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  • Official comment
    Stilt Team

    Credit Score - It is simply a number that represents your credit worthiness. You can check out the detailed definition here - Credit score.

    It is important to understand different aspects of a credit score. 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.

    Also, credit score is not the only thing banks and lenders worry about, length of credit history is crucial. If you have a good credit score but a very short credit history, it won’t help you much. This is because credit scores start becoming accurate representation of risk after 6+ years of credit history.

    There are a few ways you build history and get a good credit score:

    1. Apply for a secured credit card
    2. Apply for a credit builder loan
    3. Get a co-signer
    4. Become an authorized user on someone else’s credit card

    Doing the above will help international students get a good credit score but for it to be useful, they also need a long enough credit history which takes time.

    About Stilt:

    Stilt provides loans to international students and working professionals in the U.S. at rates lower than any other lender. Visit us at Stilt Loans. If you have any questions, send us an email at

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