Good Credit for New Immigrants
No doubt, the United States of America is considered the land of hope and opportunity. But as a newcomer, there are certain things that need to be put in place for you to be free from any obstacle. One of these is establishing credit. This has caused setback to many immigrants due to lack of the correct information on how to make this work for them. As an immigrant, all that is needed for you to have good credit in the United states of America will be put to you in this write up to give you an easy ride in making things work fine for you in America.
Most new immigrants have discovered that it is almost impossible to purchase a car, rent a new apartment, or even request for a credit card because their credit history in US is zero. This may be a little frustrating at first, but with time, if all necessary procedures are followed, everything will turn out to be a success.
It is virtually impossible to transfer credit report from one country to another. This is as a result of differences in national laws, cultures and information management.
It is pertinent that you start from nothing when building a good credit history if you are relocating to America. This may be quite difficult, daunting and time consuming, but I’m going to give you some smart tips about building a good US credit from scratch. These tips will speed up the whole process:
✓ Start with a single account. Do not make haste over getting good credit by applying for numerous things at a go. Be targeted and start small. To get this single account, you might begin by visiting a local bank or credit union to apply for a credit card that is secured and given a credit limit. A secured credit card will give you a credit limit to be used as a regular credit card and must be paid according to credit card rules. You must understand how an American credit card works, understand that it is not the same as your native country. In this case of a secured credit card, you will need to pay a deposit of such limit that will be held until you prove yourself worthy of a higher credit card limit and no deposit. A creditor will trust the borrower to get a credit card without a deposit after 1 year.
✓ If you have a spouse, lean on him/her. If the purpose of your relocation is for love, it is possible for you to rely on your spouse’s credit card if he/she has a good credit history. By this, you have the full authority to use your spouse’s card or you can even apply for a joint loan. This medium will save you a whole lot of stress and cash if you go by this rule. It has helped so many people and it is still doing a great deal in the United States.
✓ Look for other new immigrants and relate with them. Getting information from other immigrants about their experiences is one sure and important way to getting a good credit. By networking with other new immigrants, you learn all there is to know about acquiring a good credit card without necessarily falling into the same mistakes they got involved with during the time of processing theirs.
✓ Protect your personal details. One of the silliest mistakes to make when building credit is to not keep your personal information safe. No matter how close you think you are to your new friend in your place of abode, your security details should be confided in you and you alone. Through the carelessness of not guarding personal information, the credit scores of so many people have experienced a plunge and they had to work very hard to rebuild it.
✓ Make your payments automatic. To make sure that your bills (ranging from loans to utilities) are paid on time, it is necessary to go to your bank and set up automatic payment. The good thing about this plan is that it helps you not to miss any deadline which may deter you credit score if not met.
✓ If it is possible, try to leverage your current credit card. If it is possible to visit an international financial body in your original or home country that issues credit card to get one, then it might be possible for you to call them and request for an American credit card. This is solely dependent on your previous relationship with the financial institution.
✓ Make sure your rent is paid for on time. If you are fortunate enough to have a good apartment to rent, ensure that you always pay your rent. Not paying your rent can affect your credit tremendously. The renter can kick you out, also known as evict you. Once a person gets evicted, this information will also go on the credit report as such and will quickly lower your credit score.
✓ Alternative credit should be considered. Another option through which consumer can have a good credit is by social lending, but unfortunately, this option is not open to everyone. There is an agency called Mission Asset Fund that networks with nonprofit agencies in 6 states, with the hope of doubling the number come next year. When a consumer from outside California request to take part in a lending circle, what Mission Asset Fund does is to refer the consumer to one of their nonprofit partners if there is any in that consumer’s state.
✓ It is wiser to personally approach a lender. It makes a whole lot of sense to personally go to a bank and make your case known to them instead of making an application for loan online or using a credit card application. A notable suggestion is to print out your credit history and present it to the lender. This may go a long way in helping you out.
Once all these steps have been properly followed and a credit file has been organized for you, it is important that you keep a close tab on the whole process to watch the progress of it and to check for any mistakes if need arises. It should be monitored from the day you applied for it because you never can tell where a fault that can affect your credit can come from.