Credit scores for apartment lease and auto loans (Palo Alto: apartments, rental)

[Zragitt01]

Is it possible to sign a lease for an apartment rental with NO credit score \ credit record? Same for an auto loan, can you buy a car with no history?

I will be moving to Palo Alto for a new job and all I will have is a letter from my employer that I am employed, and possibly credit references from my home country.

Thanks in advance.

[sonarrat]

Easy to do if you're coming from a foreign country. A US citizen trying to do the same would get an eyebrow raise.

As far as the auto loan, probably with a decent down payment it shouldn't be a problem. Even with good credit I always put $3000 down or so to get a better interest rate.

[gone down south]

I went through the same hassles almost 10 years ago, and it's not that hard to get a car loan. You just have to explain your situation multiple times to a progression of people in various departments at the dealership and finance company until you find someone with a brain who can just make it happen.

The problem is going to be that with no US credit history you're getting put into the same category as a 16-year with his first credit card - expect to get the worst interest rates and terms they offer. For the first couple years here it's going to be really difficult to get credit cards, store credit, etc. You might want to look into getting your home country's bank to try to set you up with a US credit card through one of their partners if possible; that way you can start building a credit score here.

[milnivlek]

Lots of foreign nationals move here and rent apartments with no U.S. credit history. In my experience, this is rarely a problem, especially with larger (i.e. corporate) landlords. Most of the time, you just need to show them your job offer letter with salary information, and perhaps pay a larger deposit.

Auto loans will be a little trickier. As mentioned above, you can usually secure a loan, but the real issue is whether you'll qualify for the most favorable interest rates. You definitely should temper your expectations, at least for the first year or so.

[easybay]

Make sure you bring proof of insurance with you - a minimum of 3 years history. Your insurance rates will be the same as a 16 year old male if you don't provide proof that you are insurable. (Home and auto....I can't remember if we needed proof of health insurance when we immigrated). Where are you coming from?

When we came from Canada 10 years ago we were able to get credit cards with no problem, and since we didn't carry a balance it didn't matter what the interest rate was. The car loan will have an insane interest rate. Expect a 20%+ interest rate depending on the car. Your best scenario is to by a cheap used car and get the lowest possible loan to start to establish your credit history.

[sonarrat]

Originally Posted by easybay

Make sure you bring proof of insurance with you - a minimum of 3 years history. Your insurance rates will be the same as a 16 year old male if you don't provide proof that you are insurable. (Home and auto....I can't remember if we needed proof of health insurance when we immigrated). Where are you coming from?

When we came from Canada 10 years ago we were able to get credit cards with no problem, and since we didn't carry a balance it didn't matter what the interest rate was. The car loan will have an insane interest rate. Expect a 20%+ interest rate depending on the car. Your best scenario is to by a cheap used car and get the lowest possible loan to start to establish your credit history.

Before resigning yourself to that fate, though, go to a bank or credit union and see if they can offer you a car loan. If you can get a loan through them, the rates will be much better than the dealer. But because the rates are better, you may be turned down, too.

[Maria66]

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[syborg]

show your home country's bank statements or assets...that with your offer letter should suffice.