Key Takeaways

• There are three major U.S. credit bureaus – Equifax, Experian, and TransUnion – These bureaus collect your credit information.

   

•  You might have a different credit score for each credit bureau since your score is based on the information that that unique bureau has about you. In general, your credit score should be approximately the same across the 3 bureaus.

   

• Credit scores have a range between 300 and 850, and a credit score of 700 or above is generally considered good. The most common type of credit score is called a FICO score. Generally, lenders will provide better rates to borrowers with good credit scores.

   

• Bad credit may take many years to repair. But no credit can be resolved by building credit. In some cases, certain lenders can make loans to immigrants with no credit history.

   

•  If you are new to the U.S. and want to apply for financial products, you may be able to transfer your credit history from your previous country of residence using Nova Credit.

   

• A secured credit card can be a great place to start for immigrants to start establishing a positive credit report and credit score.

   

• Once you set up an account or two, you have to make sure you establish good habits and demonstrate that you are a reliable and trustworthy borrower

   

•  Many immigrants are able to develop a good score within a year. By continuing to maintain accounts and use them responsibly, your credit score will grow over the next few years.

   

• If you’re an immigrant who has an ITIN number and you already rescinded its use after getting your new Social Security number, you’ll also want to transfer your credit history. Your credit history is not automatically transferred from your ITIN to your SSN.
  • As mentioned previously you can access your free credit report at www.annualcreditreport.com

     

• Be wary of predatory loans that prey on minorities and immigrants with bad credit, or no credit history at all. These loans will only sink you deeper into debt with interest loans that can be as high as 300% through language that can be hard for an individual to understand.