How can I build my credit history as an international student new in the US?
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
It is important to understand different aspects of a credit score. There are 5 major components of a credit score.
- 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.
- 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).
- 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.
- Credit Mix - Having different accounts and types credit accounts can show that you can manage different types of debts.
- 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:
- Apply for a secured credit card
- Apply for a credit builder loan
- Get a co-signer
- 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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