What You Need to Know About the U.S. Credit Score

If you’re starting a new life in the United States, there’s one number you’ll want to get familiar with early on: your credit score. Even if you’re not planning to borrow money right away, this three-digit number will follow you across many important milestones—renting an apartment, buying a car, or even getting a phone plan. The better your score, the easier (and cheaper) life becomes.

Let’s break it down in simple terms.

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What Is a Credit Score?

Your credit score is a number—usually between 300 and 850—that shows how reliable you are when it comes to borrowing and paying back money. Lenders, landlords, and even some employers look at this score to decide if they can trust you financially.

In the U.S., the most commonly used type is called the FICO score.

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What Affects Your FICO Credit Score?

The FICO score is calculated based on five key factors:

• Payment History (35%)
  Do you pay your bills on time? Even one missed payment can hurt your score.

• Amounts Owed (30%)
  How much of your available credit are you using? Ideally, try to use less than 30% of your credit limit.

• Length of Credit History (15%)
  How long have you had credit? The longer, the better—but everyone starts somewhere.

• Credit Mix (10%)
  Do you have different types of credit? A mix of a credit card, loan, and other types shows you can handle different responsibilities.

• New Credit (10%)
  Have you applied for lots of new credit recently? Too many applications at once can be a red flag.

 

 

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Why Does This Score Matter?

A good credit score makes your financial life easier. Here’s how:

 

 

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What’s a Good Credit Score?

Here’s a general breakdown:

Don’t worry if you’re starting at zero—most international professionals are. What matters is taking small, smart steps to grow your score over time.

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How to Build Credit Quickly as a Newcomer

Starting with no credit history in the U.S. can feel like you’re invisible to the financial system. But the good news is: there are clear steps you can take to build your credit from scratch, and faster than you might think.

Here’s how to get started:

• Open a U.S. Bank Account and Use It Regularly
  Start with checking and savings accounts to show financial stability. This doesn’t directly impact your credit score, but having a stable financial footprint in the U.S. helps with identity verification, which plays a role in credit applications.

• Open a Secured Credit Card
  This is one of the easiest ways to begin. You make a refundable deposit—usually around $200 to $500—which becomes your credit limit. Use the card for small purchases and pay it off in full each month to start building trust with the credit system.

• Ask to Be Added as an Authorized User
   you have a trusted family member in the U.S. that has a long-standing credit card in good standing, they can add you as an authorized user. You don’t even need to use the card yourself—just being on the account helps build your history.

• Use Rent and Utility Reporting Services
  Traditionally, rent and utilities don’t show up on your credit report—but third-party services like Experian Boost or RentTrack can change that. If you’re paying these bills consistently, make sure they count.

 

Here’s a list of apps that you might want to consider using:

• • Boom: Lets you report past and ongoing rent payments to all three credit bureaus (Experian, Equifax, TransUnion). Very popular with newcomers.
  • Experian Boost: Free tool from Experian. Let’s you add utility bills, phone bills, and streaming services (Netflix, Hulu, Disney+, etc.) to your Experian credit file. Doesn’t affect Equifax or TransUnion, but still helpful.
  • Credit Rent Boost: Reports current and past rent payments. Works with Experian and TransUnion.

 

 

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Tips for Success: What to Do (and Avoid) as You Build Credit

Building credit isn’t about being perfect—it’s about being consistent. These everyday habits will help you stay on track:

 

Do:

• Pay Every Bill On Time
  Whether it’s a phone plan, credit card, or loan—paying on time is the single most important thing you can do for your credit score.

• Keep Credit Card Balances Low
  Try to use less than 30% of your available credit. So, if your card has a $500 limit, don’t carry a balance of more than $150.

• Check Your Credit Report Once a Year
  You’re legally allowed one free report per year from each of the three major credit bureaus: Experian, Equifax, and TransUnion. Use AnnualCreditReport.com to access yours.

• Keep Accounts Open (If Possible)
  The longer you have an account open in good standing, the more it helps your credit score. Unless there’s a good reason to close a card, keeping it open works in your favor.

 

Don’t:

• Miss Payments
  A single missed payment can damage your credit score significantly—and it stays on your report for up to 7 years.

• Apply for Too Many Credit Products at Once
  Each credit application creates a “hard inquiry” on your report. Too many in a short time can make lenders nervous.

• Ignore Interest Rates and Fees
  Always read the fine print. Some credit cards may have high annual fees or interest rates. Choose products that are beginner-friendly.

 

 

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Keep In Mind

In the U.S., your credit score opens doors—or keeps them closed. It’s not just a number; it’s a reputation. Building it won’t happen overnight, but if you stay consistent, responsible, and informed, you’ll be setting yourself up for success.

You’re not alone in figuring this out. Every international professional start here. The key is understanding how the system works—and working it to your advantage.

For additional information visit:

🔗 MyFICO – Understanding Credit Scores
🔗 Consumer Financial Protection Bureau