Building credit from no credit (not bad credit). - Posted by tb

Posted by Sean on February 18, 2000 at 07:50:13:

Get a secured credit card. Start with and you can get a credit card for only $100.00 security deposit. After 9 months of responsible use you should be able to qualify for unsecured cards.

Building credit from no credit (not bad credit). - Posted by tb

Posted by tb on February 18, 2000 at 01:11:35:

First, I`d like to thank all of you who are taking the time to read and respond to this post.

I am currently, and have been, living outside the U.S. for the past 9 years. I will be moving back to the U.S. later this year and realized that I have no credit record whatsoever. My question is twofold.

Is “no credit” easier to build from than “bad credit”, and if so what ways would one go about “building” credit from where there is none?

Thanks a Million in advance for your time and responses!


Re: Building credit from no credit (not bad credit). - Posted by David Butler America’s Note Network

Posted by David Butler America’s Note Network on February 18, 2000 at 20:03:31:

Hello tb,

Absolutely - starting with zero credit is much easier than having bad credit. Basically, good credit history adds points to your credit score, bad credit takes away points… and looks ugly on your credit profile too (some uglier than others, obviously).

So, you are able to start from ground zero, rather than having any mess to clean up along the way.

Depending on your circumstances, there are several ways to start obtaining credit. If you are going back into your own home town, and dealing with a bank that has had you or your family’s business for years, you should be able to get a decent card - if you have current employment.

If you used any American credit before, or during your overseas tour of duty, you can easily reestablish with them. Also, if you used foreign credit, you can obtain reporting histories from them, to document your activity overseas (there is no international credit clearing house at this time - even if you use Visa or MasterCard accounts, they are tied to issuing banks. American banks will show up on your credit report, foreign banks won’t).

Employment history and current employment will be the most important criteria more most credit card and small personal loan underwriters. If you work for some large firm like Fluor, Bechtel, Exxon, etc, and are back in states now, in the same line of work (preferably with the same employer)it will be very easy to reestablish credit stateside.

Establishing a credit history requires 12 months rating on a credit account. Ideal profile lenders like to see is four major accounts with limits of $1,000/$1,500 or larger, at least 12 months history on three of them, and 36 months history on one of them, and all active during past 12 months.

Doesn’t mean you have to carry balances, just using credit for purchases. You might want to review the article “Understanding Credit and Credit Reports” on our website. Just click on our banner above for the direct link (not American Note).

Hope this helps

David P. Butler, Vice President, Broker Relations