Upon arriving in America early in 2013, they set out to purchase a car. The dealership promptly denied them credit despite a generous down payment. Even though they could have paid cash for the car, a family member encouraged them to finance the card as interest rate was near 0%. He ended up, much to their chagrin, co-signing on the note in order to clear the hurdle of financing. Although they had been driving for decades, the only insurer to accept them was through the dealership at predatory rates. Then, several weeks after providing coverage, the insurer sent notice of cancellation based, they wrote, on a lack of driving experience.
Several weeks later the couple set out to purchase a house. This was accomplished without too much fuss. Encouraged to establish credit, they found the bank unwilling to extend them any mortgage even though they had just paid nearly $400,000 for the house. Afterward no vender was willing to extend them credit as they shopped furnishing for the house.
Since in a credit-driven society, travel restrictions are imposed when one is unable to make reservations without a credit card. So next they set out to obtain credit cards. Little did they understand that every effort to establish credit results in a negative point with the credit reporting agency. For instance, consider this letter from one credit card company:
Thank you for your recent application for the ... Card from ..... We do value your desire to establish a relationship with us. We regret that we are unable to approve your request.
Reason(s) for Our Decision
Our scoring of your credit and other relevant information (See below)
We evaluated your application using a credit scoring system that considers various pieces of information, including your credit report. The following key factors contributed to our evaluation:
Your FICO score
Too many recent credit checks
Of course they were bewildered by this term FICO. And other similar computerized letters.
If there is a moral to this story, it is that any American person contemplating a return to America should take the time to first re-establish lines of credit.