Korean Job Discussion Forums

[Trevor]

One issue that has come to mind lately.

[IAMAROBOT]

you haven't been paying off student loans? that goes into your credit history.

[newteacher]

[T-J]

Get a U.S. credit card through your Stateside address and use it RESPONSIBLY

[mekku]

[koldijk]

credit history?

maybe a blank slate is better than the alternative...

ah... to be an American!!!

[Snowkr]

Having no credit history back home was a big problem for me about 6 years ago. I lived in Australia for 3 years and then moved home after graduation from uni. Every credit application I put in was denied for months. I also had problems getting a loan for a car.

Fortunately my dad knew someone who managed a bank and eventually I was approved for a Kmart visa card with a $100 limit. It wasn't much but it was a start. I built credit from there.

I'll never forget how frustrating it was for the first 6 months after I moved back to the states. You definitely should apply for a credit card stateside and use it responsibly.

[fusionbarnone]

[Louie]

When I returned to the US 2 years ago, I had absolutely no credit whatsoever.
In the past year though I have gotten 4 credit cards and I am using them for small purchases and then paying them off little by little to build my credit. It is going to take time to do, but these days, with the economy the way it is, it is best not to go way out on purchases for the fear of losing control of your credit.
I'd get a credit card in your name the next time you are home for an extended period of time. Then when you return to Korea, you can set up an arrangement with your Korean bank where you can transfer money to the bank where the card was issued. The more you use it (buy small, pay on time), the better your chances are to build your credit score while in Korea.
Just make sure to tell the credit card company that you intend to use it in Korea or else they might freeze it upon getting a report that it was used there.
The biggest problem is that alot of people splurge while on vacation to the point that they lose control of their payments.
Don't let that happen to you, be responsible.

[sojourner1]

You probably can get a secured card to establish credit, but I personally refused to pay hundreds of dollars for a secured $300 credit card. These bad cards for the young and poor cost $200 to $300 a year in fees just to hold which are absurd offers I destroyed each time. As poor as I was through the years, I was not in the position to pay the rich $300 a year while I already didn't have enough to live on. I bought everything I ever had, except college, on cash and what I couldn't buy, I did without to many disadvantages. I seriously thought that was the smartest and only way to go.

The big concern with credit is how it effects our employment, insurance costs, and apartment rental prospects which are dependent on having good credit with all 3 of the major reporting bureaus, Trans Union, Equifax, and Experion. This a very bad time to be looking to establish credit due to the economy unless you already have a great score in which you only need to responsibly service your debt as you probably had done all along.

Any decent job above and beyond retail sales, customer service, telemarketer, and janitor will require a credit check. And if you want to work for Uncle Sam, you can't, because to get a security clearance, you need a good consumer credit score. It really is a dumb system that favors the rich and those put through college on a silver spoon and does NOT promote meritocracy nor reward many doing their best in doing the right things in life nor allow many to lift their boats from rags to a reasonable middle class standard of living.

While, they're using this flawed system the computers now run to judge our character, it really is a faulty gauge, because little or no history blocks you from opportunities while student loans only hurt you such as if you're one day late on a payment and do not report when you pay on time; only when you fully pay it off. Student loan debt is counted as debt load when calculating your credit handling ability vs. income so it's a huge negative hit to borrow $20,000 or more for a degree and you end up only making $18,000 to $28,000 a year. It only takes one tiny mistake here and there such as being late or unemployed. You won't ever have stable employment history or + NPV with this deck of cards stacked against you, because you first need career opportunity in order to have the money pay this turkey off and have access to credit.

If you think about it, when the government Direct Loans agency reports a payment late and reports the amount of debt, they are ensuring you will never be able to pay that loan back as your employment prospects highly depend on credit history and score. If you can get ahead of the 8 ball by earning a professional income and pay it off, then you can shine in Americas sham of a credit system and education initiative. The college education initiative they sold us is a big trap, but of course, those old people didn't grow up in the screwed up computerized economy that we're living. They were offered good practical jobs upon graduation where humans made all decisions based on merit and it was reasonable to believe taking out student loan debt to earn a degree could only be good.

The system works best in your advantage if you piggy back on your parents good credit while you're young and all the way through college and then run credit cards and auto loans in your own name during college that are always paid in full on time each month. If you didn't have this or got irresponsible then your SOL. It really is competitive out there and without a shiny credit record, you will just have many problems and little chance to succeed regardless of education, skills, abilities, knowledge, and other qualities.

I personally, was unfortunate, I got the opposite of having a silver spoon. My credit was ruined while I was a teen by my parents and older siblings. I was lucky that got charged off while I was in the army, but I never was able to succeed in getting a credit card, car loan, decent employment, and decent insurance rates while being decline employment often nor a chance at building credit. Back then, creditors didn't look at age, they only verified identity through Social Security Administration that the applicant is a real person. The only reporting I have is being late a dozen or more times on student loan payments due to poverty, spotty employment history, high student loan debt, and many addresses which set me at a FICO score of only 400; not enough to be employable nor rent apartments who check upon application. I understand, today they have a law stating that those under 18 are not liable for debts taken out in their name so the creditors are verifying age now where kids credit deck of cards can't be stacked against them.

[cedarseoul]

My wife and I use our American credit cards occasionally for just this reason - to build and maintain our credit. A couple of years ago, I couldn't qualify for more than a $500 charge at a department store. Now, I have several cards with $10K+ limits, 0-5% APR, and lots of perks (we recently stayed at the Park Hyatt and a couple of Westins for free). We don't carry any credit card debt; we just pay 'em off each month. With the weak exchange rate against the US dollar, it's fun to pay KRW100,000 for dinner and have it show up as, what, $65 on my American Express?

[Trevor]

I can apply for a card, but right now I have no stateside job or address. I'm an orphan so no family address either. Why would they give me a card?

I do have a U.S. bank account, though, with less than $10,000 in it.
I have heard of these crappy expensive credit cards I can get that only let you spend what you put into it. Has anybody ever done that? Is it worth it?

[Trevor]

Besides getting a credit card, how does someone living abroad establish credit? I have no student loans.

[MA_TESOL]

Last time I checked my rating was about 780 and I have not lived in the States in about 7 years. I have a student loan and pay it each month, as well as 2 credit cards that I occassionally use and always pay on time. I have no mortage, nor do I own property