How to Build Credit as a New Immigrant

New immigrants to the U.S. are often surprised to learn that their credit history doesn’t follow them to their new country. This is a great chance to start over if your credit history is less than stellar. For those who have had a spotless credit history for years, though, it can be a hard pill to swallow. The good news is that with time, you will be able to build a new credit history. Here are some ways to get started.

Instructions

Difficulty: Moderate

1. Secured credit cards are a great place to start. You pay a deposit and the card company provides you with credit equal to that amount.
2. Utility companies typically don't report to a credit bureau, but having a utility or two in your name can help you get credit elsewhere. A deposit will be required to secure the account.
3. If your spouse has a good credit history, add your name to their credit cards. Be sure you’re added as a named co-borrower rather than just a cardholder or you won’t be building up history.
4. Some department stores extend credit to those with no history.
5. Ask someone co-sign a loan for you, or take out a secured loan and pay it right back.
6. Find a job and stick with it. Creditors like to see stability.
7. Above all, be sure not to overextend yourself and always pay on time.

Tips & Warnings

• It takes time to build credit. Unsolicited credit offers may start to appear 8-12 months once you get started and you may need a few years of history before being considered for big ticket items such as a mortgage.
• Applications for credit show up on your credit report so be selective and apply for one or two things every few months.