How to Apply for a Credit Card When New to the USA

Applying for credit cards if you're new to the country is difficult.

Applying for credit cards and being approved can be difficult if you have established credit, but if you are new to the country and have no credit, it seems nearly impossible. Most credit card companies want to see some record of established credit; however, this isn't possible if you're new to the country. You can still apply and be approved for credit cards, though. There are credit cards with guidelines less strict than the traditional credit card and some aimed at people with little to no credit history.

Instructions

1. Open an account and apply for a credit union credit card. Credit unions traditionally have more relaxed terms regarding credit cards.

2. Apply for secured credit. Open a savings account and deposit $100 to $300 as security for a secured credit card. The card is linked directly to your savings, and the money deposited serves as collateral should you not pay the credit card bill. You cannot charge more than what you deposited for collateral.

3. Apply for a retail credit card. Retailer credit cards are traditionally easier to be approved for, because they use finance companies rather than banks to deal with transactions.

Tips & Warnings

• Do not acquire more than one or two cards at one time, especially while starting out to build credit. You want to be extremely careful and control your credit when starting out, so build it slowly.

• Pay your bills on time. Not meeting the minimum monthly payment at the very least will drastically lower your credit score, making it even more difficult to apply for credit in the future.

References

• Money Central: 9 ways to build your credit from scratch
• Bankrate: How to build credit for the first time
• County of Los Angeles: Establishing Credit