You can build credit as a newcomer in the US even with no credit history, by opening a starter credit account that reports to the credit bureaus and paying it on time every month.
Quick answer
Credit in the US does not transfer from your home country, so most newcomers start from zero. The fastest way to begin is a starter account you can actually get approved for, usually a secured credit card, used responsibly and paid on time. Your score is built mostly on payment history and how much of your available credit you use. A first score typically appears after about 6 months, and a strong score builds over a few years.
What you need to know
- A credit score is a number from 300 to 850 that tells lenders how reliable you are likely to be. Higher is better.
- Credit does not carry over from another country, so you start fresh when you arrive.
- No credit score is not the same as a good one. To lenders, no history often reads as a risk.
- Payment history and credit use are the two biggest parts of your score.
- A first FICO score usually appears after about 6 months of reported activity.
- Any method builds credit only if it reports to the bureaus, so confirm that before you rely on it.
What affects your credit score
The most common scoring system in the US is FICO, and it weighs five things.
| Factor | Weight | What it means |
|---|---|---|
| Payment history | 35% | Paying on time, the single biggest factor |
| Amounts owed | 30% | How much of your available credit you are using |
| Length of credit history | 15% | How long your accounts have been open |
| New credit | 10% | Recent applications and newly opened accounts |
| Credit mix | 10% | The range of credit types you manage |
The US is not the only country with credit scores, but it is the one that uses FICO. Many countries track creditworthiness differently, which is why your record abroad does not follow you here.
7 ways to build credit as a newcomer
- Open a starter credit card. Secured cards (which use a refundable deposit as your limit), student cards, and store cards are the easiest to get with little or no history. If you do not have a Social Security number, see the card paths below.
- Become an authorized user. A trusted relative can add you to their card, so their on-time history can help yours. The main cardholder stays responsible for payments.
- Find a co-signer. Someone with good credit who co-signs takes responsibility if you cannot pay, which can improve your approval odds.
- Try a credit-builder loan. The lender holds the loan amount in savings while you make payments, and those payments are reported.
- Report rent and utility payments. Rent-reporting services can add your rent to your credit file. Experian Boost can add eligible phone, utility, and similar payments, but only to your Experian file.
- Pay on time and keep balances low. On-time payments are the biggest factor, and keeping your balance below 30% of your limit helps, with lower being better.
- Protect yourself from identity theft. Review your statements monthly and guard your SSN or ITIN, since people new to credit are common targets.
How long it takes
A first FICO score usually appears after about 6 months, once you have an account reported for that long. A VantageScore can appear sooner, sometimes within a month, though most lenders still rely on FICO. Building a strong score takes longer, often a few years of steady, on-time history.
The benefits of a good credit score
A good score is generally 690 or higher. It makes approval for cards and loans more likely, and it usually earns you lower interest rates. It can also make renting an apartment easier and, in some cases, lead to better terms on insurance or utilities. A strong score is most valuable when you make a big purchase, such as a car or a home.
Common mistakes to avoid
- Closing your oldest card, which shortens your credit history
- Paying only the minimum, which lets interest build
- Applying for several cards at once, which adds inquiries
- Ignoring your reports. You can request your credit reports at no cost from AnnualCreditReport.com
No SSN, or brand new to the US?
You do not need a Social Security number to start. Many newcomers build credit with an ITIN, and secured cards have the highest approval odds. For the full path, see Can I get a credit card without an SSN? and Can I get a credit card with an ITIN?.
Already have a low score?
This guide is for building credit from scratch. If you already have a score and it is low, the steps are different, focused on repair rather than starting out. See What if I have a bad credit score?.
How MAJORITY can help
MAJORITY offers the MAJORITY Visa® Secured Credit Card, a secured card designed to help you build credit when used responsibly. Qualification is based on eligibility requirements and a security interest rather than your prior credit history. You can learn more at majority.com.
Frequently asked questions
How do I start building credit as a new immigrant?
Open a starter account you can get approved for, usually a secured credit card, and pay it on time every month. Confirm it reports to the bureaus so your history is recorded.
Does my credit history from my home country transfer to the US?
No. US credit does not carry over from another country, so you start fresh. Some lenders may consider an international credit report when you apply.
How long does it take to get a credit score?
A first FICO score usually appears after about 6 months of reported activity. A strong score takes a few years of on-time history to build.
What is the most important factor in my score?
Payment history, at about 35% of a FICO score. Paying on time every month is the most powerful habit.
Do I need a Social Security number to build credit?
No. You can build credit with an ITIN, and secured cards have the highest approval odds when you have no US history.
Disclosures
The MAJORITY Visa® Secured Credit Card is issued by WebBank, a member of the FDIC, pursuant to a license from Visa U.S.A. Inc.
Qualification for the MAJORITY Visa® Secured Credit Card is based on meeting eligibility requirements, including income and expense requirements, having a Majority account in good standing, and establishment of a security interest. Criteria are subject to change.
Since your credit history is reported to major credit bureaus, it can help build/rebuild your credit if used responsibly. Other factors, such as late payments or delinquencies with your other accounts or loans, may adversely impact your credit. There is no guarantee regarding any impact on your credit score.
The MAJORITY app facilitates banking services through Axiom Bank, N.A. ("Axiom"), Member FDIC. The funds deposited in the account held at Axiom, Member FDIC, are FDIC-insured on a pass-through basis up to $250,000 per depositor in the event Axiom fails and subject to the satisfaction of certain conditions.