Requirements for a US Credit Card?

[PapaRubbery]

Sorry for what may seem a silly question - but the points addict in me wants to know what the requirements would be to open a US-based CC?

A lot of big sign-on bonuses with US card companies, and most have very cheap annual fees or there is no annual fee.

My understanding is that non-citizens would get rejected, as they are too much of a liability for the bank. I understand that. However, if one was to open a CC with the minimum limit and then open an account with that same bank and deposit an amount equal to the credit limit - then the bank would have complete security.

Is this at all possible, or am I just dreaming here?

 

[The Rok]

Your dreaming. It is notoriously difficult to build a good credit history state side.

For starters you will need a residential address, drivers licence, IRS no., and the list goes on. If you were working a lot in the US then it might be worth it but other than that, forget it.,

 

[futaris]

A credit card is pretty much impossible.

Not too hard to get a Visa, Mastercard debit card in USD based in the USA though...

 

[NM]

Without a US Social Security number you have very little chance. Amex do offer a "relocation" option if an existing Amex members moves overseas, but I suspect that will still require a US SS number since anyone moving there to live/work will need to apply for a SS number first.

 

[dfcatch]

Even with a SS number, US address etc...

You still need to "build" your credit history - unlike Australia where you have good credit until such time as you screw it up, in the US you start with Zero credit and need to build a positive history and "credit score" before you can actually obtain credit.

 

[cove]

I did a little blog on how I got my Amex Premier Rewards Amex and then a Nordstrom card for their advance sales.
In Milepoint the Frugal Travel Guy has good info on which card to use if you get set.
My Experian credit score is marooned at 775 as I have never borrowed money in the US.Their highest number is 830.
I did have a Social Security number from 1984 and that helped.

 

[Pollywaffle]

I did a little blog on how I got my Amex Premier Rewards Amex and then a Nordstrom card for their advance sales.

I just read your blog about this which I found interesting.

My only US account is a Saks store card. I wanted a discount card (like other dept stores in the US give visitors) and the only way to do this was to apply for the card. I could not get a Saks Mastercard but they allowed me to apply for the store card. I was mainly interested in getting the discount for that day, and shopping done, did not think much of it later. I was surprised that some weeks after my trip Westpac called me to ask me why someone in the US was calling to verify my bank details. Somehow i did not think they would bother with such a small account.

 

[moa999]

Amex has separately and with Walmart launched (in the last few weeks) some preaid reloadable cards that appear to have minimal fees and from the T&Cs dont need a social security number.
https://www.americanexpress.com/us/content/prepaid/american-express-prepaid-card/cardmember-agreement.html
http://www.nytimes.com/2012/10/09/business/wal-mart-to-offer-prepaid-card.html

Edit;
Scratch that FAQ seems to disclose need for SSN

 

[burmans]

I did a little blog on how I got my Amex Premier Rewards Amex and then a Nordstrom card for their advance sales.
In Milepoint the Frugal Travel Guy has good info on which card to use if you get set.
My Experian credit score is marooned at 775 as I have never borrowed money in the US.Their highest number is 830.
I did have a Social Security number from 1984 and that helped.

775 would be more than good enough to leverage into more CC's to take advantage of the many signon offers!

 

[cove]

Maybe I am a good risk at 775 on Experian but I have paid everything on time and the score is straight lining for more than a year.
Private banking at US Bank have been really nice but I don't need a few million any time soon (I hope).
I have liked what Frugal Travel Guy has written on Milepoint and yes I can pretty much get any credit card in the US now if I want points.

 

[PapaRubbery]

Ahh your responses was my fear.

Oh well, back to getting Amex MR and buying USDM's when they have worthwhile promo's!

 

[wiz]

I have a couple of accounts in the US with debit cards attached. I have no intention of applying for a US credit card, but I wonder if these accounts will start to 'build' any US based crdit history, even though I don't have a SSN or an employee tax ID...


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[cove]

Wiz have a look to see if you have a credit file with one of the credit file gatherers like Experian. If they have you then you are developing a credit status.

 

[dfcatch]

I have a couple of accounts in the US with debit cards attached. I have no intention of applying for a US credit card, but I wonder if these accounts will start to 'build' any US based crdit history, even though I don't have a SSN or an employee tax ID...


__________________________________
My new blog: www.vacationkickbacks.com

Wiz,

The short answer is no these don't.

There is something called a "secured credit card" which operates like a debit card which you have to apply for, have an SSN, pay your deposit, and then use and pay off every month and it helps you to build a credit history.

The standard debit cards (or "check card" as it's called in the US) won't build any credit, and certainly not without an SSN.

 

[smit0847]

Yeah short answer is 'way too hard'.

Apparently if you find work there on a working visa you can get a SS number (as an Aus resident) very quickly so if you were ever wanting to take a career break.....

 

[kempvet]

This is a real life experience for me at the moment, so lets read on:

It is very hard for a foreigner in the USA to get credit cards, better to say impossible without a SSN. I have no choice in the matter as I have an infant daughter to support over there at the moment and paying everything upfront in cash is a real burner. Best to say, you wont get a SSN unless you are with a company that is employing you on some type of work visa. You can get US bank accounts with a US address and utility bills in your name and Aust Govt ID, and prepaid credit cards but nothing is going to get you a credit score without a SSN or ITIN.

I have had to start a small LLC in the US, which pays me a small wage for being there and doing things related to my work here in AUS. I transfer money into the LLC as management fees etc, then pay myself. Then once I file a US tax return I can get a ITIN (individual tax ID number). NOW, this ITIN can be attached to a prepaid credit card, bank accounts etc, and after about 6 months of proper use of a prepaid CC I will qualify for a small normal CC.

It will take 12 to 18 months to have any really meaningful credit score. The funny thing about credit scores in the US they follow a law of diminishing returns. Once you get to 750, it is difficult to go past the 800s.

Now all this cost money, tax accountants in the US, company filing and registration fees, so you need to REALLY have a need to do it in the first place, certainly would not do it for airline points, it would be cheaper simply to buy the points or airfares.

However once in place, the bounty can be released, Chase bank visa card with 40,000 AAdvantage miles goes a long way, anywhere in AUS to US gateway stop over, then anywhere in the US, Canada, Carribean or Latin America. Cheap car loans, after 2 years of tax filing, cheap housing loans.

Summary
Bugger to get, great once you have it, worth the pain in the long run, but you have to have a real need for US credit, as it is a pain to get.

 

[moa999]

I would however be interested in any "prepaid credit cards" that can be more easily opened, and ideally easily topped up from Australian sources.

 

[kempvet]

I would however be interested in any "prepaid credit cards" that can be more easily opened, and ideally easily topped up from Australian sources.

I am not certain that any of these prepaid cards offer airline points (could be wrong of course) and will need a US bank account associated with them, so you will need a US address with a utility bill in your name, also if they are topped up with AUS funds then there are the transfer costs (which could be more than the costs of using a AUS CC in the US but not sure of this). Also few place offer these prepaid cards, Chase Bank, US Bank and a few others don't offer them, Bank of America does and a few of the smaller credit unions perhaps.

 

[cove]

I think you can get Amex to transfer your account over to the US.
Or just run with 28 degrees as it is fee free but earns no points.

 

[kempvet]

I think you can get Amex to transfer your account over to the US.
Or just run with 28 degrees as it is fee free but earns no points.

I think that it has to be a genuine US AMEX card not prepaid card ( I am not sure if there is a prepaid AMEX card, I only saw VISA cards when I was there), if it is a genuine US AMEX card then you have the problem of a SSN and credit score building (unless perhaps you are on a US company payroll, like IBM with a 5 year contract). I like Russia with respect to credit, no credit check, if you are a month late for the rent, you find the locks changed and your possessions on the street, funny thing, this system seems to work most of the time.