How do I rebuild credit score after returning to the USA after a gap of 10 years?

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    Stilt Team (Edited )

    Credit data is usually only valid for the most recent 7 years. So, if you’ve been out of the US for 10 years, your previous credit history will not be useful (unless you were using your US credit cards). You will have to start all over again.

    To re-build a good credit score, it is important to understand different aspects of a credit score. Since you already had a good credit score, so you know the principles. I’ll add a quick refresher below:

    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).
    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 high of 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 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.

    Doing the above will help you build a credit history.

    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 https://www.stilt.co. If you have any questions, send us an email at team@stilt.co.

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