Your credit score and – How this can have a HUGE impact on your housing situation (and many more)!

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Credit scores are crazy important and if you have a bad score, life can be hell sometimes!

A lot of people that are new to living in the United States are not familiar with the importance of having a good credit score!

Almost every major financial decision requires you to have a good credit score. For example:

  • Finding a place to rent (apartments, houses, etc.)
  • Buying a house or a condominium
  • Getting a Credit Card
  • Buying a car
  • And many more!

Your credit score can also affect the amount of interest you pay when you buy a car, for example.

How the Credit Score Works

The better your score, the less interest you have to pay because you are officially a more reliable customer!

The worse your score, the higher the interest or worst case- you get declined as a customer!

That’s why it is SO important to build good credit in the United States! Here are some great ways to do it:

  1. Start by applying for a Credit Card with a low limit! If you get declined, request a Secured Credit Card.
  2. Pay off your credit card amount regularly and on time.
  3. Apply for a second Credit Card (if you need to build a good credit score quickly) and- pay your balance regularly and on time!
  4. Don’t exceed 30% of your total Credit Card limit. If you exceed this percentage, it impacts your score negatively! It is better to get a second Credit Card instead!
  5. Find a co-signer for any bigger purchases that require good credit (for example for an apartment, house or car).
  6. Pay 100% of all your bills on time (Utilities, Internet, Phone, Rent, Mortgage, Credit Card Balance – you name it!).

These are only a few of many options to build a good credit!

What if You don’t have ANY credit history in the US?

Ok, let’s face it – The majority of us don’t have a credit score in America to even start building up.

Well – How could we if we never lived here before? This is one of the main struggles when moving to America.

And to make the situation even worse: Many banks completely decline your application to get a regular credit card because they can’t see a credit history!

There are very few options such as pre-loaded credit cards or student credit cards with a very low limit.

Having these limited options isn’t helpful at all. Besides, many banks will decline you if you don’t have a Social Security Number yet.

Okay, so – what’s the solution?

You will need to apply for a credit card that can offer an easier way for foreigners who are new to the US!

For example, a credit card company called CreditStacks offers:

1. No previous credit history required if you don’t have one. If you have lived in the US for more than a year, the application process may require a credit check – otherwise, it’s not required.

2. No Social Security Number required to apply. Applicants who have lived in the U.S. for more than one year would need to provide their SSN, and may have their credit pulled. Approved applicants have 60 days after card activation to provide their SSN. Click the link below to learn more.

3.  Higher credit limits that you can take advantage of right away.

4.  Apply and be approved BEFORE you even start your new job in the US.

Think we are kidding? Read for yourself!

After comparing some of the regular credit cards out here in the US we found that CreditStacks is a clear winner.

They understand the struggles we are facing – and they focus on helping immigrants & new arrivals in the US to make their life in America a little easier.

So – the question is: Do you want an easier way to get a credit card and start building up your credit score in the USA?

If so, you should check out the link below.

Keep an Eye on It

We also learned to use free Credit Portals to check our credit score regularly and look out for any errors or mistakes.

The one we use and enjoy is CreditKarma but there are some more out there that are free, too!

If you do find any errors in your credit report, make sure to dispute it or it will have a negative impact on your score and any future purchasing plans that you have!

The rule of thumb: If you go over a score of 700 points, you are doing great! Here is an overview:

If you need help and more details on this (sometimes very complicated) process, we highly recommend reading this book!

It really helped many of us making the right decisions and understanding everything about the best ways to build your credit score (let the reviews convince you, we loved it)!

Check out more articles about Housing in the USA here:

General Housing Information you Need to Know

Best Ways to Rent in the USA

Tips & Tricks to Buy Your own Home in the USA

Feel free to check out our Resources for more information!