How do I build a credit score in the USA?

Question

I have moved to the USA and I have no credit score. I had 3 credit cards in the UK, all in good standing. Can they be imported (so as to speak) to count towards my credit history in the USA? I cannot do much here with a zero credit score. Hope you guys can be as helpful as always!

Answer 1

It's very difficult to start a credit history when you've come from another country. I moved here from Ireland three years ago and was so frustrated at not being able to get a credit card...Scores cannot be imported ..here's what I recommend.

1) Do not apply for any more credit cards. Every time you apply and are turned down it adversely impacts your credit. The inquiries stay on your report for two years.

2) Look at the names of your credit cards and see if any are affiliated with US banks. If so, write to them and explain.
I had an Irish credit card with MBNA for 6 years in good standing. However, I applied to MBNA USA and was turned down. I wrote to them giving them my Irish credit card number and old statements showing the account was in good standing. I was still denied. I wrote twice more and finally they gave in and gave me a card.
- Once I got and paid that first card...I had a chance to establish my credit and never looked back. I financed a car one year later.

3) If your UK cards are not affiliated with any US banks, try to get a "secured" credit card from your local bank. It's basically a credit card with a low credit limit, that uses your bank account as security. However, if you make all of yor payments and show responsible usage, it can usually be turned into a regular credit card after a year or so. You need to make sure the account can be converted before you open it as most but not all accounts can.
Also, never use more than about 35% of your credit limit on your credit card. Anything over that starts to impact your credit.

4) Do you have any friends with good credit who can add you to their account as an authorized user? If so, their good credit behavior will be imported onto your credit report. Authorized users are not responsible for unpaid bills. Make sure you pick someone who pays their bills because you don't want negative infor on your report...also to ease the person's mind do not actually take the credit card and use it. Just add your name to the account and increase your score.

If you cannot get a credit card at this stage, you should be able to get one after 6-12 months of being an authorized user on an account in good standing.

One more thing...fyi it is a lot easier to get approved for a store card than a credit card. If you can't get a credit card, remain an authorized user on another's accout for a few months a get a macys/ bloomingdales card. It will help you credit even if you don't use it very often.


Hope this helps...be patient and you'll get there.

Answer 2

It takes a while to establish credit but most things mentioned here are true. It really takes about two good years to get a decent credit going if you want to buy a home. Make sure to keep a record of your bills and pay by money order or check rather than cash when you pay utility bills, credit cards and rent. This is your of proof that you made regular payments and you usually need to show that you have a standing checking account balance to get any kind of loan from a bank. Open a zero interest credit card, use it wisely and pay it off in a timely manner. Having a cell phone can help you establish credit too. Its good to have at least four things you can idenitfy for proof that you are paying..ie, cell phone, a major credit card, rent and utility bills are good starters. If you need a vehicle payment, maybe try to pay cash down on some and finance the rest through an American bank.

Answer 3

Hi, I am an Aussie and arrived here 3 months ago - I think the US credit system is flawed, it is a catch 22 - you have to have credit to get credit. I owned a home in Australia, had credit cards and still no joy... here is how I got around it.

1. You can get added to someone else's card as a joint member and you will get their credit score. You would have to find that person though so if you don't have a family member here who can do that for you try

2. Opening a credit card with the bank you are banking with. I got a good card from a major bank here because I have an income and an account with a lot of cash in it.

3. Target will give you a card with a $200 balance pretty easily

4. Set up bills in your name (eg. electicity, cell phone, internet) you will be asked to pay a deposit to do this but will get it back after 6mo - 1yr of paying on time.

Hope this helps. Worked for me, not that I have a score yet but I am on my way now!

Answer 4

You need 6 to 12 moths of credit in the US to get a credit score. If you bank at a large bank, ask the manager to make an exception and open a US credit card for you.

This will get the clock rolling for you. Also, you can open a minor account with a department store. Those are easier to get than most people think. If you want to purchase a home, you can "import" a credit report from your home country and you might be able to get a US loan.

Answer 5

I don't know about "importing" exisiting credit cards from overseas, but I do know how to build credit here. Apply for two credit cards, and use one each month (alternating) for normal expenses like food and gasoline. Pay the balance off at the end of each month, but not completely, because zero balances count against you (weird!). Also, making payments on anything you've bought (such as a car, or even rent) will go toward building your credit. I went from having basically no credit to a credit score of 712 by doing this.

Good luck!
Remember, cancelling cards and zero balances are not our friends!!!

Answer 6

The best way to build good credit is to pay your rent and utility bills in a timely manner! Establish a checking account and don't ever overdraw it. These things all add up to an excellent credit score. That is one way to do it without going the credit card route. If you are a student you can probably get a credit card or if you have a good job. If you have one then pay it off completely every month and you'll do well. Were your credit cards of the Mastercard, VISA, variety? I would think that they would reflect on an "American" credit score.

Answer 7

The fastest way to improve your credit score is to have a credit card, use it and pays in full on time every month. But you need a decent credit score. So this sounds like a chicken-egg thing.

What you can do is you apply for one of those store in-house credit card without Visa/MasterCard logo, since they are rather easier to get than those Visa/MasterCard cards. Then if you succeed to get a card, use it and always pay the whole balance on time.

Other than credit card, it is always a good idea to pay for the utility bills on time, as they tend to report to the credit bureau if you fail to pay on time.

I do not know if Amex is still doing this, but if your existing card is Amex and have a good standing, they are likely to issue you a card based on the history in UK. It is worth contacting them.