Credit Scores for Immigrants to the U.S. - How Does It Work?

Reader Question: "I am an immigrant to the United States, originally from England. I have had good credit in my previous country, and I'm wondering if this transfers to the United States in some way."

Your actual credit history will not transfer from your England to the United States. But if you bring your good financial habits with you, you should be able to establish a good credit score in the United States fairly quickly. Many immigrants have done this before you, so you can certainly follow in those footsteps.

It could take several months to establish a score, but it's a fairly straightforward process. I generally don't recommend using credit cards just for the sake of establishing a credit score. But if you do need to open a credit account, that's probably the fastest way to establish a credit history in the U.S. Most importantly, you should pay all of your bills on time and keep the balance on your credit card relatively low.

Two Credit Goals for Immigrants

There are two things an immigrant in your situation wants to do. Not only do you want to establish credit, but you also want to achieve a good credit score. Having a good score is the key to financing opportunities in this country -- not to mention the money you will save in the form of lower interest rates.

If you plan to open a credit card account after moving to the United States, my advice is to start with just one card. Use it sparingly, and maintain a low balance on the card. This will help you establish a pattern of good credit usage, which is the key to achieving a good score.

I hope this answers your question regarding your immigrant status, as it pertains to establishing a credit history here in the United States. There are several other Q&A sessions on this blog that pertain to the subject. For your convenience, I've included those articles below. Oh, and I almost forgot to say ... welcome to the U.S.!

Related article:
Not a U.S. Citizen - How to Get a Credit Score
How to Establish Credit for the First Time