3 Best Strategies to Build Credit Score Quickly for Immigrants

We hear a lot of stories from newcomers about how difficult it is to get the first US credit card and how frustrating it is when their credit score increases as slow as a snail. There is a myth: Get a secured credit card and your score would increase.

That is not true.

Here are 3 strategies you need to know upon and even before your arrival at U.S.:

• Never get a Secured Credit Card.
• Become an Authorized Users.
• Leverage the Global Card Transfer Program.

Never get a Secured Credit Card

A secured credit card usually gives you a very low credit line. For example $2,000. If you use $1,000 of the credit line, this means your credit usage is 50%. 50% credit usage would make your score plummet.

Become an Authorized User

Being authorized users (a.k.a. piggybacking) is a great and relatively safe way to build credit with the help of a more creditworthy trusted family member.

Your creditworthiness is built on their account. Of course, the assumptions are:

• The account needs to be free of negative payment history.
• The credit utilization rate on the account should be low.

Remember to add either your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to your authorized card(s). The card issuers need to report the account to the three major credit bureaus. Then the account will typically show up on your credit reports within 30 to 45 days, meaning you are building your credit score.

But keep in mind that not all issuers report to all three bureaus. If they do, the timing of when issuers report to credit bureaus may be different.

Leverage the Global Card Transfer Program

If you are moving to a new country and are a current American Express member, it is possible to transfer your Amex account as well. It’s extremely beneficial in order to start building up your credit in the United States.

This service is called Amex Global Transfer Program.

To be eligible for this service:

• Your existing Card must be issued by American Express.
• You must be the primary cardholder.
• You have held the Card for at least 3 months and cross-year in your original country.
• Your Card Account must be open and in good standing at the time you apply for a new Card in the U.S.
• American Express Corporate Cards and American Express Cards issued by Banks other than an American Express Bank are not eligible through this process.
• You will keep your original American Express number and your current active credit card when moving your account to the U.S.

In order to retain your existing Membership status when moving, you’ll need to apply for a new American Express Card online or by phone. In the process, you need to provide your existing account number and the additional information listed here.

Remember – You can also get the welcome bonus points of any American Express card when obtaining a new card for the first time in this global transfer service. It’s how you unlock the sign-up bonus!

Our take to build your credit as a US newcomer

The first step before you make a move to the States is important to your credit record. With Ryan’s advice, these are the effective ways to help you go through the uncertainty.

• Never get a secured card.
• Become an Authorized Users.
• Leverage the Global Card Transfer Program.

Did you find this useful to kick off your credit journey in the United States? Comment below, like it and share it with others.

This article is in collaboration with TripPlus, titled “3 Tips To Quickly Build Your Score as US Newcomers (and Unlock Your Opportunity to Get Bonus Offer)“