How to build a good credit history if you have just arrived in the United States

Building a credit history after arriving in the United States should be one of your priorities. At Wells Fargo they point out that “good credit is the key to your financial future in that country.” As a migrant you have to deal with information about the creditworthiness.

The majority explains that the credit score is a number between 300 and 850 that indicates your creditworthiness. “The higher the number, the more likely you are to receive credit from lenders. On the other hand, if you have a low credit score, lenders get an idea of ​​how reliable and punctual you are in paying your debts.”

They note that your credit score is largely based on your complete financial history, the number of loans or lines of credit, payment history, total debt amount, and the percentage of available credit you are currently using.

The FICO score, they indicate, “is the most common scoring system used by most financial institutions.”

A good credit score is typically between 690 and 850. “If you can keep your score in that range, you have a much better chance of getting credit cards and loans when you need them. A good score can be very useful if you want to make a major purchase, such as a car or a house.”

The 21 Day Challenge to Start Saving and Reduce Your Expenses

They contribute from Welss Fargo three ways to build a credit history in the United States:

In the second point they describe:

Wells Fargo points out that “obtaining credit is difficult if you do not have an established credit history. But there are a few ways you can quickly start establishing your credit history:

Have one of your credit cards from your home country reissued in the United States. If the company that issued your card operates here, they may be able to issue a new credit card in the US.

Get a co-signer. If you have a family member with a credit history in this country, you can ask them to be your co-signer on a loan application.

What is a co-signer: An individual who borrows his or her credit to help the primary borrower qualify for credit. The cosigner is responsible for payment if the primary borrower fails to make payments. Applying with a co-signer or co-applicant may help you qualify or obtain better credit terms, but keep in mind that your co-signer or co-applicant is also responsible for payment. This means that your credit history is reflected on both credit reports.

Consider getting a secured credit card or secured loan as you build your credit history.

Please note that with a secured credit account, if you do not pay as agreed, you risk losing your deposit.

Credit history

For LCR Capital Partners, applying for credit products and managing them responsibly is a way to acquire credit history.

They recommend creating a credit history:

They also indicate that once your US credit card is approved, “you can start building your credit history in the United States by managing your account responsibly. This includes paying the card balance in full each period and keeping your credit utilization low.”

Is it advisable to defer your card balance?

How can you quickly create credit history?

To build a quick credit history in the United States, Majority notes, there are several effective strategies:

Pay in time

For the majority, the best thing you can do to improve your credit is to make your payments on time. Once you get a credit card or take out a loan, you need to show lenders that they can trust you. This means that you must pay what you owe on time. And after you get a good credit score, you need to maintain it.

Once you get started, don’t let your credit score drop by forgetting to make payments. In addition, late payments usually entail additional costs.

Maintaining a good credit history goes hand in hand with making payments on time and avoiding excessive debt.

With information from Wells Fargo, Majority and LCT Capital Partners

(JO)