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  • Official comment
    Stilt Team (Edited )

    It is always a good idea to build credit in the U.S. but not to overextend yourselves while doing it. A good limited credit history is better than a long negative one.

    If you want to build credit, there are a lot of options but a credit builder loan or a credit card may be more suitable. Getting a car loan just to build a credit history may not be the most optimal choice.

    If you need a car, then it's completely different. You can take a car loan and if you make on-time payments without delinquencies or any other issues, you will quickly build a credit history.

    A credit score is calculated based on several things and if you understand how it works, you can improve your score faster without making mistakes.

    There are 5 major components of a credit score.

    1. Payment History - Based on a borrower’s payment history. This is the most important factor. Making regular payments on previous credit is very important. Try not to be late on your credit card and other credit payments.
    2. Credit Utilization - Make sure you don’t max out credit cards. It is important to maintain a good utilization rate (< 30% of your credit limits if you have large enough credit line).
    3. Length of Credit History - It is important to show that you can consistently use credit responsibly that’s why you length of your oldest credit account is also matters.
    4. Credit Mix - Having different accounts and types credit accounts can show that you can manage different types of debts.
    5. New Credit - Low number of recent credit inquiries are important to show that you are not looking for credit all the time.

    Things like maxed out credit utilization, too many credit cards, late payments, and defaults will have a negative impact on your credit history. Some people have a misnomer that if they pay their credit cards in full, their credit history will be better than the ones who pay the minimum balance. The truth is that it doesn’t matter if you pay your balance in full. Until you have negatives on your credit history, you are fine.

    If you are looking for a loan and want to learn more about building credit in the U.S., feel free to reach out to us at

    About Stilt:

    Stilt provides loans to international students and working professionals in the U.S. (F-1, OPT, H-1B, O-1, L-1, TN visa holders) at rates lower than any other lender. Stilt is committed to helping immigrants build a better financial future.

    We take a holistic underwriting approach to determine your interest rates and make sure you get the lowest rate possible.

    Learn more about us on Wikipedia or visit us at If you have any questions, send us an email at

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