At home, the credit bureaus know you. In America, nobody does, and that costs money.
Financial Planning: Credit Score & Credit History
Part of the guide Arriving in the USA: your first 90 days as a checklist
If you're new to the United States, you need to understand how important it is to start building credit right after you arrive and to take active steps toward a solid credit history. With bad credit or no credit at all, everything costs more, and that's something you definitely want to avoid!
Your credit history is a record, over a period of time, of how you repay your debts, such as loans or credit card purchases. For newcomers to the USA the concept can be confusing, frustrating and counterintuitive, because many countries don't track credit history this way.
1What happens if I have no credit history and no credit score?
In the USA, banks, brokers and landlords use your credit score to judge how reliably you'll repay a loan, make mortgage payments or pay the rent. And your credit history plays a big part in determining that score.
Having no credit history can be just as bad as having a negative one. You might arrive from Europe with a spotless mortgage record and very little debt at home, and still have to start over in the USA with a completely blank slate.
Here's what having no credit in the USA can mean for you:
- Trouble renting an apartment or buying a house
- Trouble buying a car (higher interest rates or a declined loan)
- Extra deposits for utilities and US cell phone plans, and higher security deposits on rentals
- Higher interest rates on mortgages and car loans
- Trouble getting a credit card (so you miss out on perks like free air miles, cash back and more)
Make no mistake: without a US credit score, or without a good one, you'll pay thousands of dollars in extra fees and higher interest until you've proven you're "worth" lending to. That's why it pays to act fast and build a good credit score in the USA.
What credit history and credit scores really are, how to build your score step by step after you arrive and how long it takes: read our article Credit is king: what you need to know about the American credit system. To find out how to get US credit cards even without an SSN, see our page on the US credit card.
Everything else about your move across the Atlantic is gathered in our overview Moving to the USA. You'll find ongoing expenses under cost of living, and our article on opening an account with a major US bank shows you how to open an account with one of the big US banks from Europe.
Credit for your company and for you, built step by step.
Your own access to the American financial system, even without an SSN.
- In the USA, your credit history is what your credit record is at home, and your creditworthiness back home doesn't count there.
- No credit history at all can be as bad as a negative one.
- Without a credit score, it's hard to rent an apartment, finance a car or get a credit card. Utilities, phone carriers and landlords ask for bigger deposits.
- No credit costs you thousands of dollars in fees and interest. That's why it pays to start right after you arrive.
How we help you
- Credit BuilderCredit for your company and for you, built step by step.
- US Bank Account OpeningYour own access to the American financial system, even without an SSN.
- ITIN ExpressYour ITIN through our special procedure, no tax return needed.
- ConsultationOne hour with the firm: your case, your questions, a clear answer.
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