the client will be forced to pay a substantial down payment by acquiring equipment on credit - about 80% of the purchase price. But the technique is usually not so expensive.
You can increase your rating by getting credit cards from retailers. These cards are offered by supermarkets and gas stations. They can be used only in the respective stores. Card accounts must be replenished on time. If you do not replenish the account, your credit rating will be spoiled before it starts to grow.
Most popular network cards are Costco, Best Buy, T.J. Maxx, Target, Kohls, JC Penny, Macy’s.
Prepaid card (debit card)
Some banks offer customers to start with a prepaid card. Not all US banking organizations take this step, but individual banks issue such cards. The prepaid card is a plastic on which the client’s money is lying. He uses his funds to show how he can manage finances. If there haven’t been any delays during a certain period, then the bank issues a regular credit card.
This method is also convenient, but it requires careful handling of the card. Delays are not allowed, even if the owner spends his money. It must be remembered that at this stage the reputation of a bank customer is gained. If you ruin your reputation, the rating will fall and you will not be given the credit card.
Credit History Points in America
The expat receives points for timely payment of funds when he uses the credit card. If there is the delay, the rating goes down - points are taken away. It is profitable to have the good credit history and a high score - the holder of a high rating can count on the loyalty of banks. He gets loans at a lower percentage. In some cases, the borrower may be granted an interest-free loan. For example, such a loan can be obtained when buying the car on credit.
How can you maintain and increase the credit rating? You must always make payments on the card on time in order to do this. It is recommended to pay bills even a little earlier and deposit a little more than the minimum payment on the card. Then the rating will grow.
Do not send in a short period of time a lot of requests for a loan. This is bad for the rating. Moreover, a lot of requests reduce a creditor confidence. It is better to look for banks where credit will be given for sure. Then there is a chance to raise the rating and get more favorable credit terms.
Of course, the credit history can be corrected. The rating is reseted once every seven years. But you need to live somehow during this period, and it’s hard to live with a bad credit history.