5 Tips For Building Your Credit Score
The United States is considered a country of opportunity, but there is a big hurdle for newbies: credit history building. Many citizens quickly find out that they cannot easily rent an apartment, get a credit card, or buy a car because they have no credit history.
In the US, everyone who is considering lending you a loan, from cell phone providers to banks that issue credit cards and issue car loans, will check your credit score. We may give you 5 credit building tips that may help you obtain credit score necessary to get a loan fast.
You don’t need a social security number to have a credit history, but it does help identify your credit file. If you are new to the country and the lender is trying to get your loan file out, it just doesn’t exist. It is only when you apply and get a loan and the lender starts providing your account information that you get a loan file with each of the three major US credit bureaus – Equifax, Experian and TransUnion. These files show you what accounts you have, how much you owe and whether you pay your bills on time.
When you decide if you want to pay off a loan, lenders use both the details on your credit reports and its distilled product, a credit score. You receive a FICO account, which is one of the primary credit scores used by US lenders, after you have opened and actively used an account for 6 months. The FICO score can range from an awful 300 to a perfect 850.
Be careful in building a US loan. It takes time to go from nothing to good credit, and these 5 tips can help speed things up. We will answer you on how to build credit score necessary to get a loan.
5 credit score tips
#1: You can start by participating in a credit union or local bank and apply for a secured credit card — one that is supported by funds you already have in your account. A secured credit card is issued against a security equal to the amount of the provided credit limit and which is returned back to the owner upon payment of the full balance on the card. Here are the main banks that offer secured credit cards:
- Bank of America;
- Capital One;
- Citi; Discover;
- USAA (Visa and Amex);
- U.S. Bank;
- Wells Fargo.
A number of smaller banks and credit unions also offer secured credit cards. These include Capital Bank, First Progress, and Green Dot. The main banks that do not provide secure cards are American Express, Barclaycard, Chase, PNC, and Synchrony Bank.
#2: Make the payment automatic. Set up automatic payments through your bank so that all your bills, from utilities to loans, are paid on time. Most banks provide a free bill payment service.
#3: Rely on your spouse. If your spouse has good credit, you can become an authorized user on your spouse’s credit card or apply for a joint loan. Your spouse can call and order a credit card in your name.
#4: Use a current credit card if you can. If you have a credit card in your country from an international issuer, you can call the financial institution and get their approval to issue you a US credit card based on your past relationship. For example, if you have a bank account that operates in the United States, then it is worth trying to get your first credit card there.
#5: Consider an alternative loan. Social lending is an option for immigrants building credit, although it is not available to everyone. The Mission Asset Fund works with non-profit organizations in eleven states. Its goal is to connect all clients within credit associations and then inform the credit bureau of this, what option improves the rating of these people.
Tags: credit score, rating