How to build a credit score from scratch in the US

In the US your credit score affects renting, car loans, phone plans and even insurance prices. Newcomers start with no score, because credit history from abroad doesn't transfer. The good news: with the right steps you can build a solid score in 6–12 months.

How the score works

The most common score, FICO, runs from 300 to 850. Roughly:

• Payment history (35%): do you pay on time?
• Utilization (30%): how much of your credit limit you use.
• Length of history (15%)
• New applications (10%)
• Credit mix (10%)

Step 1: Open a bank account

Many banks open accounts with a passport and SSN, and some banks and credit unions accept an ITIN. An account with regular paychecks makes your first card easier to get.

Step 2: Get a secured credit card

With a secured card you put down a deposit equal to your limit, say $300–$500. It works like a normal card and your payments are reported to the credit bureaus. After a few months of good use, many banks upgrade you to a regular card and return the deposit.

Step 3: Spend a little, pay it all

• Use the card for one or two small bills a month, like your phone bill.
• Keep utilization low: under 30% of your limit, ideally around 10%.
• Pay the full statement balance on time every month. Turn on autopay.

Step 4: Other ways to build

• Authorized user: someone you trust can add you to their card.
• Credit-builder loan: some credit unions offer small loans that work like savings.
• Rent reporting: some landlords and services report your rent payments.

What to avoid

• Applying for many cards at once. Each application dings your score a little.
• Paying only the minimum. Interest is very high.
• Closing your first card. Older accounts lengthen your history.

Check your reports for free

You can see your reports from all three credit bureaus for free at AnnualCreditReport.com. Dispute any account you don't recognize right away.

As your score grows, renting an apartment and buying a car get much easier.

Note: This article is general information, not legal or financial advice. Rules change, so check the official source before you decide. Last checked: October 2026.