How can a H-1B visa holder build their credit history quickly?

Comments

1 comment

  • Official comment
    Avatar
    Stilt Team (Edited )

    Hi,

    Someone who has no credit history will find it extremely difficult to get integrated into the credit system immediately, however, there are few steps that one can take to start assimilating themselves into the system.

    Following are the key ways in which you can build credit history quickly and get a good credit score:

    1. Apply for a secured credit card: If banks are not approving you for a card even with a smaller limit, get a secured credit card. These are credit cards that are backed with a cash deposit from you. The credit limit is equal to the amount deposited. People usually get a $1000-$3000 limit card to start with. After 6 months - 12 months, you can convert your secured card to an unsecured card. This will help you get on the right path to build a credit history.
    2. Apply for a credit builder loan: There are several companies that can give you a small loan to help you get on the grid of U.S. credit system. They may ask you to provide the deposit which they will lend to you but the good thing is that they will report it to the bureaus. This will get you started with a credit history.
    3. Get a co-signer: If you have family, relatives or close friends who can act as a cosigner for your credit product, you can piggyback on their credit history to get started. Remember that they will be liable to pay for your defaults, so make sure they know this and are comfortable with cosigning.
    4. Become an authorized user on someone else’s credit card: Another option is to become a user on a credit card of your family member or a relative. You will get all the benefits of a credit card and start building credit history but not be obligated to pay for charges.

    These steps will help you build a credit history faster. Make sure you are responsible with credit and make all your payments on time. Nothing hurts your credit history as bad as being delinquent on your credit obligations - doesn't matter if it's a credit card, a loan, or any other credit product that's reported to the credit bureaus.

     Stilt is always there to help you with smaller loans for which you don't need to have a credit history and soon we will reporting data to credit bureaus that'll allow you to build credit with our loans.

    Comment actions Permalink

Please sign in to leave a comment.