Beginner Credit Cards for an American living abroad
Posted by Jaded-Archer-498@reddit | expats | View on Reddit | 20 comments
Hello everyone,
I'm an American currently living in Germany, and I just turned 18. I'm looking to build a credit score so that if I move back to the U.S., I won't have to start from scratch. Additionally, I've noticed that U.S. credit cards generally offer more benefits than German ones, such as cashback and travel miles. Up until now, I've only used debit cards and haven't had any credit cards. Also, I don't have a U.S. address at the moment.
alwaystooupbeat@reddit
You need a US address. Once you have that, you can get a card. The best one is American Express; they can use your foreign credit history to issue you a card. Here's the link:
https://www.americanexpress.com/us/credit-cards/features-benefits/us-newcomers/
It uses Nova Credit.
As others said, a secured card is the other option; capital one has one, for example.
Notably, you should be aware that you will struggle with the credit history for a while. Because your earliest line of credit will be only a few months old, you'll have to wait for a while before you can apply to a "big boy" card. If you're looking to study in the US, there are cards that are for students that you could get, which have looser credit requirements.
Jaded-Archer-498@reddit (OP)
Is it possible to use a temporary U.S. address, for instance, if I plan to stay there for a year before returning to Germany for my studies, and then eventually move back to the U.S.? Alternatively, could I use a temporary postal address for verification purposes?
alwaystooupbeat@reddit
I'd say yes? but this is a legal question or a question you would need to ask someone who is more well versed for this. I would recommend against having a temporary address. If you're living there for a year, with a lease or sublease in your name, that would be fine.
monsieurlee@reddit
You can't
The other problem is that many credit cards charge a foreign transaction fee when you use them outside of the US. The one that don't are generally "premium" cards that has an annual fee, and require higher credit score (\~700+) before you can get it. If you have no credit history, you won't be approved.
The one option would be to get an American Express. American Express will extend you a credit line in another country based on your existing relationship. So the workarouns is to get an American Express in Germany (I don't know what it takes to get one), and after you've established some history with American Express in Germany, when you do move back to the US, use your existing relationship with Amex DE and get an US Amex.
But honestly, once you are back in the US you can get a secured credit card at first, and after a few month you'll have credit history, and in a year or less of paying your shit ontime you'll credit score will go good enough for situations.
Jaded-Archer-498@reddit (OP)
Thank you. Do you know if it possible to use a temporary U.S. address, for instance, if I plan to stay there for a year before returning to Germany for my studies, and then eventually move back to the U.S.? Alternatively, could I use a temporary postal address for verification purposes?
faithinhumanity_0@reddit
Yes that’s absolutely fine.
Jaded-Archer-498@reddit (OP)
Are both ways fine?
faithinhumanity_0@reddit
Yeah both work. I’ve used both depending on the need at the time
faithinhumanity_0@reddit
Do you have any family In the USA?
Jaded-Archer-498@reddit (OP)
Nope unfortunately not
MappyMcCard@reddit
Have you thought about becoming a registered user on a parent’s card in the U.S.? Will help you get credit history in the baclgrpund
Jaded-Archer-498@reddit (OP)
Unfortunately no option for me because my parents also moved to Germany
monbabie@reddit
Do your parent still vote in the U.S.? Presumably they have a last legal address and they could try to open a card with that address. Additionally, now that you are 18, you also have the right to vote and you would also use that address.
Jaded-Archer-498@reddit (OP)
So the thing is, I’m the only American in my family. I can vote, and I already requested to vote via email, for that I didn’t need a current address.
forreddituse2@reddit
You can use your parent's address and apply for a secured credit card.
Jaded-Archer-498@reddit (OP)
Unfortunately no option for me because my parents also moved to Germany
jazzyjeffla@reddit
I’m in the same situation. From what someone told me I can worry about it when I arrive to the US. By using a credit union as my bank and working with them. Not really sure. I was also just thinking and buying everything I need in cash. And live in a shared house while slowly building credit.
There’s also companies that can sign off on you if you do not have a credit score so you can rent an apartment.
Idk but there seems to be options. Of depending on what you wanna do with the credit score.
iyimuhendis@reddit
No US address means you will not get a credit card in the US generally
One thing i can think about is SDFCU. They allow expats open checking with foreign address. When you do that you might also be able to open credit card with them, not sure... but the "join" link in their website doesn't work from this country where i reside ( at least as far as i tried from different locations and computers). May be from Germany it works. You will need to prepare your documents first though.....good luck
katmndoo@reddit
Sdfcu also has chip and pin by default, which could be a plus in EU.
dwylth@reddit
You're unlikely to get an American credit card with no address, income or activity in the US.