Establishing credit for immigrants works just like it does for everyone else - slowly

There comes a time in everyone’s life when they have to start to build credit. No one is born with it; it has to be built, slowly and carefully. It may take years to develop a credit history that’s significant enough to allow you to borrow money to buy a new car or home. And as we have discussed elsewhere, your financial information is something you should handle carefully. It’s hard to fix a credit problem if you develop one, either through carelessness or irresponsibility.

What happens if you are new to the United States and want to have a credit history on file here? What if you have lived in London for your entire adult life and have a credit history there? Can you simply call some phone number and have your entire financial history sent over here so that you can buy a house?.

Unfortunately, the answer is often, “No.” That may vary if you have had credit accounts with large foreign banks, but for many people the only solution is to start over. And that takes time - usually three years or more to establish a credit history.

What must you do to establish credit as quickly as possible?

Do a search on the Internet for companies that offer major credit cards to people with little, no, or poor credit. They are out there, and they are not too hard to find. The terms are terrible; you will probably have a high interest rate and a high annual fee, as well. Alternatively, you might find a secured credit card, which requires you to put down a cash deposit against your credit limit. These cards are all expensive, so use them judiciously, but use them. Just try not to carry a balance and make sure you pay your bills on time every month. Three years of this will help you establish a history of prompt and full payment.

Don’t go crazy applying for new accounts. Doing it too often can hurt you. A lot. The bureaus do not look too fondly upon people who apply for new accounts in bunches, as it makes them appear to be desperate. Every inquiry into your financial history puts a small dent in your FICO score; many of them in a short period of time can make your situation worse.

Try to obtain and maintain a steady job. Financial stability can go a long way toward helping you reach your goal.

In three years of careful borrowing, you should be able to have a suitable track record that will allow you to obtain better financing for your Visa or Mastercard, or for a better car or home.

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