Getting a credit card in the US…
Disclaimer: This note was intended to be published on May 2015
When it comes to building credit, people who come to US for first time face difficulties, and these are the main three Reasons:
- You just arrived to the country: You don’t have proof of residency yet, even if you are renting an apartment, it takes 1 month to start receiving email on that address.
- Not enough credit history… of course! building credit without having credit!! yikes!!! :S
- Not enough support from baking, because you don’t fulfill the reason above.
Then… how I’m supposed to get a credit card?
Introducing “secured credit cards”!
There is a story behind this concept, more info [here]( https://en.wikipedia.org/wiki/Credit_card#Secured_credit_cards) but long story short, they help people rebuild credit.
Some people say that with a secured credit card it takes much time to build credit again, in the best scenario up to 1 year. Although this might be true, you can apply and do some tricks to reduce the time.
Fortunately you have many choices when it comes to secured credit cards:
Discovery, Credit One, citi,merrick, just to name a few but the list is long…
But what about enrolling to macy’s, cvs, kohls, walmart etc…?
I didn’t try this path, but I believe that real money is what banking and credit institutions look for.
So, which one should I pick?
I highly recommend Capital One.
As any other secured credit card, you need to make a secure deposit (starting from $50) and your account opens with $200 more, so you now have $250 to use it wisely. plus 0 annual fee 😀 yai! It’s super easy, you just need to fill up the online form and 100% of the times you will get approved.
How can I start building credit?
The most important thing is avoid spending more money than your income, it sounds like a cliché but if you don’t afford buying right now, will be better if you save money for a couple of months.
Avoid monthly payments: this little expenses may sound attractive, but at the end of the month you will be wondering why money is missing.
Try to use your card as much as you can, treat it like cash, and before the payment due date, pay all the balance, this will boost your credit history a lot.
Avoid applying for more credit cards otherwise it will affect your credit score.
For more information you can visit: https://www.capitalone.com/credit-cards/secured-mastercard
Or for discover: https://www.discover.com/credit-cards/secured/
If you have questions I’d be glad to help you :)
