How can I build my credit history as an international student new in the US?

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Stilt Team

August 28, 2016 20:43

Hello! I'm an international college student who has been in the US for two months. I opened an AT&T family plan account as a parent with my friends and got my Social Security Number last week. Could anyone suggest some ways to build my credit history as a foreign citizen?

Here are some specific questions:
1. As the parent of my AT&T family plan, does paying the phone bill on time benefits my credit a lot? Also, when I opened the account I didn't have a SSN (they charged a $500 deposit for me), should I update the information immediately (or will they even accept updating info)?
2. I'm planning on applying a credit card, but as a foreign citizen there are only limited options. Could anyone who used to have a similar situation recommend a bank & card for me? I've heard about some cards of Capital One are easy to apply.

Thanks!

 

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• Official comment

  

  Stilt Team August 28, 2016 20:44 (Edited September 16, 2017 07:17)

  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.

  

  There are a few ways you can have the above:

  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 you build a credit history faster (you can’t do a lot about length of credit).

  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.

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

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