• Home
  • About
  • Advertise
  • Contact
  • Policy
  • Guest Post
  • Archive

One Cent At A Time

A Personal finance blog to get rich

  • Email
  • Facebook
  • Pinterest
  • RSS
  • Twitter
  • Beautiful Life
  • Becoming Rich
  • Beginners Guide
  • Extra Income
  • Productivity
  • Saving Money

Tips on How Immigrants Can Establish a Credit History

December 3, 2020 Leave a Comment

Share this:

  • Tweet
  • Email

The United States of America is a land of vast opportunities. With each dawning day, many individuals travel to America to make their dreams a reality. However, it’s quite unfortunate that these USA immigrants face a challenging financial situation.

4 Tips on How Immigrants Can Establish a Credit History

It’s often a result of a lack of credit history. It becomes hard to build an identity in a country where they want to meet their goals. It’s why building a credible credit history is essential for setting up a life in the USA.

You need to understand how credit system works in the USA

But first, what is credit? Simply put, credit refers to the borrowing capacity you have. It’s a summary of your financial behavior and decisions. There are many times when your credit score can either make or break certain important financial transactions. 

Having a good credit history allows you to get loans and other forms of credit easily. If you have good credit, lenders often consider you to be less of a risk, as you would be able to pay back the loan more quickly and on time. On the flip side, if you have poor credit, you may get fewer options. But having zero credit history is bad for you, too.

As such, you must do what you can to build your credit score, especially if you want to gain access to other financial products like car loans or home mortgages. There are several companies that specialize in helping people establish their credit scores, or can give you advice on how to improve your overall credit profile.

A vast majority of your history depends on your ability to repay your loans. So, naturally, you need to loan out to prove that you can pay off loans.

So you need to take out loans first. The based way is to get a secured credit card in your name or becoming an additional user on somebody else’s credit card.

Here are tips for establishing a credit history without the use of a credit card.

Acquire a secured credit card 

Every new immigrant faces the challenge of establishing a credit score. That’s not all. It might be challenging to get a co-signer. However, don’t despair!

You can begin by obtaining a secured credit card. It will enable you to establish a credit history without having to use the traditional credit card.

To get a secured credit card, the lender offers you a credit card immediately you make a specific spending limit.

You ought to deposit in the bank account before getting the credit card. It’s essential as it plays the collateral role as well as a spending limit.

You must note that before getting the credit card, the issuer will verify your income source. When you have a stellar secured credit card, you will be building a good credit score. With time you will acquire a regular credit card.

You ought to inquire and make sure the credit card issuer reports the payment to credit bureaus.

Pay the rent on time 

Did you know that late rent payments can tarnish your credit score? You must pay rent on time as the landlords often report the amount to credit bureaus.

You can decide to pay rent via electronic rent services. It’s because they always report rent payments to rent bureaus. Thus, you get to establish your credit history.

Read these statistics to better understand how you can build a good credit history.

Pay bills on time

Your utility bills, medical bills, even the traffic or parking tickets, treat them with urgency and pay them off.

While paying them off doesn’t increase your credit score, but it can crash your history if not paid.

Having a secured credit card alone can start boosting your credit history. Within a year or so all credit related concerns should be gone, provided you paid your credit card bills on time all along.

Acquire a credit builder loan 

Did you know that savings secured installment loans or credit builder loans always aid immigrants in establishing their credit history?

It’s because they make loan arrangements with banking partners. After that, they offer loans to qualified immigrants as well as individuals with legitimate SSNs.

You can take this opportunity to enroll with expert debt relief institutions to repay all your debts fast.

It’s easy to realize the American dream with the right steps at hand. Get credit cards for no credit to start building a credible credit history.

If you want to establish a good credit history, you also need to know what factors go into determining your FICO score.

These factors include your payment history, outstanding debts, number of credit accounts, and whether you have filed bankruptcies in the past.

In the process of building your credit score, you should also make it a habit to check your free credit reports from all three agencies—Experian, Equifax, and TransUnion.

Then, if you’re confused or are concerned about inaccuracies in your report, you should contact the agency immediately to correct it.

Summary

So you should try to build your credit by following these steps

  1. To build credit you need to take a credit, you can do it by a secured credit card, signing up as an additional user as someone else’s credit card. Taking up a credit builder loan
  2. You need to give it a little time; 6 months to 1 year and have to continually payoff your bills – of any kind, every month.
LIKE THIS POST?
I agree to have my personal information transfered to MailChimp ( more information )
Join our community of 8000+ subscribers to increase your net worth and build wealth
We hate spam. Your email address will not be sold or shared with anyone else.

Share this:

  • Tweet
  • Email
The tool that changed the way I manage my personal finance - Personal Capital, The Best Free Personal Finance Tool

Want to start a WordPress blog now? The onecentatatime.com blog is hosted by Siteground Web Hosting. For only $3.95 a month, Siteground can help you set up and host your website/blog quickly and easily.

About the Blogger Hi I am SB, a personal finance enthusiast with a career in software development. I am an immigrant to the USA since 2005, after being born and brought up in India. This 40 something technocrat lives and breathes personal finance whenever he gets time from the day job, job as a husband and a dad

Some links on this page may be affiliate links, if you make a purchase following the links, I may earn a commission. Read affiliate disclosure here
« How to Land Your Dream Job in COVID-19 Chaos
21 Tips To Be Productive And Happy At Work »

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.



Create your own blog in 20 minutes and $20

Personal Capital, a free tool to change your financial health today

I use and suggest Upstart, for your personal loan need

CreditKarma, a free tool to check your credit scorey

I use Coinbase, for my crypto investments

101 Cents at a Time

101 Ways to Earn Extra Money on the Side
201 Frugal and Perfect Birthday Gifts
101 Ways to Save Money Everyday
101 Ways to be Better and Successful at Work
101 Ways to Save Environment and Energy
101 Frugal and Romantic Anniversary Ideas
101 Low-Cost Men's Fashion Ideas
101 Personal Finance Tips
101 Ways to Reuse Household Stuff
101 Things to Do, When Nothing to Do
101 College Graduation Gift Ideas
100 Tips for Ecommerce Startup
101 Ways to Enjoy Indoor During Winter
101 Ways to Beat Procrastination

Popular Posts

Quick Cash - How to make $100 legally, in a day
Living well on less than $15,000 a Year
Top survey sites for side income
What to do when auto repair goes wrong
Where should I invest my money now?
20 Ways to be productive and happy at work
51 Ways to get out of debt
Be a better person in 15 days, 15 ways
Income ideas for retirees and senior citizens
51 side jobs for college students
Urgently need a large amount of money?
Should I buy or should I rent?
Best Personal loan providers
25 Ways to save environment
25 DIY car repairs to save money
How to decorate office cubicle
How to show your wife you care
50 Financial Rules for Success
51 Frugal weekend family activity ideas
Become Rich By Saving 1 Hour Of Daily Wage
How much do I need to save for retirement?
How to negotiate your salary

Follow us on FaceBook

About Author

SB

Blogger by choice and IT manager by profession. Finance is my passion and gardening is my greatest satisfaction. Born in India, settled in US, Husband and a father. I created this blog in 2011 with a vision to help others. Thanks for your patronage. More info on my "about" page.

View all posts


Subscribe

Join our community of 5000+ subscribers to increase net worth and build wealth

Advertisements

Personal Stories

How I got a new HP computer replaced
Was COVID circulating in USA in fall of 2019?
How my credit score went up 800+
Why I didn’t invest in Bitcoins
How I controlled impulses to buy things
Why this blog is named One Cent at a Time

Subscribe via Email

Site Disclaimer

Disclosure of Material Connection: Some of the links in this web site are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
Read full Affiliate disclosure


One Cent at a Time is published by SB. The opinions expressed herein by him are his own and not those of his employer or anyone else. All content on One Cent at a Time is for entertainment purposes only. By reading this blog, you agree that SB and/or One Cent at a Time is not responsible for any actions taken after reading this blog. For the full disclaimer, click here .

Major Media Mention

One Cent at a Time Media Appearances

Copyright © 2023 One Cent At A Time · Designed by Nuts and Bolts Media