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DV 2015 KENYA SELECTEES FORUM

Hi @usken go , I think your financial ideas are great. You are very responsible and I hope your countrymen follow your advice.

However I lived in the USA previously, and having a credit history is a key part of establishing yourself. Just like getting a social number, bank account or drivers license, you also need a credit history. You should do this as soon as possible. From renting, getting a contract phone, getting a job or buying a house, credit history is used way beyond its original intention.

My advice for someone who doesn't like debt is to get a couple of small limit, no annual fee credit cards and "sock drawer" them. Use them once a year to buy a pack of gum.
 
If you ever come across a car with a 'debit till old age' slogan, say hi.
I will be looking around for a few brave ones to join the club.

I still insist that everybody overlooked one observation I made - many upper middle class guys I met, some known to me for over a decade, have clawed their way to that status without ever borrowing a coin, not even at a gas station, it was all debit cards.

Very sound advice though and well appreciated. I am wondering how the credit card guys make money if you have a no annual fee, no interest on payments and little money transactions card.
 
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usken go said:
. I am wondering how the credit card guys make money if you have a no annual fee, no interest on payments and little money transactions card.
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Not everyone owning a Credit card manages to settle their dues in time. This is where the credit card issuers milk their worth...
 
o
LazyDoggie said:
Not everyone owning a Credit card manages to settle their dues in time. This is where the credit card issuers milk their worth...
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Or maybe through some wicked clauses hidden in fine print somewhere in the lengthy terms and conditions, disclaimers etc... very slippery guys, harder to catch than an eel.
 
usken go said:
If you ever come across a car with a 'debit till old age' slogan, say hi.
I will be looking around for a few brave ones to join the club.

I still insist that everybody overlooked one observation I made - many upper middle class guys I met, some known to me for over a decade, have clawed their way to that status without ever borrowing a coin, not even at a gas station, it was all debit cards.

Very sound advice though and well appreciated. I am wondering how the credit card guys make money if you have a no annual fee, no interest on payments and little money transactions card.
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Usken, your key words are "some". Some landlords don't need it, some etc etc etc. it is dangerous to tell everyone they don't need it based on "some".

Of course, the cc companies make a fortune off the guys who don't have discipline. Tell me, if someone is so smart to make it as you say, they must have discipline somewhere. So have discipline in only charging what you can afford to the card. I'm using the Chase freedom card, go look it up and look at the terms. If you pay off in full every month, you don't pay a cent. Plus you get 1% cash back on all purchases and 5% from certain stores, that changes every quarter (needless to say I did really well when they did 5% cash back on all supermarket spending). It's when you don't pay off, or use your card for cash advances etc that you pay. Tell me usken, you're a smart guy who wouldn't go into debt. Explain why it makes sense to not use a card that is convenient, gives you buyer protection, doesn't cost you anything, builds a useful credit record, AND gives you cash back. I just don't see why you would go a less optimal route. The only place a debit card matches that is not carrying cash. There is no buyer protection and no cash back on debit cards. And obviously no credit record. Of course if you are worried the idea is too tempting and you might go into debt, sure avoid it, but you don't sound like that kind of guy.
 
usken go said:
o

Or maybe through some wicked clauses hidden in fine print somewhere in the lengthy terms and conditions, disclaimers etc... very slippery guys, harder to catch than an eel.
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The terms are available. Go read them. Talking about "very slippery guys" when it is clear where you do and don't pay just isn't a valid answer! Sorry! They are not even that lengthy and the print is not too fine! If you pay off every month you pay nothing. That is all the fine print you need. You can't talk about wicked clauses when you haven't bothered to look and see what's there!
 
Also, usken, are you saving up to buy a house or do you plan to make landlords rich for the rest of your life???? No credit record, no mortgage. Fine for those who can buy a house for cash, but that's not most people. Rent is just paying off someone else's mortgage rather than your own...
 
Usken go. Trust me on this. Listen to SusieQQQ - she is giving you sound advice, with no small print. You will realise that one day, but sooner would be better if you want to secure a decent future in the USA. Stay thrifty by all means. Be debt free, absolutely, but don't make the mistake you think is a good idea.
 
Parable:
2 brothers each earning the same amount of money
One rents, one buys a home using a mortgage for the same amount as the rental (will probably be a smaller home) at fixed rate as you get in the U.S.
7 years later first brother still paying rent and paying increases every year
Second brother has (as is average) paid off his mortgage early and now owns his home outright
First brother continues paying higher rent every year
Second brother now has extra cash flow after mortgage paid off. After a little treat he stays as disciplined as before and invests it (another property, mutual funds, whatever)
After 20 years the first brother is still paying rent that increases every year
After 20 years the second brother has clear title to a property or two as well as a nice investment portfolio (which also gives him income). Better off financially in the present time and also something nice to leave to his kids.

The above parable was (more or less) told to me many years ago by one of my first bosses, in response to my proclaiming that debt is bad, full stop. His lesson was that judicious use of debt - not to live beyond your means, but to get a foot on the property ladder, which is always the first step to building assets - makes sense.

And with that I now bow out of the conversation :)
 
SusieQQQ said:
Also, usken, are you saving up to buy a house or do you plan to make landlords rich for the rest of your life???? No credit record, no mortgage. Fine for those who can buy a house for cash, but that's not most people. Rent is just paying off someone else's mortgage rather than your own...
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Rent to buy option which is the way to own rent-mortgage situation. Certainly not a one off purchase !!
 
usken go said:
Rent to buy option which is the way to own rent-mortgage situation. Certainly not a one off purchase !!
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I never thought going into debt with the objective to "improve the credit score" was a particularly smart way of managing ones finances. A credit score only becomes relevant if one plans to go into debt - congratulations to your intention to stay out of it, if you can. If you are interested in the topic, you might want to review some of the respective advice on http://www.daveramsey.com Good luck to you!
PS: you might want to be careful with some of the "Rent to Buy Options" - some of them might work out for you, others clearly are a scam.
 
OK team. Tons of gratitude. I am going to try one small and secured credit card, probably put a standing pay- on first -demand condition in the bank. I know a credit/debt environment whereby bankers change the terms without consulting you at all. This has ruined many hardworking and financially disciplines people.
 
usken go said:
OK team. Tons of gratitude. I am going to try one small and secured credit card, probably put a standing pay- on first -demand condition in the bank. I know a credit/debt environment whereby bankers change the terms without consulting you at all. This has ruined many hardworking and financially disciplines people.
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Very good insight - welcome to the life in the U S of A!
 
Hi Guys, activating this weekend. I went against the grain and did 2 things:-
1. I will travel with my husband not before/after him because well... I can't live without him and honestly being alone with the 3 year old in the Embassy was hard. This is a 30+ hour trip. Will let you know if they deport us because if he goes I go with him. haha. We will activate our cards in Abu Dhabi at the US Clearance and head for Washington, DC.
2. We will then travel back to Kenya after a week. Cards will go to a family friend.
My question is, is there an office I can go to in DC where we can ask them to consider a TB waiver of some sort for my husband? He doesn't have TB, but his sputum results wont be out till 10/19 so even if we go by the understanding that he has TB there has to be a waiver. Can we do like an AOS in 10 days? (No, Right?) Looking for advice at 1.20 am our time. Pregnancy does that to you. You cannot sleep.
 
EURO2014 said:
I never thought going into debt with the objective to "improve the credit score" was a particularly smart way of managing ones finances. A credit score only becomes relevant if one plans to go into debt - congratulations to your intention to stay out of it, if you can. If you are interested in the topic, you might want to review some of the respective advice on http://www.daveramsey.com Good luck to you!
PS: you might want to be careful with some of the "Rent to Buy Options" - some of them might work out for you, others clearly are a scam.
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1. Being "in debt" and having "available credit" are two different things.
2. A credit score can affect the cost of insurance, the ability to rent certain properties, your attractiveness to certain types of investment and so on. It will affect the cost of getting "good debt" which is things like a mortgage. So - you ABSOLUTELY can save money (big money potentially) by improving your credit score.
3. Have you ever heard that money makes money. That is true - having money opens doors to opportunities so that your money can multiply. Having your own money in the bank is essential - but as one gets more conversant with money matters, one realizes that having available credit opens opportunity doors in the same way that having cash at the bank does.
4. One last thing. Uskens comment of the banks changing the rules etc. That only happens at the lower end of the "financial sophistication" scale. At the other end of the scale they know darn well they will lose the customers they care about. I have "available credit" - but I am not "in debt" - so if a bank or anyone else changes their terms to something ion a way I don't like - I complain and if that doesn't get it resolved, I walk.
 
usamommy2015 said:
Hi Guys, activating this weekend. I went against the grain and did 2 things:-
1. I will travel with my husband not before/after him because well... I can't live without him and honestly being alone with the 3 year old in the Embassy was hard. This is a 30+ hour trip. Will let you know if they deport us because if he goes I go with him. haha. We will activate our cards in Abu Dhabi at the US Clearance and head for Washington, DC.
2. We will then travel back to Kenya after a week. Cards will go to a family friend.
My question is, is there an office I can go to in DC where we can ask them to consider a TB waiver of some sort for my husband? He doesn't have TB, but his sputum results wont be out till 10/19 so even if we go by the understanding that he has TB there has to be a waiver. Can we do like an AOS in 10 days? (No, Right?) Looking for advice at 1.20 am our time. Pregnancy does that to you. You cannot sleep.
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Do have a safe trip.
1. Wish you the best with that, I truly hope you guys succeed in clearing immigration together.
2. Regarding a TB waiver, yes there's a process for filing one. It's a long process, which requires him to have attended an interview and be found inadmissible to start with. There's no such thing as walking into an office and requesting a waiver there and then. And no, absolutely no way of completing AOS in 10 tens. Plus even if time wasn't an issue, entering the U.S. on a NIV with the mind of adjusting status is considered a fraudulent intent which will lead to a denial.
 
Sm1smom said:
Do have a safe trip.
1. Wish you the best with that, I truly hope you guys succeed in clearing immigration together.
2. Regarding a TB waiver, yes there's a process for filing one. It's a long process, which requires him to have attended an interview and be found inadmissible to start with. There's no such thing as walking into an office and requesting a waiver there and then. And no, absolutely no way of completing AOS in 10 tens. Plus even if time wasn't an issue, entering the U.S. on a NIV with the mind of adjusting status is considered a fraudulent intent which will lead to a denial.
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Understood. I'll definitely let you know what happens.
I had my doubts about the TB case as well, but no harm in asking right?
Thanks.
 
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