How do I build credit in the USA as a new immigrant with no credit history?

Building credit in the US as a new immigrant is one of the most important financial steps you'll take. Without credit history, you'll struggle to rent apartments, get car loans, or even open certain bank accounts. Here's a comprehensive guide:

Why You Start at Zero:

Your credit history from your home country does not transfer to the US. Even if you had excellent credit abroad, you start as "credit invisible" - no credit score at all (not even a bad one).

Step-by-Step Credit Building:

1. Get a Social Security Number (SSN) or ITIN

• SSN: Required for most credit products. Apply at Social Security Administration once you have work authorization.
• ITIN: If you can't get an SSN, an Individual Taxpayer Identification Number works for some credit cards.

2. Open a Bank Account

• Start with a checking account at a major bank (Chase, Bank of America, Wells Fargo, Capital One)
• Credit unions are often more immigrant-friendly
• This establishes a banking relationship for future credit products

3. Get a Secured Credit Card

• Best first credit card option for immigrants
• You deposit $200-500 which becomes your credit limit
• Recommended cards: Discover it® Secured, Capital One Secured, Chime Credit Builder
• Use 10-30% of limit, pay in full monthly
• After 6-12 months, you may qualify for unsecured cards

4. Consider a Credit-Builder Loan

• Banks like Self or credit unions offer these
• You "borrow" $300-1,000 held in savings
• Make monthly payments, get money when paid off
• Builds payment history without risk

5. Become an Authorized User

• If you have a trusted friend/family member with good credit
• Their account history appears on your report
• You don't even need to use the card
• Can immediately boost your score

6. Use Experian Boost

• Free service that adds rent, utilities, streaming services to your Experian report
• Can add 10-20 points immediately
• Requires linking your bank account

Timeline Expectations:

• 3-6 months: First credit score appears (often 650-680 range with good behavior)
• 6-12 months: Can qualify for basic unsecured cards
• 1-2 years: Can build to 700+ with responsible use
• 2+ years: Good enough for mortgages, best rates

Credit Score Factors:

Special Options for Some Countries:

Nova Credit can transfer credit history from: Australia, Brazil, Canada, India, Mexico, Nigeria, South Korea, UK. Check if you qualify for their Credit Passport program with partner lenders.

Common Mistakes to Avoid:

• Don't apply for multiple cards at once (hurts score)
• Don't max out your credit limit
• Don't close your first card once you get better ones
• Don't miss payments (even by a day)
• Don't carry balances thinking it helps (it doesn't)

Your credit score will follow you throughout your time in the US - invest time in building it right from the start.