Establishing Credit History

[dflach]

Hi All,

If all continues as planned my family (wife, 2 kids) and I will be moving to Melbourne in March/April.

I have about a thousand questions but the first one is financial: How long will it take to establish a credit history there and will banks or other lenders be able to access my US credit history? We will need to buy cars, furniture, electronics..... and even house rentals sometimes check on past credit history. Will I be subject to outrageous interest rates or will my excellent US credit history help me at all?

Thanks!

[cmallon]

Hi there,

From what I have read on other posts your credit rating starts from scratch. You shouldn't have a problem getting credit though, my sister-in-law and her family have just gone over and got credit for a car straight away because they both have jobs.

[Baby75]

Originally Posted by dflach

Hi All,

If all continues as planned my family (wife, 2 kids) and I will be moving to Melbourne in March/April.

I have about a thousand questions but the first one is financial: How long will it take to establish a credit history there and will banks or other lenders be able to access my US credit history? We will need to buy cars, furniture, electronics..... and even house rentals sometimes check on past credit history. Will I be subject to outrageous interest rates or will my excellent US credit history help me at all?

Thanks!

Very good question
as far as i know you need 6 months good banking history before you can apply for a mortgage .

hopefully some one else will have more information
Niamh

[scottishcelts]

I just assumed that if you a good steady job you will get credit no probs.

I don't know about the 6 months wait for a mortgage application though, i though it would have been easier than that, depending on you salary.

[Bevdeforges]

Not all countries use "credit history" like the US does, and I've been in the opposite situation - where the US won't take any information about your history elsewhere when you apply for credit. (Even after a brief stay - one year - overseas.)

I've never been to Australia, but I know in Germany I was taken by the plant manager to meet the bank manager for the bank that the plant used. (OK, it helped that I was the new plant controller.) Depending on your exact title and level, that may be all it takes to set up a perfectly outrageous line of credit. Ask your employer if they have any deals with their bank for employees who open accounts there.

[Baby75]

Originally Posted by scottishcelts

I just assumed that if you a good steady job you will get credit no probs.

I don't know about the 6 months wait for a mortgage application though, i though it would have been easier than that, depending on you salary.

i could be wrong or may be thats in relation to some one who doesn't have any money from a previous house sale. so starting out trying to remember what i was told at the expo last year from westpac

[kaz101]

Some of it may depend on the jobs that you have.

We have found from experience that if you have jobs with a good income then it's easier. It doesn't seem to matter so much on previous credit history (we had an excellent one in the UK) or how much money in the bank (we had quite a bit after our house sold) but how much you are getting from a regular income.
We didn't have jobs in Oz, other than my online business, and couldn't even get a credit card!

We bought the house on a previous trip to Australia based on our earnings in the UK. We were told that was the best way for us to go. We have a pretty good mortgage broker so if you want his details drop me a PM. No I won't get anything for recommending him either!

Regards,
Karen

[Akatrin]

Why not get a credit card that's accepted worldwide, then don't close your original account until you've a new one here?
(but Amex isn't accepted everywhere in Australia..)

[kaz101]

Originally Posted by Akatrin

Why not get a credit card that's accepted worldwide, then don't close your original account until you've a new one here?
(but Amex isn't accepted everywhere in Australia..)

We've still got a UK credit card with our new Australian address but we'd have to pay extra fees for using it since the base currency is still in GBP. We're quite happy using a visa debit card until we find someone who wants our business

Regards,
Karen

[Akatrin]

I've found visa gives some of the best exchange rates for GBP to Aussie dollars. I was only charged for withdrawing money at an ATM from a visa card while travelling, and even that was only $5... using it as a credit card did not incurr any extra fees. Is it different when you move, or is it just your bank?
I am moving from AUS to the UK soon, and had been of a mind to use the credit card to put down the deposit/ first month's rent on a flat.