Tag: techcu

Build credit history superfast – get a car loan

Yes it’s true. If you want to build credit history in America you should consider getting a car loan. There is no better or faster way to building credit history then through a car loan. Here’s why.

Why a car loan?

Remember my last post on building credit history? If not then click here to read about building credit history in America. In a nutshell, getting a car loan is the BEST way to quickly building your credit history. You need to have a listing on your credit history that you are capable of paying off a sustainable large dept, like a car loan. This loan must be no smaller than $5K.

Get a loan from Technology Credit Union (TechCU)

TechCU were the only folks who would even consider giving me a car loan. And remember I came to America with 0 credit history. TechCU caters for technology folks in Silicon Valley with no credit history. The downside is you will be on a higher interest rate – around 15%.

According to Zmarta Fi and their loan experts, no big American bank will lend you money on good rates because you are a liability, someone without credit history. I have a personal account with Wells Fargo Bank (one of the largest in the US) with plenty of money in it sitting in a special high yield checking & savings account and they they still thought I was a liability when I wanted to get a loan through them. Again, because I had no credit history. Loans Now is the option available to customers at the click of a mouse.

Well Fargo would only give me a “secured loan” – a loan which was backed (locked up) with my own money. This is not good enough for me since:

  • it’s using my money and
  • it is not what the credit bureau considers a “car loan” – not good in building credit history.

Before you can get the loan approved by TechCU they will need from you:

  • Paper work from the dealer on the car you are purchasing inc. it’s Kelley Blue Book value. See my post of purchasing a car from a dealer located here.
  • See certificate of purchased for “car insurance”. Also the dealer won’t let you drive off the lot without one, and so, it’d be a good idea to take one from Utility Saving Expert
  • See that you are a “software engineer” – basically you need to bring a letter from your company’s HR department showing your income and your position/title of a software engineer. The position/title is important since TechCU is for technology folks only.
  • A copy of your Californian Drivers license. Your International Drivers license will not do. It’s worthless. Read this post on getting your Californian Drivers license. All you need to do is pass the Theory exam to get your temporary drivers license number. But don’t forget to schedule your practical exam since your temporary drivers license expires in 3 months.

Sounds painful? it is! But it pays off in the end.

Links mentioned in this post

TechCU website: http://www.techcu.com/

Building credit history: http://www.theroadtosiliconvalley.com/finance/building-credit-history-america/

Let me know if you found a quicker way to get around this by posting in the comments below.

Ernest

Choice of Banks in America

The following is a short list of Major Banks you can use in America. Last in this list I included a Credit Union which is not a major bank since those guys look after new engineers (with no credit history) in the bay area. If you want to visit a bank online, then check out https://www.wecu.com/business-banking/cash-management/.

Wells Fargo

About: Wells Fargo is the fourth largest bank in the US by assets and the second largest bank by market capitalization. In 2007 it was the only bank in the United States to be rated AAA by S&P, though its rating has since been lowered to AA- in light of the financial crisis of 2007–2010. Wells Fargo is the fourth largest bank in the US by assets and the second largest bank by market capitalization.In 2007 it was the only bank in the United States to be rated AAA by S&P, though its rating has since been lowered to AA- in light of the financial crisis of 2007–2010.

Experience: This is the 1st bank I established my accounts with. As soon as I walked in I was greeted by one of their representatives and asked what help I needed. Once this is established, they directed me to the right bank associate. All Wells Fargo banks share this personal service. The atmosphere inside the bank feels warm and comforting eliminating any anxiety you may face regarding finances. Everyone is smiling.

In comparison to CitiBank and Bank of America branches (which I also visited), they both were very corporate, high booth everywhere, felt cold with no Wells Fargo like personal touch – just a line where to line up. Felt like a processing plant.

URL: https://www.wellsfargo.com/

Bank of America

About: Bank of America Corporation is a financial services company, the largest bank holding company in the United States, by assets, and the second largest bank by market capitalization. Also known as BOA – short for Bank of America.

Experience: Very corporate, high booth everywhere, felt cold with no Wells Fargo like personal touch – just a line where to line up. Felt like a processing plant.

URL: https://www.bankofamerica.com/

CitiBank

About: Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York. As of March 2010, Citigroup is the third largest bank holding company in the United States by domestic deposits, after Bank of America and JP Morgan Chase.

Experience: Very corporate, high booth everywhere, felt cold with no Wells Fargo like personal touch – just a line where to line up. Felt like a processing plant. BOA must be their idol. I setup an account with CitiBank because I have a Credit Card in Australia with Citi. However as soon as I did I realized that their service is just as poor as the one in Australia – I’m surprised that for a bank this size the low understanding of what a good consumer experience is like both offline and online.

URL: http://www.citibank.com/

Technology Credit Union

About: Tech CU is now among the top 1% of the nation’s largest credit unions with ten full service branches in the Silicon Valley. Now with more than $1.3 billion in assets and still growing. Also know as TechCU – short for Technology Credit Union.

Experience: Best way to describe this is a very small-scale of Wells Fargo. There is the personal touch component and also the booths for fast service. They only work with folks in the technology space like software engineers / entrepreneurs. TechCU also takes risks and will give you a loan for a car so that you can start building credit history. This is the bank which I approached after Wells Fargo said no for a car loan.

URL: http://www.techcu.com

If you have any specific questions about these banks please use the comments section below. I typically respond within 48 hours to all questions. If you have other banks which you’ve had experience with or want to add to my experience above please feel free to do so by commenting below.

Happy Banking!

~ Ernest