Last Updated on 10 hours ago by CreditForImmigrants Editorial Team

If you are new to the United States one
of the first financial concepts you need
to understand is the credit score. It
affects almost every major financial
decision in America — from renting an
apartment to buying a car to getting
a credit card.

What Is a Credit Score?

A credit score is a three digit number
between 300 and 850 that represents your
creditworthiness — how likely you are to
repay debts based on your past financial
behavior. The higher your score the more
trustworthy you appear to lenders,
landlords, and sometimes employers.

What Are the Credit Score Ranges?

300 to 579 is Poor. You will have
difficulty getting approved for most
credit products.

580 to 669 is Fair. You can get some
credit products but with higher rates.

670 to 739 is Good. You will be approved
for most credit products at reasonable rates.

740 to 799 is Very Good. You will get
better rates and terms on most products.

800 to 850 is Exceptional. You will get
the best available rates on all products.

As a new immigrant your first goal is
to reach 670 or higher within 12 to
18 months.

What Makes Up Your Credit Score?

Payment History is 35%. The most important
factor. Paying every bill on time is the
single most impactful thing you can do.

Credit Utilization is 30%. How much of
your available credit you are using.
Keep this below 30% at all times.

Length of Credit History is 15%. How
long your accounts have been open. Keep
your first account open even after you
get better cards.

Credit Mix is 10%. Having different types
of credit such as a credit card and a
credit builder loan shows you can manage
multiple types of debt.

New Credit is 10%. Applying for too many
new accounts at once temporarily lowers
your score.

What Are the Three Credit Bureaus?

There are three major credit bureaus in
the United States: Equifax, Experian,
and TransUnion. Each bureau collects
information from lenders and creates
its own credit report. Your scores from
each bureau may be slightly different.

When you apply for credit lenders check
one or more bureaus. This is why it is
important that your cards and loans
report to all three bureaus.

How Do You Start Building Credit
as an Immigrant?

Open a secured credit card that accepts
ITIN or passport. Use it for small
purchases every month. Pay the full
balance before the due date every month.
Keep your balance below 30% of your limit.

After 3 to 6 months your first credit
score will appear. After 12 months apply
for an unsecured card with better rewards.

Frequently Asked Questions

Do immigrants start with a bad credit score?
No. New immigrants start with no credit
score at all — not a bad one. A blank
file means lenders cannot assess your
risk. A bad score means they have seen
negative information.

How long does it take to get a credit
score from zero?
Most people get their first FICO score
within 3 to 6 months of opening their
first U.S. credit account.

Does having an ITIN help my credit score?
Having an ITIN itself does not affect
your score. However it allows you to
open credit accounts that report to
the bureaus and build your score.

How often does my credit score change?
Your credit score is recalculated every
time a lender reports new information
to the bureaus. This typically happens
monthly. Free tools like Credit Karma
update weekly.