SimonBelgium

Introduction
Seeing how building a credit score is one of the biggest hurdles for an immigrant to tackle, and every now and then you see a topic pop up with a question about things like credit cards, buying a car and so on, I thought it would be a good idea to have a single topic to gather all tips and tricks in a single thread.
In time, maybe we can incorporate this info into one of VJ's Guides...
What is Credit Score
The US Credit Score is a number between 300 and 850, which reflects your ability to handle credit. The official score is often referred to as FICO (Fair, Isaac & Company)
There are 5 items that contribute to your score, each with a different weight:
Payment History (35%): Any history of bankruptcy, liens, judgments, settlements, charge offs, repossessions, foreclosures, and late payments drops your score. Revolving Debt (30%): The amount borrowed versus available credit. Think Credit Cards. Length of Credit History (15%): Both the average time of accounts, as well as the age of the oldest account. These must be ACTIVE accounts. Types of Credit (10%): installment, revolving, consumer finance, mortgage. If you handle more than 1 type of credit, this is good. Inquiries and New Debt (10%): When making an inquiry for credit, such as credit card applications, shopping for a loan etc, your rating goes down. Why is this good or bad as a new immigrant
As an immigrant you do not have a history in the US. This means you DO NOT HAVE a US credit rating when you arrive.
The positive thing is that you also do not have any BAD payment history.
The bad thing is, credit is a catch-22 problem in the US: You can't get credit without a good credit score, and you can't get a good credit score without having and using credit.
Any cards, accounts or history you have or had abroad do not count. (One known exception, see below)
What credit score ranges are there
Excellent credit score: 720 and Up Good credit score: 680 to 719 Average credit score: 620 to 679 Poor credit score: 580 to 619 Bad credit score: 500 to 579 Miserable credit score: Less than 500 How to get credit so you have items reporting into your credit score
A lot depends on your personal situation. Are you married, employed, do you have cash to open an account, and so on.
Typically, you will need to find a bank or credit union first, so ask around.
Once you have found a suitable financial institution, ask for a "Secured Credit Card". This is a card with a certain spending limit, which amount you secure through the financial institution by depositing the cash equivalent on a locked account.
You can then use the assigned credit, and after the first month's statement is due, you will have items reporting into your credit score. You now have payment history, length of credit and revolving debt.
Usually, your bank will replace the secured credit card with a regular credit card, increasing the limit on the card. Expect this after a few months, if you pay your statements on time.
People coming in through a work visa can often get a company credit card, which makes life a lot easier!
If your spouse has a good credit rating, the financial institution might also allow him/her to co-sign the credit card application. Check with the financial institution on the requirements they have. In theory any person (in the US) with good credit can co-sign, so a family friend, parents etc are fine too.
How to get from decent to excellent credit
OK, now that we have some things reporting into our credit score, how can we boost that score up?
1. The number one rule: PAY EVERYTHING ON TIME, IN FULL
2. Specifically to credit cards, the use of credit is important, more specifically, how much do you charge to your card:
Per account, avoid exceeding 33% of assigned credit. Some people say it's best to have a utilization of 12-20% (Some say between 1 and 20%) The utilization is based on the amount due on the reporting date. If you buy a 900$ television on a 1000$ credit, but deposit 700$ before the reporting date, your utilization is only 200$, or 20% (Can anyone confirm?) Do not leave credit cards unused (When not using credit, this hurts your score). If you have a 500$ secured card, you could for instance use it to put fuel in your car every week or so. Do not close old credit cards, this hurts your account age! 3. Diversify. Get at least one credit card and one installment loan. You can get a secured installment loan through your financial institution. If you want to buy a TV for 1000$, but that 1000$ in a secured account at the bank, and have them give you a loan over 12 months against that deposit.
Another option, typically when buying a car, is to get a car from a dealer who gives credit to "anyone". But ALWAYS ask if they report to the credit agencies (CRAs). Then pay the remainder of the loan after at least SIX months. The intrest rate will be ridiculous (over 20% in most cases).
According to Equifax, having at least 4 (different) lines of credit are required to get a really good score (Credit Card, Mortgage, Car Payment, Student Loans, Personal Loans, Home Equity Loan for Credit, ...)
My credit union actually suggested the following:
a) Get a "personal secured loan" to buy a car. (basically: Put the money you would pay as a cash downpayment on a car, into a secured loan for yourself)
b) After 90d of employment, you qualify for a "first time borrower" loan. Bring in the title to the car, and you can use the title to borrow against. You'd get a mediocre intrest rate (C-level credit).
This would give you 3 lines of credit after about 4 months, which is pretty good !
Age of Credit Accounts
Even if you have a decent credit score after a few months, when the time comes you want to buy your first car, you might get rejected quite a bit on your loan, due to "no sufficient credit history". Although the average age of accounts only counts for 15% of the credit score algorithm, financial institutions will count this as one of the major factors for credit decisions. The solution is to get a large downpayment, and preferably work with the financial institution directly, not through a dealer.
Credit Reporting Agencies
There are 3 major CRAs in the US:
TransUnion (http://www.transunion.com) Equifax (http://www.equifax.com) Experian (http://www.experian.com) They all have minor differences in how they calculate your credit score. By law, they are (each) required to give you one free credit report per year.
What can affect your score negatively?
(From TransUnion) Wondering when judgments and bankruptcies will no longer appear on your credit reports? Check the dates on records in your credit report. Generally, here's how long judgments and bankruptcies remain on a credit report: Bankruptcy Generally, Chapter 7, 11 and 13 bankruptcies appear as public record items on your credit report for up to 10 years after filing. Chapter 13 bankruptcy records are sometimes taken off sooner, 7 years after filing, depending on the credit reporting company’s policy. When you receive an Order of Discharge in bankruptcy, your creditors should mark those accounts that were discharged as "Included in Bankruptcy" and they will stay on your report for up to 7 years. Charge-off accounts Generally, if a delinquent account is charged-off, the charge-off record appears on your credit report for up to 7 years. Closed accounts Generally, negative or derogatory information about delinquent accounts remain on your credit reports for up to 7 years. Positive closed accounts (without late payments or other delinquencies) may appear for longer than 7 years. Collection accounts Generally, accounts sent to collections will be listed on your credit report for up to 7 years, beginning 181 days from the most recent delinquent period before the collection activity. A collection account’s status should change to "paid collection" once you've paid off the entire amount. If you settle with the collection agency for less, your credit report may list the account as "settled for less than full balance." Inquiries When a creditor or lender checks your credit in connection with an application, you'll usually see a "hard inquiry" on your credit report. Generally, these stay on your report for as long as two years, and may lower your credit score slightly. When a creditor reviews the credit report of an existing customer, or when you access your own data online, a "soft inquiry" typically shows up on your credit report. Soft inquiries don't lower your credit score or appear to businesses checking your credit. Judgments Generally, most court judgments, including small claims, civil and child support, stay on your credit reports for up to 7 years from the date they were filed. Late payments Generally, if you make a payment late, the delinquency could appear on your credit report for up to 7 years. Tax liens Under federal law, city, county, state and federal tax liens could stay on your report indefinitely. Generally, after the lien is paid, the record of it stays on your credit reports for up to 7 years from the payment date. One of the most important of these are the inquiries. If you want to get store credit or a new credit card, DO NOT JUST APPLY for one. Every time you apply for credit, your score will drop a few points, and the inquiry itself (Often referred to as "hard inquiry) stays on your report. Lenders who see systematic hard inquiries on a report see this as negative.
However, when shopping for a car (and thus car loans), all hard inquiries within 14 days are reported as one. When buying a house and a mortgage, they are grouped into one for 30 days.
Major Tip:
VISA and MasterCard are basically payment PLATFORMS, where local financial institutions issue the credit through the platform. Your credit history and account reside with that financial institution.
American Express (AMEX) however, issues the credit itself (Sometimes through local companies, but the credit file is shared with Amex --> This appears NOT to be the case: If cards in your country are not issued by American Express directly (Global Network Cards), they cannot be transferred.).
If you have an Amex abroad, and have had it for more than 12 months, you can (in most cases) request a US Amex card to replace your foreign card. The advantage is, with a good foreign history, chances of approval are very high, plus, the age of your account goes back to the first issuance of your Amex card abroad !
https://www.americanexpress.com/global-card-transfers/united-states.html
Transferring Funds to the USA:
Another point to remember is that transferring your foreign money to your new US account (for instance, to get your secured loan or secured credit card) can be a costly affair. Banks have 2 areas to make money off you:
Transfer fee: Usually a flat fee or a fixed percentage. This is the fee that is generally quite visible. Exchange Rate: The exchange rate your bank will use is quite different from the real exchange rate on the market. For example, the exchange rate between the EURO and the US DOLLAR might be 1.330 on the market, but your bank might only offer you 1.290. That is a 3% difference you might not see ! After doing some research, I settled on TransferWise. (https://transferwise.com/u/b6f15). This seems to be the best platform so far for people in Europe (incl. the UK) to send money to the US. (Or from UK -> EU and vice versa).
It takes a few days longer than most bank transfers, but other than that, I have found it faultless and easy to use. The people behind TransferWise are those that built Skype.
Little disclaimer: The URL provided (https://transferwise.com/u/b6f15) is linked to my account and will allow me to accumulate friend referral benefits.
There are other platforms that outperform high-street banks and Paypal, please feel free to comment below to add your experiences (and from where to where you sent the money). I would find it useful to add information on how to send money from Non-EU countries, and also how to send money to the foreign spouse / fiancee.
Reading Tips:
http://www.myfico.com/CreditEducation/articles/
http://www.freescore.com/good-bad-credit-score-range.aspx

Introduction
Seeing how building a credit score is one of the biggest hurdles for an immigrant to tackle, and every now and then you see a topic pop up with a question about things like credit cards, buying a car and so on, I thought it would be a good idea to have a single topic to gather all tips and tricks in a single thread.
In time, maybe we can incorporate this info into one of VJ's Guides...
What is Credit Score
The US Credit Score is a number between 300 and 850, which reflects your ability to handle credit. The official score is often referred to as FICO (Fair, Isaac & Company)
There are 5 items that contribute to your score, each with a different weight:
Payment History (35%): Any history of bankruptcy, liens, judgments, settlements, charge offs, repossessions, foreclosures, and late payments drops your score. Revolving Debt (30%): The amount borrowed versus available credit. Think Credit Cards. Length of Credit History (15%): Both the average time of accounts, as well as the age of the oldest account. These must be ACTIVE accounts. Types of Credit (10%): installment, revolving, consumer finance, mortgage. If you handle more than 1 type of credit, this is good. Inquiries and New Debt (10%): When making an inquiry for credit, such as credit card applications, shopping for a loan etc, your rating goes down. Why is this good or bad as a new immigrant
As an immigrant you do not have a history in the US. This means you DO NOT HAVE a US credit rating when you arrive.
The positive thing is that you also do not have any BAD payment history.
The bad thing is, credit is a catch-22 problem in the US: You can't get credit without a good credit score, and you can't get a good credit score without having and using credit.
Any cards, accounts or history you have or had abroad do not count. (One known exception, see below)
What credit score ranges are there
Excellent credit score: 720 and Up Good credit score: 680 to 719 Average credit score: 620 to 679 Poor credit score: 580 to 619 Bad credit score: 500 to 579 Miserable credit score: Less than 500 How to get credit so you have items reporting into your credit score
A lot depends on your personal situation. Are you married, employed, do you have cash to open an account, and so on.
Typically, you will need to find a bank or credit union first, so ask around.
Once you have found a suitable financial institution, ask for a "Secured Credit Card". This is a card with a certain spending limit, which amount you secure through the financial institution by depositing the cash equivalent on a locked account.
You can then use the assigned credit, and after the first month's statement is due, you will have items reporting into your credit score. You now have payment history, length of credit and revolving debt.
Usually, your bank will replace the secured credit card with a regular credit card, increasing the limit on the card. Expect this after a few months, if you pay your statements on time.
People coming in through a work visa can often get a company credit card, which makes life a lot easier!
If your spouse has a good credit rating, the financial institution might also allow him/her to co-sign the credit card application. Check with the financial institution on the requirements they have. In theory any person (in the US) with good credit can co-sign, so a family friend, parents etc are fine too.
How to get from decent to excellent credit
OK, now that we have some things reporting into our credit score, how can we boost that score up?
1. The number one rule: PAY EVERYTHING ON TIME, IN FULL
2. Specifically to credit cards, the use of credit is important, more specifically, how much do you charge to your card:
Per account, avoid exceeding 33% of assigned credit. Some people say it's best to have a utilization of 12-20% (Some say between 1 and 20%) The utilization is based on the amount due on the reporting date. If you buy a 900$ television on a 1000$ credit, but deposit 700$ before the reporting date, your utilization is only 200$, or 20% (Can anyone confirm?) Do not leave credit cards unused (When not using credit, this hurts your score). If you have a 500$ secured card, you could for instance use it to put fuel in your car every week or so. Do not close old credit cards, this hurts your account age! 3. Diversify. Get at least one credit card and one installment loan. You can get a secured installment loan through your financial institution. If you want to buy a TV for 1000$, but that 1000$ in a secured account at the bank, and have them give you a loan over 12 months against that deposit.
Another option, typically when buying a car, is to get a car from a dealer who gives credit to "anyone". But ALWAYS ask if they report to the credit agencies (CRAs). Then pay the remainder of the loan after at least SIX months. The intrest rate will be ridiculous (over 20% in most cases).
According to Equifax, having at least 4 (different) lines of credit are required to get a really good score (Credit Card, Mortgage, Car Payment, Student Loans, Personal Loans, Home Equity Loan for Credit, ...)
My credit union actually suggested the following:
a) Get a "personal secured loan" to buy a car. (basically: Put the money you would pay as a cash downpayment on a car, into a secured loan for yourself)
b) After 90d of employment, you qualify for a "first time borrower" loan. Bring in the title to the car, and you can use the title to borrow against. You'd get a mediocre intrest rate (C-level credit).
This would give you 3 lines of credit after about 4 months, which is pretty good !
Age of Credit Accounts
Even if you have a decent credit score after a few months, when the time comes you want to buy your first car, you might get rejected quite a bit on your loan, due to "no sufficient credit history". Although the average age of accounts only counts for 15% of the credit score algorithm, financial institutions will count this as one of the major factors for credit decisions. The solution is to get a large downpayment, and preferably work with the financial institution directly, not through a dealer.
Credit Reporting Agencies
There are 3 major CRAs in the US:
TransUnion (http://www.transunion.com) Equifax (http://www.equifax.com) Experian (http://www.experian.com) They all have minor differences in how they calculate your credit score. By law, they are (each) required to give you one free credit report per year.
What can affect your score negatively?
(From TransUnion) Wondering when judgments and bankruptcies will no longer appear on your credit reports? Check the dates on records in your credit report. Generally, here's how long judgments and bankruptcies remain on a credit report: Bankruptcy Generally, Chapter 7, 11 and 13 bankruptcies appear as public record items on your credit report for up to 10 years after filing. Chapter 13 bankruptcy records are sometimes taken off sooner, 7 years after filing, depending on the credit reporting company’s policy. When you receive an Order of Discharge in bankruptcy, your creditors should mark those accounts that were discharged as "Included in Bankruptcy" and they will stay on your report for up to 7 years. Charge-off accounts Generally, if a delinquent account is charged-off, the charge-off record appears on your credit report for up to 7 years. Closed accounts Generally, negative or derogatory information about delinquent accounts remain on your credit reports for up to 7 years. Positive closed accounts (without late payments or other delinquencies) may appear for longer than 7 years. Collection accounts Generally, accounts sent to collections will be listed on your credit report for up to 7 years, beginning 181 days from the most recent delinquent period before the collection activity. A collection account’s status should change to "paid collection" once you've paid off the entire amount. If you settle with the collection agency for less, your credit report may list the account as "settled for less than full balance." Inquiries When a creditor or lender checks your credit in connection with an application, you'll usually see a "hard inquiry" on your credit report. Generally, these stay on your report for as long as two years, and may lower your credit score slightly. When a creditor reviews the credit report of an existing customer, or when you access your own data online, a "soft inquiry" typically shows up on your credit report. Soft inquiries don't lower your credit score or appear to businesses checking your credit. Judgments Generally, most court judgments, including small claims, civil and child support, stay on your credit reports for up to 7 years from the date they were filed. Late payments Generally, if you make a payment late, the delinquency could appear on your credit report for up to 7 years. Tax liens Under federal law, city, county, state and federal tax liens could stay on your report indefinitely. Generally, after the lien is paid, the record of it stays on your credit reports for up to 7 years from the payment date. One of the most important of these are the inquiries. If you want to get store credit or a new credit card, DO NOT JUST APPLY for one. Every time you apply for credit, your score will drop a few points, and the inquiry itself (Often referred to as "hard inquiry) stays on your report. Lenders who see systematic hard inquiries on a report see this as negative.
However, when shopping for a car (and thus car loans), all hard inquiries within 14 days are reported as one. When buying a house and a mortgage, they are grouped into one for 30 days.
Major Tip:
VISA and MasterCard are basically payment PLATFORMS, where local financial institutions issue the credit through the platform. Your credit history and account reside with that financial institution.
American Express (AMEX) however, issues the credit itself (Sometimes through local companies, but the credit file is shared with Amex --> This appears NOT to be the case: If cards in your country are not issued by American Express directly (Global Network Cards), they cannot be transferred.).
If you have an Amex abroad, and have had it for more than 12 months, you can (in most cases) request a US Amex card to replace your foreign card. The advantage is, with a good foreign history, chances of approval are very high, plus, the age of your account goes back to the first issuance of your Amex card abroad !
https://www.americanexpress.com/global-card-transfers/united-states.html
Transferring Funds to the USA:
Another point to remember is that transferring your foreign money to your new US account (for instance, to get your secured loan or secured credit card) can be a costly affair. Banks have 2 areas to make money off you:
Transfer fee: Usually a flat fee or a fixed percentage. This is the fee that is generally quite visible. Exchange Rate: The exchange rate your bank will use is quite different from the real exchange rate on the market. For example, the exchange rate between the EURO and the US DOLLAR might be 1.330 on the market, but your bank might only offer you 1.290. That is a 3% difference you might not see ! After doing some research, I settled on TransferWise. (https://transferwise.com/u/b6f15). This seems to be the best platform so far for people in Europe (incl. the UK) to send money to the US. (Or from UK -> EU and vice versa).
It takes a few days longer than most bank transfers, but other than that, I have found it faultless and easy to use. The people behind TransferWise are those that built Skype.
Little disclaimer: The URL provided (https://transferwise.com/u/b6f15) is linked to my account and will allow me to accumulate friend referral benefits.
There are other platforms that outperform high-street banks and Paypal, please feel free to comment below to add your experiences (and from where to where you sent the money). I would find it useful to add information on how to send money from Non-EU countries, and also how to send money to the foreign spouse / fiancee.
Reading Tips:
http://www.myfico.com/CreditEducation/articles/
http://www.freescore.com/good-bad-credit-score-range.aspx

Introduction
Seeing how building a credit score is one of the biggest hurdles for an immigrant to tackle, and every now and then you see a topic pop up with a question about things like credit cards, buying a car and so on, I thought it would be a good idea to have a single topic to gather all tips and tricks in a single thread.
In time, maybe we can incorporate this info into one of VJ's Guides...
What is Credit Score
The US Credit Score is a number between 300 and 850, which reflects your ability to handle credit. The official score is often referred to as FICO (Fair, Isaac & Company)
There are 5 items that contribute to your score, each with a different weight:
Payment History (35%): Any history of bankruptcy, liens, judgments, settlements, charge offs, repossessions, foreclosures, and late payments drops your score. Revolving Debt (30%): The amount borrowed versus available credit. Think Credit Cards. Length of Credit History (15%): Both the average time of accounts, as well as the age of the oldest account. These must be ACTIVE accounts. Types of Credit (10%): installment, revolving, consumer finance, mortgage. If you handle more than 1 type of credit, this is good. Inquiries and New Debt (10%): When making an inquiry for credit, such as credit card applications, shopping for a loan etc, your rating goes down. Why is this good or bad as a new immigrant
As an immigrant you do not have a history in the US. This means you DO NOT HAVE a US credit rating when you arrive.
The positive thing is that you also do not have any BAD payment history.
The bad thing is, credit is a catch-22 problem in the US: You can't get credit without a good credit score, and you can't get a good credit score without having and using credit.
Any cards, accounts or history you have or had abroad do not count. (One known exception, see below)
What credit score ranges are there
Excellent credit score: 720 and Up Good credit score: 680 to 719 Average credit score: 620 to 679 Poor credit score: 580 to 619 Bad credit score: 500 to 579 Miserable credit score: Less than 500 How to get credit so you have items reporting into your credit score
A lot depends on your personal situation. Are you married, employed, do you have cash to open an account, and so on.
Typically, you will need to find a bank or credit union first, so ask around.
Once you have found a suitable financial institution, ask for a "Secured Credit Card". This is a card with a certain spending limit, which amount you secure through the financial institution by depositing the cash equivalent on a locked account.
You can then use the assigned credit, and after the first month's statement is due, you will have items reporting into your credit score. You now have payment history, length of credit and revolving debt.
Usually, your bank will replace the secured credit card with a regular credit card, increasing the limit on the card. Expect this after a few months, if you pay your statements on time.
People coming in through a work visa can often get a company credit card, which makes life a lot easier!
If your spouse has a good credit rating, the financial institution might also allow him/her to co-sign the credit card application. Check with the financial institution on the requirements they have. In theory any person (in the US) with good credit can co-sign, so a family friend, parents etc are fine too.
How to get from decent to excellent credit
OK, now that we have some things reporting into our credit score, how can we boost that score up?
1. The number one rule: PAY EVERYTHING ON TIME, IN FULL
2. Specifically to credit cards, the use of credit is important, more specifically, how much do you charge to your card:
Per account, avoid exceeding 33% of assigned credit. Some people say it's best to have a utilization of 12-20% (Some say between 1 and 20%) The utilization is based on the amount due on the reporting date. If you buy a 900$ television on a 1000$ credit, but deposit 700$ before the reporting date, your utilization is only 200$, or 20% (Can anyone confirm?) Do not leave credit cards unused (When not using credit, this hurts your score). If you have a 500$ secured card, you could for instance use it to put fuel in your car every week or so. Do not close old credit cards, this hurts your account age! 3. Diversify. Get at least one credit card and one installment loan. You can get a secured installment loan through your financial institution. If you want to buy a TV for 1000$, but that 1000$ in a secured account at the bank, and have them give you a loan over 12 months against that deposit.
Another option, typically when buying a car, is to get a car from a dealer who gives credit to "anyone". But ALWAYS ask if they report to the credit agencies (CRAs). Then pay the remainder of the loan after at least SIX months. The intrest rate will be ridiculous (over 20% in most cases).
According to Equifax, having at least 4 (different) lines of credit are required to get a really good score (Credit Card, Mortgage, Car Payment, Student Loans, Personal Loans, Home Equity Loan for Credit, ...)
My credit union actually suggested the following:
a) Get a "personal secured loan" to buy a car. (basically: Put the money you would pay as a cash downpayment on a car, into a secured loan for yourself)
b) After 90d of employment, you qualify for a "first time borrower" loan. Bring in the title to the car, and you can use the title to borrow against. You'd get a mediocre intrest rate (C-level credit).
This would give you 3 lines of credit after about 4 months, which is pretty good !
Age of Credit Accounts
Even if you have a decent credit score after a few months, when the time comes you want to buy your first car, you might get rejected quite a bit on your loan, due to "no sufficient credit history". Although the average age of accounts only counts for 15% of the credit score algorithm, financial institutions will count this as one of the major factors for credit decisions. The solution is to get a large downpayment, and preferably work with the financial institution directly, not through a dealer.
Credit Reporting Agencies
There are 3 major CRAs in the US:
TransUnion (http://www.transunion.com) Equifax (http://www.equifax.com) Experian (http://www.experian.com) They all have minor differences in how they calculate your credit score. By law, they are (each) required to give you one free credit report per year.
What can affect your score negatively?
(From TransUnion) Wondering when judgments and bankruptcies will no longer appear on your credit reports? Check the dates on records in your credit report. Generally, here's how long judgments and bankruptcies remain on a credit report: Bankruptcy Generally, Chapter 7, 11 and 13 bankruptcies appear as public record items on your credit report for up to 10 years after filing. Chapter 13 bankruptcy records are sometimes taken off sooner, 7 years after filing, depending on the credit reporting company’s policy. When you receive an Order of Discharge in bankruptcy, your creditors should mark those accounts that were discharged as "Included in Bankruptcy" and they will stay on your report for up to 7 years. Charge-off accounts Generally, if a delinquent account is charged-off, the charge-off record appears on your credit report for up to 7 years. Closed accounts Generally, negative or derogatory information about delinquent accounts remain on your credit reports for up to 7 years. Positive closed accounts (without late payments or other delinquencies) may appear for longer than 7 years. Collection accounts Generally, accounts sent to collections will be listed on your credit report for up to 7 years, beginning 181 days from the most recent delinquent period before the collection activity. A collection account’s status should change to "paid collection" once you've paid off the entire amount. If you settle with the collection agency for less, your credit report may list the account as "settled for less than full balance." Inquiries When a creditor or lender checks your credit in connection with an application, you'll usually see a "hard inquiry" on your credit report. Generally, these stay on your report for as long as two years, and may lower your credit score slightly. When a creditor reviews the credit report of an existing customer, or when you access your own data online, a "soft inquiry" typically shows up on your credit report. Soft inquiries don't lower your credit score or appear to businesses checking your credit. Judgments Generally, most court judgments, including small claims, civil and child support, stay on your credit reports for up to 7 years from the date they were filed. Late payments Generally, if you make a payment late, the delinquency could appear on your credit report for up to 7 years. Tax liens Under federal law, city, county, state and federal tax liens could stay on your report indefinitely. Generally, after the lien is paid, the record of it stays on your credit reports for up to 7 years from the payment date. One of the most important of these are the inquiries. If you want to get store credit or a new credit card, DO NOT JUST APPLY for one. Every time you apply for credit, your score will drop a few points, and the inquiry itself (Often referred to as "hard inquiry) stays on your report. Lenders who see systematic hard inquiries on a report see this as negative.
However, when shopping for a car (and thus car loans), all hard inquiries within 14 days are reported as one. When buying a house and a mortgage, they are grouped into one for 30 days.
Major Tip:
VISA and MasterCard are basically payment PLATFORMS, where local financial institutions issue the credit through the platform. Your credit history and account reside with that financial institution.
American Express (AMEX) however, issues the credit itself (Sometimes through local companies, but the credit file is shared with Amex --> This appears NOT to be the case: If cards in your country are not issued by American Express directly (Global Network Cards), they cannot be transferred.).
If you have an Amex abroad, and have had it for more than 12 months, you can (in most cases) request a US Amex card to replace your foreign card. The advantage is, with a good foreign history, chances of approval are very high, plus, the age of your account goes back to the first issuance of your Amex card abroad !
https://www.americanexpress.com/global-card-transfers/united-states.html
Transferring Funds to the USA:
Another point to remember is that transferring your foreign money to your new US account (for instance, to get your secured loan or secured credit card) can be a costly affair. Banks have 2 areas to make money off you:
Transfer fee: Usually a flat fee or a fixed percentage. This is the fee that is generally quite visible. Exchange Rate: The exchange rate your bank will use is quite different from the real exchange rate on the market. For example, the exchange rate between the EURO and the US DOLLAR might be 1.330 on the market, but your bank might only offer you 1.290. That is a 3% difference you might not see ! After doing some research, I settled on TransferWise. (https://transferwise.com/u/b6f15). This seems to be the best platform so far for people in Europe (incl. the UK) to send money to the US. (Or from UK -> EU and vice versa).
It takes a few days longer than most bank transfers, but other than that, I have found it faultless and easy to use. The people behind TransferWise are those that built Skype.
Little disclaimer: The URL provided (https://transferwise.com/u/b6f15) is linked to my account and will allow me to accumulate friend referral benefits.
There are other platforms that outperform high-street banks and Paypal, please feel free to comment below to add your experiences (and from where to where you sent the money). I would find it useful to add information on how to send money from Non-EU countries, and also how to send money to the foreign spouse / fiancee.
Reading Tips:
http://www.myfico.com/CreditEducation/articles/
http://www.freescore.com/good-bad-credit-score-range.aspx

Introduction
Seeing how building a credit score is one of the biggest hurdles for an immigrant to tackle, and every now and then you see a topic pop up with a question about things like credit cards, buying a car and so on, I thought it would be a good idea to have a single topic to gather all tips and tricks in a single thread.
In time, maybe we can incorporate this info into one of VJ's Guides...
What is Credit Score
The US Credit Score is a number between 300 and 850, which reflects your ability to handle credit. The official score is often referred to as FICO (Fair, Isaac & Company)
There are 5 items that contribute to your score, each with a different weight:
Payment History (35%): Any history of bankruptcy, liens, judgments, settlements, charge offs, repossessions, foreclosures, and late payments drops your score. Revolving Debt (30%): The amount borrowed versus available credit. Think Credit Cards. Length of Credit History (15%): Both the average time of accounts, as well as the age of the oldest account. These must be ACTIVE accounts. Types of Credit (10%): installment, revolving, consumer finance, mortgage. If you handle more than 1 type of credit, this is good. Inquiries and New Debt (10%): When making an inquiry for credit, such as credit card applications, shopping for a loan etc, your rating goes down. Why is this good or bad as a new immigrant
As an immigrant you do not have a history in the US. This means you DO NOT HAVE a US credit rating when you arrive.
The positive thing is that you also do not have any BAD payment history.
The bad thing is, credit is a catch-22 problem in the US: You can't get credit without a good credit score, and you can't get a good credit score without having and using credit.
Any cards, accounts or history you have or had abroad do not count. (One known exception, see below)
What credit score ranges are there
Excellent credit score: 720 and Up Good credit score: 680 to 719 Average credit score: 620 to 679 Poor credit score: 580 to 619 Bad credit score: 500 to 579 Miserable credit score: Less than 500 How to get credit so you have items reporting into your credit score
A lot depends on your personal situation. Are you married, employed, do you have cash to open an account, and so on.
Typically, you will need to find a bank or credit union first, so ask around.
Once you have found a suitable financial institution, ask for a "Secured Credit Card". This is a card with a certain spending limit, which amount you secure through the financial institution by depositing the cash equivalent on a locked account.
You can then use the assigned credit, and after the first month's statement is due, you will have items reporting into your credit score. You now have payment history, length of credit and revolving debt.
Usually, your bank will replace the secured credit card with a regular credit card, increasing the limit on the card. Expect this after a few months, if you pay your statements on time.
People coming in through a work visa can often get a company credit card, which makes life a lot easier!
If your spouse has a good credit rating, the financial institution might also allow him/her to co-sign the credit card application. Check with the financial institution on the requirements they have. In theory any person (in the US) with good credit can co-sign, so a family friend, parents etc are fine too.
How to get from decent to excellent credit
OK, now that we have some things reporting into our credit score, how can we boost that score up?
1. The number one rule: PAY EVERYTHING ON TIME, IN FULL
2. Specifically to credit cards, the use of credit is important, more specifically, how much do you charge to your card:
Per account, avoid exceeding 33% of assigned credit. Some people say it's best to have a utilization of 12-20% (Some say between 1 and 20%) The utilization is based on the amount due on the reporting date. If you buy a 900$ television on a 1000$ credit, but deposit 700$ before the reporting date, your utilization is only 200$, or 20% (Can anyone confirm?) Do not leave credit cards unused (When not using credit, this hurts your score). If you have a 500$ secured card, you could for instance use it to put fuel in your car every week or so. Do not close old credit cards, this hurts your account age! 3. Diversify. Get at least one credit card and one installment loan. You can get a secured installment loan through your financial institution. If you want to buy a TV for 1000$, but that 1000$ in a secured account at the bank, and have them give you a loan over 12 months against that deposit.
Another option, typically when buying a car, is to get a car from a dealer who gives credit to "anyone". But ALWAYS ask if they report to the credit agencies (CRAs). Then pay the remainder of the loan after at least SIX months. The intrest rate will be ridiculous (over 20% in most cases).
According to Equifax, having at least 4 (different) lines of credit are required to get a really good score (Credit Card, Mortgage, Car Payment, Student Loans, Personal Loans, Home Equity Loan for Credit, ...)
My credit union actually suggested the following:
a) Get a "personal secured loan" to buy a car. (basically: Put the money you would pay as a cash downpayment on a car, into a secured loan for yourself)
b) After 90d of employment, you qualify for a "first time borrower" loan. Bring in the title to the car, and you can use the title to borrow against. You'd get a mediocre intrest rate (C-level credit).
This would give you 3 lines of credit after about 4 months, which is pretty good !
Age of Credit Accounts
Even if you have a decent credit score after a few months, when the time comes you want to buy your first car, you might get rejected quite a bit on your loan, due to "no sufficient credit history". Although the average age of accounts only counts for 15% of the credit score algorithm, financial institutions will count this as one of the major factors for credit decisions. The solution is to get a large downpayment, and preferably work with the financial institution directly, not through a dealer.
Credit Reporting Agencies
There are 3 major CRAs in the US:
TransUnion (http://www.transunion.com) Equifax (http://www.equifax.com) Experian (http://www.experian.com) They all have minor differences in how they calculate your credit score. By law, they are (each) required to give you one free credit report per year.
What can affect your score negatively?
(From TransUnion) Wondering when judgments and bankruptcies will no longer appear on your credit reports? Check the dates on records in your credit report. Generally, here's how long judgments and bankruptcies remain on a credit report: Bankruptcy Generally, Chapter 7, 11 and 13 bankruptcies appear as public record items on your credit report for up to 10 years after filing. Chapter 13 bankruptcy records are sometimes taken off sooner, 7 years after filing, depending on the credit reporting company’s policy. When you receive an Order of Discharge in bankruptcy, your creditors should mark those accounts that were discharged as "Included in Bankruptcy" and they will stay on your report for up to 7 years. Charge-off accounts Generally, if a delinquent account is charged-off, the charge-off record appears on your credit report for up to 7 years. Closed accounts Generally, negative or derogatory information about delinquent accounts remain on your credit reports for up to 7 years. Positive closed accounts (without late payments or other delinquencies) may appear for longer than 7 years. Collection accounts Generally, accounts sent to collections will be listed on your credit report for up to 7 years, beginning 181 days from the most recent delinquent period before the collection activity. A collection account’s status should change to "paid collection" once you've paid off the entire amount. If you settle with the collection agency for less, your credit report may list the account as "settled for less than full balance." Inquiries When a creditor or lender checks your credit in connection with an application, you'll usually see a "hard inquiry" on your credit report. Generally, these stay on your report for as long as two years, and may lower your credit score slightly. When a creditor reviews the credit report of an existing customer, or when you access your own data online, a "soft inquiry" typically shows up on your credit report. Soft inquiries don't lower your credit score or appear to businesses checking your credit. Judgments Generally, most court judgments, including small claims, civil and child support, stay on your credit reports for up to 7 years from the date they were filed. Late payments Generally, if you make a payment late, the delinquency could appear on your credit report for up to 7 years. Tax liens Under federal law, city, county, state and federal tax liens could stay on your report indefinitely. Generally, after the lien is paid, the record of it stays on your credit reports for up to 7 years from the payment date. One of the most important of these are the inquiries. If you want to get store credit or a new credit card, DO NOT JUST APPLY for one. Every time you apply for credit, your score will drop a few points, and the inquiry itself (Often referred to as "hard inquiry) stays on your report. Lenders who see systematic hard inquiries on a report see this as negative.
However, when shopping for a car (and thus car loans), all hard inquiries within 14 days are reported as one. When buying a house and a mortgage, they are grouped into one for 30 days.
Major Tip:
VISA and MasterCard are basically payment PLATFORMS, where local financial institutions issue the credit through the platform. Your credit history and account reside with that financial institution.
American Express (AMEX) however, issues the credit itself (Sometimes through local companies, but the credit file is shared with Amex --> This appears NOT to be the case: If cards in your country are not issued by American Express directly (Global Network Cards), they cannot be transferred.).
If you have an Amex abroad, and have had it for more than 12 months, you can (in most cases) request a US Amex card to replace your foreign card. The advantage is, with a good foreign history, chances of approval are very high, plus, the age of your account goes back to the first issuance of your Amex card abroad !
https://www.americanexpress.com/global-card-transfers/united-states.html
Transferring Funds to the USA:
Another point to remember is that transferring your foreign money to your new US account (for instance, to get your secured loan or secured credit card) can be a costly affair. Banks have 2 areas to make money off you:
Transfer fee: Usually a flat fee or a fixed percentage. This is the fee that is generally quite visible. Exchange Rate: The exchange rate your bank will use is quite different from the real exchange rate on the market. For example, the exchange rate between the EURO and the US DOLLAR might be 1.330 on the market, but your bank might only offer you 1.290. That is a 3% difference you might not see ! After doing some research, I settled on TransferWise. (https://transferwise.com/u/b6f15). This seems to be the best platform so far for people in Europe (incl. the UK) to send money to the US. (Or from UK -> EU and vice versa).
It takes a few days longer than most bank transfers, but other than that, I have found it faultless and easy to use. The people behind TransferWise are those that built Skype.
Little disclaimer: The URL provided (https://transferwise.com/u/b6f15) is linked to my account and will allow me to accumulate friend referral benefits.
There are other platforms that outperform high-street banks and Paypal, please feel free to comment below to add your experiences (and from where to where you sent the money). I would find it useful to add information on how to send money from Non-EU countries, and also how to send money to the foreign spouse / fiancee.
Reading Tips:
http://www.myfico.com/CreditEducation/articles/
http://www.freescore.com/good-bad-credit-score-range.aspx

Filed DEC 26 2019, Interview JAN 26 2021, Oath JAN 26 2021 🙂 
All done 😉 

Filed DEC 26 2019, Interview JAN 26 2021, Oath JAN 26 2021 🙂 
All done 😉 

Got a notification the other day, interview scheduled JAN 26, 2021. Filed DEC 26, 2019.

1. Do it today, and open more than 1 if you can. Try opening up another line of credit as well, if possible. You need a diverse spread of lines of credit
2.1 There are rumors this will change, but I believe it's still a good option today, so do it now.
2.2 Depends on the financial institution I suppose. You should be fine if you're an LPR.
 
With just one year of credit history, buying a home could be an issue. But as you'd be buying with your spouse, her credit history will help out a lot for the "age of credit".

Introduction
Seeing how building a credit score is one of the biggest hurdles for an immigrant to tackle, and every now and then you see a topic pop up with a question about things like credit cards, buying a car and so on, I thought it would be a good idea to have a single topic to gather all tips and tricks in a single thread.
In time, maybe we can incorporate this info into one of VJ's Guides...
What is Credit Score
The US Credit Score is a number between 300 and 850, which reflects your ability to handle credit. The official score is often referred to as FICO (Fair, Isaac & Company)
There are 5 items that contribute to your score, each with a different weight:
Payment History (35%): Any history of bankruptcy, liens, judgments, settlements, charge offs, repossessions, foreclosures, and late payments drops your score. Revolving Debt (30%): The amount borrowed versus available credit. Think Credit Cards. Length of Credit History (15%): Both the average time of accounts, as well as the age of the oldest account. These must be ACTIVE accounts. Types of Credit (10%): installment, revolving, consumer finance, mortgage. If you handle more than 1 type of credit, this is good. Inquiries and New Debt (10%): When making an inquiry for credit, such as credit card applications, shopping for a loan etc, your rating goes down. Why is this good or bad as a new immigrant
As an immigrant you do not have a history in the US. This means you DO NOT HAVE a US credit rating when you arrive.
The positive thing is that you also do not have any BAD payment history.
The bad thing is, credit is a catch-22 problem in the US: You can't get credit without a good credit score, and you can't get a good credit score without having and using credit.
Any cards, accounts or history you have or had abroad do not count. (One known exception, see below)
What credit score ranges are there
Excellent credit score: 720 and Up Good credit score: 680 to 719 Average credit score: 620 to 679 Poor credit score: 580 to 619 Bad credit score: 500 to 579 Miserable credit score: Less than 500 How to get credit so you have items reporting into your credit score
A lot depends on your personal situation. Are you married, employed, do you have cash to open an account, and so on.
Typically, you will need to find a bank or credit union first, so ask around.
Once you have found a suitable financial institution, ask for a "Secured Credit Card". This is a card with a certain spending limit, which amount you secure through the financial institution by depositing the cash equivalent on a locked account.
You can then use the assigned credit, and after the first month's statement is due, you will have items reporting into your credit score. You now have payment history, length of credit and revolving debt.
Usually, your bank will replace the secured credit card with a regular credit card, increasing the limit on the card. Expect this after a few months, if you pay your statements on time.
People coming in through a work visa can often get a company credit card, which makes life a lot easier!
If your spouse has a good credit rating, the financial institution might also allow him/her to co-sign the credit card application. Check with the financial institution on the requirements they have. In theory any person (in the US) with good credit can co-sign, so a family friend, parents etc are fine too.
How to get from decent to excellent credit
OK, now that we have some things reporting into our credit score, how can we boost that score up?
1. The number one rule: PAY EVERYTHING ON TIME, IN FULL
2. Specifically to credit cards, the use of credit is important, more specifically, how much do you charge to your card:
Per account, avoid exceeding 33% of assigned credit. Some people say it's best to have a utilization of 12-20% (Some say between 1 and 20%) The utilization is based on the amount due on the reporting date. If you buy a 900$ television on a 1000$ credit, but deposit 700$ before the reporting date, your utilization is only 200$, or 20% (Can anyone confirm?) Do not leave credit cards unused (When not using credit, this hurts your score). If you have a 500$ secured card, you could for instance use it to put fuel in your car every week or so. Do not close old credit cards, this hurts your account age! 3. Diversify. Get at least one credit card and one installment loan. You can get a secured installment loan through your financial institution. If you want to buy a TV for 1000$, but that 1000$ in a secured account at the bank, and have them give you a loan over 12 months against that deposit.
Another option, typically when buying a car, is to get a car from a dealer who gives credit to "anyone". But ALWAYS ask if they report to the credit agencies (CRAs). Then pay the remainder of the loan after at least SIX months. The intrest rate will be ridiculous (over 20% in most cases).
According to Equifax, having at least 4 (different) lines of credit are required to get a really good score (Credit Card, Mortgage, Car Payment, Student Loans, Personal Loans, Home Equity Loan for Credit, ...)
My credit union actually suggested the following:
a) Get a "personal secured loan" to buy a car. (basically: Put the money you would pay as a cash downpayment on a car, into a secured loan for yourself)
b) After 90d of employment, you qualify for a "first time borrower" loan. Bring in the title to the car, and you can use the title to borrow against. You'd get a mediocre intrest rate (C-level credit).
This would give you 3 lines of credit after about 4 months, which is pretty good !
Age of Credit Accounts
Even if you have a decent credit score after a few months, when the time comes you want to buy your first car, you might get rejected quite a bit on your loan, due to "no sufficient credit history". Although the average age of accounts only counts for 15% of the credit score algorithm, financial institutions will count this as one of the major factors for credit decisions. The solution is to get a large downpayment, and preferably work with the financial institution directly, not through a dealer.
Credit Reporting Agencies
There are 3 major CRAs in the US:
TransUnion (http://www.transunion.com) Equifax (http://www.equifax.com) Experian (http://www.experian.com) They all have minor differences in how they calculate your credit score. By law, they are (each) required to give you one free credit report per year.
What can affect your score negatively?
(From TransUnion) Wondering when judgments and bankruptcies will no longer appear on your credit reports? Check the dates on records in your credit report. Generally, here's how long judgments and bankruptcies remain on a credit report: Bankruptcy Generally, Chapter 7, 11 and 13 bankruptcies appear as public record items on your credit report for up to 10 years after filing. Chapter 13 bankruptcy records are sometimes taken off sooner, 7 years after filing, depending on the credit reporting company’s policy. When you receive an Order of Discharge in bankruptcy, your creditors should mark those accounts that were discharged as "Included in Bankruptcy" and they will stay on your report for up to 7 years. Charge-off accounts Generally, if a delinquent account is charged-off, the charge-off record appears on your credit report for up to 7 years. Closed accounts Generally, negative or derogatory information about delinquent accounts remain on your credit reports for up to 7 years. Positive closed accounts (without late payments or other delinquencies) may appear for longer than 7 years. Collection accounts Generally, accounts sent to collections will be listed on your credit report for up to 7 years, beginning 181 days from the most recent delinquent period before the collection activity. A collection account’s status should change to "paid collection" once you've paid off the entire amount. If you settle with the collection agency for less, your credit report may list the account as "settled for less than full balance." Inquiries When a creditor or lender checks your credit in connection with an application, you'll usually see a "hard inquiry" on your credit report. Generally, these stay on your report for as long as two years, and may lower your credit score slightly. When a creditor reviews the credit report of an existing customer, or when you access your own data online, a "soft inquiry" typically shows up on your credit report. Soft inquiries don't lower your credit score or appear to businesses checking your credit. Judgments Generally, most court judgments, including small claims, civil and child support, stay on your credit reports for up to 7 years from the date they were filed. Late payments Generally, if you make a payment late, the delinquency could appear on your credit report for up to 7 years. Tax liens Under federal law, city, county, state and federal tax liens could stay on your report indefinitely. Generally, after the lien is paid, the record of it stays on your credit reports for up to 7 years from the payment date. One of the most important of these are the inquiries. If you want to get store credit or a new credit card, DO NOT JUST APPLY for one. Every time you apply for credit, your score will drop a few points, and the inquiry itself (Often referred to as "hard inquiry) stays on your report. Lenders who see systematic hard inquiries on a report see this as negative.
However, when shopping for a car (and thus car loans), all hard inquiries within 14 days are reported as one. When buying a house and a mortgage, they are grouped into one for 30 days.
Major Tip:
VISA and MasterCard are basically payment PLATFORMS, where local financial institutions issue the credit through the platform. Your credit history and account reside with that financial institution.
American Express (AMEX) however, issues the credit itself (Sometimes through local companies, but the credit file is shared with Amex --> This appears NOT to be the case: If cards in your country are not issued by American Express directly (Global Network Cards), they cannot be transferred.).
If you have an Amex abroad, and have had it for more than 12 months, you can (in most cases) request a US Amex card to replace your foreign card. The advantage is, with a good foreign history, chances of approval are very high, plus, the age of your account goes back to the first issuance of your Amex card abroad !
https://www.americanexpress.com/global-card-transfers/united-states.html
Transferring Funds to the USA:
Another point to remember is that transferring your foreign money to your new US account (for instance, to get your secured loan or secured credit card) can be a costly affair. Banks have 2 areas to make money off you:
Transfer fee: Usually a flat fee or a fixed percentage. This is the fee that is generally quite visible. Exchange Rate: The exchange rate your bank will use is quite different from the real exchange rate on the market. For example, the exchange rate between the EURO and the US DOLLAR might be 1.330 on the market, but your bank might only offer you 1.290. That is a 3% difference you might not see ! After doing some research, I settled on TransferWise. (https://transferwise.com/u/b6f15). This seems to be the best platform so far for people in Europe (incl. the UK) to send money to the US. (Or from UK -> EU and vice versa).
It takes a few days longer than most bank transfers, but other than that, I have found it faultless and easy to use. The people behind TransferWise are those that built Skype.
Little disclaimer: The URL provided (https://transferwise.com/u/b6f15) is linked to my account and will allow me to accumulate friend referral benefits.
There are other platforms that outperform high-street banks and Paypal, please feel free to comment below to add your experiences (and from where to where you sent the money). I would find it useful to add information on how to send money from Non-EU countries, and also how to send money to the foreign spouse / fiancee.
Reading Tips:
http://www.myfico.com/CreditEducation/articles/
http://www.freescore.com/good-bad-credit-score-range.aspx

Open your own CC as soon as possible. Then add more cards over time, but do it at a time where you're fairly certain you won't need to open another line of credit for 3-4 months (such as mortgage, car loan, ...). 
If you're planning to get a car, finance it (even if you can pay it in cash), just to get the line of credit on your report. Let it report in for 6-8 months, then you can liquidate it if you like. You don't have to finance the whole purchase amount either, by the way, you likely get a better rate if you put 50% cash down and only finance 50% of the car, for example. I think with "lower" credit, most lenders will give you a break on the rate when you put down more than 30% in cash.

Introduction
Seeing how building a credit score is one of the biggest hurdles for an immigrant to tackle, and every now and then you see a topic pop up with a question about things like credit cards, buying a car and so on, I thought it would be a good idea to have a single topic to gather all tips and tricks in a single thread.
In time, maybe we can incorporate this info into one of VJ's Guides...
What is Credit Score
The US Credit Score is a number between 300 and 850, which reflects your ability to handle credit. The official score is often referred to as FICO (Fair, Isaac & Company)
There are 5 items that contribute to your score, each with a different weight:
Payment History (35%): Any history of bankruptcy, liens, judgments, settlements, charge offs, repossessions, foreclosures, and late payments drops your score. Revolving Debt (30%): The amount borrowed versus available credit. Think Credit Cards. Length of Credit History (15%): Both the average time of accounts, as well as the age of the oldest account. These must be ACTIVE accounts. Types of Credit (10%): installment, revolving, consumer finance, mortgage. If you handle more than 1 type of credit, this is good. Inquiries and New Debt (10%): When making an inquiry for credit, such as credit card applications, shopping for a loan etc, your rating goes down. Why is this good or bad as a new immigrant
As an immigrant you do not have a history in the US. This means you DO NOT HAVE a US credit rating when you arrive.
The positive thing is that you also do not have any BAD payment history.
The bad thing is, credit is a catch-22 problem in the US: You can't get credit without a good credit score, and you can't get a good credit score without having and using credit.
Any cards, accounts or history you have or had abroad do not count. (One known exception, see below)
What credit score ranges are there
Excellent credit score: 720 and Up Good credit score: 680 to 719 Average credit score: 620 to 679 Poor credit score: 580 to 619 Bad credit score: 500 to 579 Miserable credit score: Less than 500 How to get credit so you have items reporting into your credit score
A lot depends on your personal situation. Are you married, employed, do you have cash to open an account, and so on.
Typically, you will need to find a bank or credit union first, so ask around.
Once you have found a suitable financial institution, ask for a "Secured Credit Card". This is a card with a certain spending limit, which amount you secure through the financial institution by depositing the cash equivalent on a locked account.
You can then use the assigned credit, and after the first month's statement is due, you will have items reporting into your credit score. You now have payment history, length of credit and revolving debt.
Usually, your bank will replace the secured credit card with a regular credit card, increasing the limit on the card. Expect this after a few months, if you pay your statements on time.
People coming in through a work visa can often get a company credit card, which makes life a lot easier!
If your spouse has a good credit rating, the financial institution might also allow him/her to co-sign the credit card application. Check with the financial institution on the requirements they have. In theory any person (in the US) with good credit can co-sign, so a family friend, parents etc are fine too.
How to get from decent to excellent credit
OK, now that we have some things reporting into our credit score, how can we boost that score up?
1. The number one rule: PAY EVERYTHING ON TIME, IN FULL
2. Specifically to credit cards, the use of credit is important, more specifically, how much do you charge to your card:
Per account, avoid exceeding 33% of assigned credit. Some people say it's best to have a utilization of 12-20% (Some say between 1 and 20%) The utilization is based on the amount due on the reporting date. If you buy a 900$ television on a 1000$ credit, but deposit 700$ before the reporting date, your utilization is only 200$, or 20% (Can anyone confirm?) Do not leave credit cards unused (When not using credit, this hurts your score). If you have a 500$ secured card, you could for instance use it to put fuel in your car every week or so. Do not close old credit cards, this hurts your account age! 3. Diversify. Get at least one credit card and one installment loan. You can get a secured installment loan through your financial institution. If you want to buy a TV for 1000$, but that 1000$ in a secured account at the bank, and have them give you a loan over 12 months against that deposit.
Another option, typically when buying a car, is to get a car from a dealer who gives credit to "anyone". But ALWAYS ask if they report to the credit agencies (CRAs). Then pay the remainder of the loan after at least SIX months. The intrest rate will be ridiculous (over 20% in most cases).
According to Equifax, having at least 4 (different) lines of credit are required to get a really good score (Credit Card, Mortgage, Car Payment, Student Loans, Personal Loans, Home Equity Loan for Credit, ...)
My credit union actually suggested the following:
a) Get a "personal secured loan" to buy a car. (basically: Put the money you would pay as a cash downpayment on a car, into a secured loan for yourself)
b) After 90d of employment, you qualify for a "first time borrower" loan. Bring in the title to the car, and you can use the title to borrow against. You'd get a mediocre intrest rate (C-level credit).
This would give you 3 lines of credit after about 4 months, which is pretty good !
Age of Credit Accounts
Even if you have a decent credit score after a few months, when the time comes you want to buy your first car, you might get rejected quite a bit on your loan, due to "no sufficient credit history". Although the average age of accounts only counts for 15% of the credit score algorithm, financial institutions will count this as one of the major factors for credit decisions. The solution is to get a large downpayment, and preferably work with the financial institution directly, not through a dealer.
Credit Reporting Agencies
There are 3 major CRAs in the US:
TransUnion (http://www.transunion.com) Equifax (http://www.equifax.com) Experian (http://www.experian.com) They all have minor differences in how they calculate your credit score. By law, they are (each) required to give you one free credit report per year.
What can affect your score negatively?
(From TransUnion) Wondering when judgments and bankruptcies will no longer appear on your credit reports? Check the dates on records in your credit report. Generally, here's how long judgments and bankruptcies remain on a credit report: Bankruptcy Generally, Chapter 7, 11 and 13 bankruptcies appear as public record items on your credit report for up to 10 years after filing. Chapter 13 bankruptcy records are sometimes taken off sooner, 7 years after filing, depending on the credit reporting company’s policy. When you receive an Order of Discharge in bankruptcy, your creditors should mark those accounts that were discharged as "Included in Bankruptcy" and they will stay on your report for up to 7 years. Charge-off accounts Generally, if a delinquent account is charged-off, the charge-off record appears on your credit report for up to 7 years. Closed accounts Generally, negative or derogatory information about delinquent accounts remain on your credit reports for up to 7 years. Positive closed accounts (without late payments or other delinquencies) may appear for longer than 7 years. Collection accounts Generally, accounts sent to collections will be listed on your credit report for up to 7 years, beginning 181 days from the most recent delinquent period before the collection activity. A collection account’s status should change to "paid collection" once you've paid off the entire amount. If you settle with the collection agency for less, your credit report may list the account as "settled for less than full balance." Inquiries When a creditor or lender checks your credit in connection with an application, you'll usually see a "hard inquiry" on your credit report. Generally, these stay on your report for as long as two years, and may lower your credit score slightly. When a creditor reviews the credit report of an existing customer, or when you access your own data online, a "soft inquiry" typically shows up on your credit report. Soft inquiries don't lower your credit score or appear to businesses checking your credit. Judgments Generally, most court judgments, including small claims, civil and child support, stay on your credit reports for up to 7 years from the date they were filed. Late payments Generally, if you make a payment late, the delinquency could appear on your credit report for up to 7 years. Tax liens Under federal law, city, county, state and federal tax liens could stay on your report indefinitely. Generally, after the lien is paid, the record of it stays on your credit reports for up to 7 years from the payment date. One of the most important of these are the inquiries. If you want to get store credit or a new credit card, DO NOT JUST APPLY for one. Every time you apply for credit, your score will drop a few points, and the inquiry itself (Often referred to as "hard inquiry) stays on your report. Lenders who see systematic hard inquiries on a report see this as negative.
However, when shopping for a car (and thus car loans), all hard inquiries within 14 days are reported as one. When buying a house and a mortgage, they are grouped into one for 30 days.
Major Tip:
VISA and MasterCard are basically payment PLATFORMS, where local financial institutions issue the credit through the platform. Your credit history and account reside with that financial institution.
American Express (AMEX) however, issues the credit itself (Sometimes through local companies, but the credit file is shared with Amex --> This appears NOT to be the case: If cards in your country are not issued by American Express directly (Global Network Cards), they cannot be transferred.).
If you have an Amex abroad, and have had it for more than 12 months, you can (in most cases) request a US Amex card to replace your foreign card. The advantage is, with a good foreign history, chances of approval are very high, plus, the age of your account goes back to the first issuance of your Amex card abroad !
https://www.americanexpress.com/global-card-transfers/united-states.html
Transferring Funds to the USA:
Another point to remember is that transferring your foreign money to your new US account (for instance, to get your secured loan or secured credit card) can be a costly affair. Banks have 2 areas to make money off you:
Transfer fee: Usually a flat fee or a fixed percentage. This is the fee that is generally quite visible. Exchange Rate: The exchange rate your bank will use is quite different from the real exchange rate on the market. For example, the exchange rate between the EURO and the US DOLLAR might be 1.330 on the market, but your bank might only offer you 1.290. That is a 3% difference you might not see ! After doing some research, I settled on TransferWise. (https://transferwise.com/u/b6f15). This seems to be the best platform so far for people in Europe (incl. the UK) to send money to the US. (Or from UK -> EU and vice versa).
It takes a few days longer than most bank transfers, but other than that, I have found it faultless and easy to use. The people behind TransferWise are those that built Skype.
Little disclaimer: The URL provided (https://transferwise.com/u/b6f15) is linked to my account and will allow me to accumulate friend referral benefits.
There are other platforms that outperform high-street banks and Paypal, please feel free to comment below to add your experiences (and from where to where you sent the money). I would find it useful to add information on how to send money from Non-EU countries, and also how to send money to the foreign spouse / fiancee.
Reading Tips:
http://www.myfico.com/CreditEducation/articles/
http://www.freescore.com/good-bad-credit-score-range.aspx

Yes, the US credit system is beyond stupid.
 
Checking account is the same as a debit account. Typically, there is 0.0% interest on those, so just keep a minimal amount of money on there.
Savings account is where you can get some interest, but you can only transfer money out of it a certain number of times per month (I think it's 5 transfers out)
 
The minimum you want to keep accounts open, is 6 reporting periods on your credit report. To be safe, that's 8 months after you've opened the loan, so pay it for 9 at least, then you can pay it off.
For credit cards, NEVER close those accounts, especially not your oldest one.
 
You can pay anything you want on your credit card. Use between 1 and 30%. So if your electricity bill is $100 a month, and they accept credit card payments, use that. 30% of $1000 is $300, by the way.
 
Over time, you'll want to open more credit lines. If you want to buy a house at some point, you'll need a strong credit history. 
 
There are lots of small tips and tricks in this thread, so look around and use them as you can.
For some lines of credit (loans, mortgage, etc) you may need prior history to build up to a certain value. e.g. for a car loan, you may need to start with a $10,000 loan before the bank will give you a $25,000 loan for your next car. 
 
You do not need to stay with the same bank for all your credit lines. Avoid using credit cards linked to a store, unless it comes with a specific benefit to you, such as extra discount, or loyalty credits at that store you are sure to use a lot. Popular good choices are airlines (research which airline one you'd most likely use), and then use that card to get free airmiles, so you can fly back to Europe in Business Class for "free".
 
You need to keep a clean credit history forever. If you miss a payment or are evicted from your rental home, it stays on your credit file for at least 7 years, and will make your life very hard. But on the other hand, a diligent use of your credit will raise your score, and you'll get very good rates for when you do need credit, e.g. to buy a car or a home. The rates may be so good that it's even cheaper than paying cash (inflation and savings account interest).
 
You only need one secured loan. After 6-7 months or so, you should see a nice increase in your score. Perhaps you want to buy a new TV or washer/dryer, so use the 0% interest some stores have to buy it. That's another loan on your report that will increase your score over time.
 
Little formal disclaimer though: I am not a tax advisor nor financial expert, my suggestions here stem from personal research and experience, and should in no shape or form be construed as being applicable to your situation etc etc etc. Seek professional help to get the most accurate information for your personal situation.

Practically:
Go to a bank or Credit Union (CU's usually have better rates) and open a checking account and savings account. You'll typically get a debit card and checks. Use TransferWise (https://transferwise.com/u/b6f15) to transfer money to your new US account. Then use some of that money to get a "secured credit card". They'll take your money, put it in a blocked account, and use it as collateral against the credit they grant you on that credit card. Make sure to use the card monthly, between 1 and 30%, for optimal results.
I also opened a personal loan using the same principle. Secured Loan. You put some of your savings in an account, they block it as collateral against your loan, and you pay off the loan. You're pretty much just paying the bank interest, but it's a great way to build credit. Say you put $5000 in a loan like that, you get $5000 back right away, and as you pay off the loan over the next year or 2, you get your original $5000 back as you pay off the principal.
 
Yes, get a debit card. Several utilities providers only accept debit, ARCO gas stations only accept debit cards, and so on. If you're near a Target grocery store, and like their offering, you can get a Target RedCard (Debit card) and get 5% off.
 
Please note, you may not be able to open accounts in the US until you have your US Driver's license (or at least an ID card). So when you arrive stateside, go to your local Social Security Office, and when you have your SSN, go to the DMV to get an ID card (fastest) or schedule a driving test for your driver's license (you should study for that, lots of little things are different from EU). You'll need a state-issued ID card with SSN to open a bank account in most cases, and for sure, to have them report into your credit report (which is based on SSN).
 
SSN = Social Security Number

To answer your main question, wether you NEED to build credit? YES YES YES YES YES !
Everything here works on that dumb credit score. Want to lease a house? You need good credit. Want a job? Let's check your credit report. Want to get a license for something? Credit score OK? 
 
Even getting your utilities connected requires a good credit score, or you'll pay through your nose to get that done. 
So yes, get several lines of credit, and then use your good habits to pay everything on time, and you'll lead a comfortable life, and will have access to loans if you ever DO need it.

Introduction
Seeing how building a credit score is one of the biggest hurdles for an immigrant to tackle, and every now and then you see a topic pop up with a question about things like credit cards, buying a car and so on, I thought it would be a good idea to have a single topic to gather all tips and tricks in a single thread.
In time, maybe we can incorporate this info into one of VJ's Guides...
What is Credit Score
The US Credit Score is a number between 300 and 850, which reflects your ability to handle credit. The official score is often referred to as FICO (Fair, Isaac & Company)
There are 5 items that contribute to your score, each with a different weight:
Payment History (35%): Any history of bankruptcy, liens, judgments, settlements, charge offs, repossessions, foreclosures, and late payments drops your score. Revolving Debt (30%): The amount borrowed versus available credit. Think Credit Cards. Length of Credit History (15%): Both the average time of accounts, as well as the age of the oldest account. These must be ACTIVE accounts. Types of Credit (10%): installment, revolving, consumer finance, mortgage. If you handle more than 1 type of credit, this is good. Inquiries and New Debt (10%): When making an inquiry for credit, such as credit card applications, shopping for a loan etc, your rating goes down. Why is this good or bad as a new immigrant
As an immigrant you do not have a history in the US. This means you DO NOT HAVE a US credit rating when you arrive.
The positive thing is that you also do not have any BAD payment history.
The bad thing is, credit is a catch-22 problem in the US: You can't get credit without a good credit score, and you can't get a good credit score without having and using credit.
Any cards, accounts or history you have or had abroad do not count. (One known exception, see below)
What credit score ranges are there
Excellent credit score: 720 and Up Good credit score: 680 to 719 Average credit score: 620 to 679 Poor credit score: 580 to 619 Bad credit score: 500 to 579 Miserable credit score: Less than 500 How to get credit so you have items reporting into your credit score
A lot depends on your personal situation. Are you married, employed, do you have cash to open an account, and so on.
Typically, you will need to find a bank or credit union first, so ask around.
Once you have found a suitable financial institution, ask for a "Secured Credit Card". This is a card with a certain spending limit, which amount you secure through the financial institution by depositing the cash equivalent on a locked account.
You can then use the assigned credit, and after the first month's statement is due, you will have items reporting into your credit score. You now have payment history, length of credit and revolving debt.
Usually, your bank will replace the secured credit card with a regular credit card, increasing the limit on the card. Expect this after a few months, if you pay your statements on time.
People coming in through a work visa can often get a company credit card, which makes life a lot easier!
If your spouse has a good credit rating, the financial institution might also allow him/her to co-sign the credit card application. Check with the financial institution on the requirements they have. In theory any person (in the US) with good credit can co-sign, so a family friend, parents etc are fine too.
How to get from decent to excellent credit
OK, now that we have some things reporting into our credit score, how can we boost that score up?
1. The number one rule: PAY EVERYTHING ON TIME, IN FULL
2. Specifically to credit cards, the use of credit is important, more specifically, how much do you charge to your card:
Per account, avoid exceeding 33% of assigned credit. Some people say it's best to have a utilization of 12-20% (Some say between 1 and 20%) The utilization is based on the amount due on the reporting date. If you buy a 900$ television on a 1000$ credit, but deposit 700$ before the reporting date, your utilization is only 200$, or 20% (Can anyone confirm?) Do not leave credit cards unused (When not using credit, this hurts your score). If you have a 500$ secured card, you could for instance use it to put fuel in your car every week or so. Do not close old credit cards, this hurts your account age! 3. Diversify. Get at least one credit card and one installment loan. You can get a secured installment loan through your financial institution. If you want to buy a TV for 1000$, but that 1000$ in a secured account at the bank, and have them give you a loan over 12 months against that deposit.
Another option, typically when buying a car, is to get a car from a dealer who gives credit to "anyone". But ALWAYS ask if they report to the credit agencies (CRAs). Then pay the remainder of the loan after at least SIX months. The intrest rate will be ridiculous (over 20% in most cases).
According to Equifax, having at least 4 (different) lines of credit are required to get a really good score (Credit Card, Mortgage, Car Payment, Student Loans, Personal Loans, Home Equity Loan for Credit, ...)
My credit union actually suggested the following:
a) Get a "personal secured loan" to buy a car. (basically: Put the money you would pay as a cash downpayment on a car, into a secured loan for yourself)
b) After 90d of employment, you qualify for a "first time borrower" loan. Bring in the title to the car, and you can use the title to borrow against. You'd get a mediocre intrest rate (C-level credit).
This would give you 3 lines of credit after about 4 months, which is pretty good !
Age of Credit Accounts
Even if you have a decent credit score after a few months, when the time comes you want to buy your first car, you might get rejected quite a bit on your loan, due to "no sufficient credit history". Although the average age of accounts only counts for 15% of the credit score algorithm, financial institutions will count this as one of the major factors for credit decisions. The solution is to get a large downpayment, and preferably work with the financial institution directly, not through a dealer.
Credit Reporting Agencies
There are 3 major CRAs in the US:
TransUnion (http://www.transunion.com) Equifax (http://www.equifax.com) Experian (http://www.experian.com) They all have minor differences in how they calculate your credit score. By law, they are (each) required to give you one free credit report per year.
What can affect your score negatively?
(From TransUnion) Wondering when judgments and bankruptcies will no longer appear on your credit reports? Check the dates on records in your credit report. Generally, here's how long judgments and bankruptcies remain on a credit report: Bankruptcy Generally, Chapter 7, 11 and 13 bankruptcies appear as public record items on your credit report for up to 10 years after filing. Chapter 13 bankruptcy records are sometimes taken off sooner, 7 years after filing, depending on the credit reporting company’s policy. When you receive an Order of Discharge in bankruptcy, your creditors should mark those accounts that were discharged as "Included in Bankruptcy" and they will stay on your report for up to 7 years. Charge-off accounts Generally, if a delinquent account is charged-off, the charge-off record appears on your credit report for up to 7 years. Closed accounts Generally, negative or derogatory information about delinquent accounts remain on your credit reports for up to 7 years. Positive closed accounts (without late payments or other delinquencies) may appear for longer than 7 years. Collection accounts Generally, accounts sent to collections will be listed on your credit report for up to 7 years, beginning 181 days from the most recent delinquent period before the collection activity. A collection account’s status should change to "paid collection" once you've paid off the entire amount. If you settle with the collection agency for less, your credit report may list the account as "settled for less than full balance." Inquiries When a creditor or lender checks your credit in connection with an application, you'll usually see a "hard inquiry" on your credit report. Generally, these stay on your report for as long as two years, and may lower your credit score slightly. When a creditor reviews the credit report of an existing customer, or when you access your own data online, a "soft inquiry" typically shows up on your credit report. Soft inquiries don't lower your credit score or appear to businesses checking your credit. Judgments Generally, most court judgments, including small claims, civil and child support, stay on your credit reports for up to 7 years from the date they were filed. Late payments Generally, if you make a payment late, the delinquency could appear on your credit report for up to 7 years. Tax liens Under federal law, city, county, state and federal tax liens could stay on your report indefinitely. Generally, after the lien is paid, the record of it stays on your credit reports for up to 7 years from the payment date. One of the most important of these are the inquiries. If you want to get store credit or a new credit card, DO NOT JUST APPLY for one. Every time you apply for credit, your score will drop a few points, and the inquiry itself (Often referred to as "hard inquiry) stays on your report. Lenders who see systematic hard inquiries on a report see this as negative.
However, when shopping for a car (and thus car loans), all hard inquiries within 14 days are reported as one. When buying a house and a mortgage, they are grouped into one for 30 days.
Major Tip:
VISA and MasterCard are basically payment PLATFORMS, where local financial institutions issue the credit through the platform. Your credit history and account reside with that financial institution.
American Express (AMEX) however, issues the credit itself (Sometimes through local companies, but the credit file is shared with Amex --> This appears NOT to be the case: If cards in your country are not issued by American Express directly (Global Network Cards), they cannot be transferred.).
If you have an Amex abroad, and have had it for more than 12 months, you can (in most cases) request a US Amex card to replace your foreign card. The advantage is, with a good foreign history, chances of approval are very high, plus, the age of your account goes back to the first issuance of your Amex card abroad !
https://www.americanexpress.com/global-card-transfers/united-states.html
Transferring Funds to the USA:
Another point to remember is that transferring your foreign money to your new US account (for instance, to get your secured loan or secured credit card) can be a costly affair. Banks have 2 areas to make money off you:
Transfer fee: Usually a flat fee or a fixed percentage. This is the fee that is generally quite visible. Exchange Rate: The exchange rate your bank will use is quite different from the real exchange rate on the market. For example, the exchange rate between the EURO and the US DOLLAR might be 1.330 on the market, but your bank might only offer you 1.290. That is a 3% difference you might not see ! After doing some research, I settled on TransferWise. (https://transferwise.com/u/b6f15). This seems to be the best platform so far for people in Europe (incl. the UK) to send money to the US. (Or from UK -> EU and vice versa).
It takes a few days longer than most bank transfers, but other than that, I have found it faultless and easy to use. The people behind TransferWise are those that built Skype.
Little disclaimer: The URL provided (https://transferwise.com/u/b6f15) is linked to my account and will allow me to accumulate friend referral benefits.
There are other platforms that outperform high-street banks and Paypal, please feel free to comment below to add your experiences (and from where to where you sent the money). I would find it useful to add information on how to send money from Non-EU countries, and also how to send money to the foreign spouse / fiancee.
Reading Tips:
http://www.myfico.com/CreditEducation/articles/
http://www.freescore.com/good-bad-credit-score-range.aspx

Introduction
Seeing how building a credit score is one of the biggest hurdles for an immigrant to tackle, and every now and then you see a topic pop up with a question about things like credit cards, buying a car and so on, I thought it would be a good idea to have a single topic to gather all tips and tricks in a single thread.
In time, maybe we can incorporate this info into one of VJ's Guides...
What is Credit Score
The US Credit Score is a number between 300 and 850, which reflects your ability to handle credit. The official score is often referred to as FICO (Fair, Isaac & Company)
There are 5 items that contribute to your score, each with a different weight:
Payment History (35%): Any history of bankruptcy, liens, judgments, settlements, charge offs, repossessions, foreclosures, and late payments drops your score. Revolving Debt (30%): The amount borrowed versus available credit. Think Credit Cards. Length of Credit History (15%): Both the average time of accounts, as well as the age of the oldest account. These must be ACTIVE accounts. Types of Credit (10%): installment, revolving, consumer finance, mortgage. If you handle more than 1 type of credit, this is good. Inquiries and New Debt (10%): When making an inquiry for credit, such as credit card applications, shopping for a loan etc, your rating goes down. Why is this good or bad as a new immigrant
As an immigrant you do not have a history in the US. This means you DO NOT HAVE a US credit rating when you arrive.
The positive thing is that you also do not have any BAD payment history.
The bad thing is, credit is a catch-22 problem in the US: You can't get credit without a good credit score, and you can't get a good credit score without having and using credit.
Any cards, accounts or history you have or had abroad do not count. (One known exception, see below)
What credit score ranges are there
Excellent credit score: 720 and Up Good credit score: 680 to 719 Average credit score: 620 to 679 Poor credit score: 580 to 619 Bad credit score: 500 to 579 Miserable credit score: Less than 500 How to get credit so you have items reporting into your credit score
A lot depends on your personal situation. Are you married, employed, do you have cash to open an account, and so on.
Typically, you will need to find a bank or credit union first, so ask around.
Once you have found a suitable financial institution, ask for a "Secured Credit Card". This is a card with a certain spending limit, which amount you secure through the financial institution by depositing the cash equivalent on a locked account.
You can then use the assigned credit, and after the first month's statement is due, you will have items reporting into your credit score. You now have payment history, length of credit and revolving debt.
Usually, your bank will replace the secured credit card with a regular credit card, increasing the limit on the card. Expect this after a few months, if you pay your statements on time.
People coming in through a work visa can often get a company credit card, which makes life a lot easier!
If your spouse has a good credit rating, the financial institution might also allow him/her to co-sign the credit card application. Check with the financial institution on the requirements they have. In theory any person (in the US) with good credit can co-sign, so a family friend, parents etc are fine too.
How to get from decent to excellent credit
OK, now that we have some things reporting into our credit score, how can we boost that score up?
1. The number one rule: PAY EVERYTHING ON TIME, IN FULL
2. Specifically to credit cards, the use of credit is important, more specifically, how much do you charge to your card:
Per account, avoid exceeding 33% of assigned credit. Some people say it's best to have a utilization of 12-20% (Some say between 1 and 20%) The utilization is based on the amount due on the reporting date. If you buy a 900$ television on a 1000$ credit, but deposit 700$ before the reporting date, your utilization is only 200$, or 20% (Can anyone confirm?) Do not leave credit cards unused (When not using credit, this hurts your score). If you have a 500$ secured card, you could for instance use it to put fuel in your car every week or so. Do not close old credit cards, this hurts your account age! 3. Diversify. Get at least one credit card and one installment loan. You can get a secured installment loan through your financial institution. If you want to buy a TV for 1000$, but that 1000$ in a secured account at the bank, and have them give you a loan over 12 months against that deposit.
Another option, typically when buying a car, is to get a car from a dealer who gives credit to "anyone". But ALWAYS ask if they report to the credit agencies (CRAs). Then pay the remainder of the loan after at least SIX months. The intrest rate will be ridiculous (over 20% in most cases).
According to Equifax, having at least 4 (different) lines of credit are required to get a really good score (Credit Card, Mortgage, Car Payment, Student Loans, Personal Loans, Home Equity Loan for Credit, ...)
My credit union actually suggested the following:
a) Get a "personal secured loan" to buy a car. (basically: Put the money you would pay as a cash downpayment on a car, into a secured loan for yourself)
b) After 90d of employment, you qualify for a "first time borrower" loan. Bring in the title to the car, and you can use the title to borrow against. You'd get a mediocre intrest rate (C-level credit).
This would give you 3 lines of credit after about 4 months, which is pretty good !
Age of Credit Accounts
Even if you have a decent credit score after a few months, when the time comes you want to buy your first car, you might get rejected quite a bit on your loan, due to "no sufficient credit history". Although the average age of accounts only counts for 15% of the credit score algorithm, financial institutions will count this as one of the major factors for credit decisions. The solution is to get a large downpayment, and preferably work with the financial institution directly, not through a dealer.
Credit Reporting Agencies
There are 3 major CRAs in the US:
TransUnion (http://www.transunion.com) Equifax (http://www.equifax.com) Experian (http://www.experian.com) They all have minor differences in how they calculate your credit score. By law, they are (each) required to give you one free credit report per year.
What can affect your score negatively?
(From TransUnion) Wondering when judgments and bankruptcies will no longer appear on your credit reports? Check the dates on records in your credit report. Generally, here's how long judgments and bankruptcies remain on a credit report: Bankruptcy Generally, Chapter 7, 11 and 13 bankruptcies appear as public record items on your credit report for up to 10 years after filing. Chapter 13 bankruptcy records are sometimes taken off sooner, 7 years after filing, depending on the credit reporting company’s policy. When you receive an Order of Discharge in bankruptcy, your creditors should mark those accounts that were discharged as "Included in Bankruptcy" and they will stay on your report for up to 7 years. Charge-off accounts Generally, if a delinquent account is charged-off, the charge-off record appears on your credit report for up to 7 years. Closed accounts Generally, negative or derogatory information about delinquent accounts remain on your credit reports for up to 7 years. Positive closed accounts (without late payments or other delinquencies) may appear for longer than 7 years. Collection accounts Generally, accounts sent to collections will be listed on your credit report for up to 7 years, beginning 181 days from the most recent delinquent period before the collection activity. A collection account’s status should change to "paid collection" once you've paid off the entire amount. If you settle with the collection agency for less, your credit report may list the account as "settled for less than full balance." Inquiries When a creditor or lender checks your credit in connection with an application, you'll usually see a "hard inquiry" on your credit report. Generally, these stay on your report for as long as two years, and may lower your credit score slightly. When a creditor reviews the credit report of an existing customer, or when you access your own data online, a "soft inquiry" typically shows up on your credit report. Soft inquiries don't lower your credit score or appear to businesses checking your credit. Judgments Generally, most court judgments, including small claims, civil and child support, stay on your credit reports for up to 7 years from the date they were filed. Late payments Generally, if you make a payment late, the delinquency could appear on your credit report for up to 7 years. Tax liens Under federal law, city, county, state and federal tax liens could stay on your report indefinitely. Generally, after the lien is paid, the record of it stays on your credit reports for up to 7 years from the payment date. One of the most important of these are the inquiries. If you want to get store credit or a new credit card, DO NOT JUST APPLY for one. Every time you apply for credit, your score will drop a few points, and the inquiry itself (Often referred to as "hard inquiry) stays on your report. Lenders who see systematic hard inquiries on a report see this as negative.
However, when shopping for a car (and thus car loans), all hard inquiries within 14 days are reported as one. When buying a house and a mortgage, they are grouped into one for 30 days.
Major Tip:
VISA and MasterCard are basically payment PLATFORMS, where local financial institutions issue the credit through the platform. Your credit history and account reside with that financial institution.
American Express (AMEX) however, issues the credit itself (Sometimes through local companies, but the credit file is shared with Amex --> This appears NOT to be the case: If cards in your country are not issued by American Express directly (Global Network Cards), they cannot be transferred.).
If you have an Amex abroad, and have had it for more than 12 months, you can (in most cases) request a US Amex card to replace your foreign card. The advantage is, with a good foreign history, chances of approval are very high, plus, the age of your account goes back to the first issuance of your Amex card abroad !
https://www.americanexpress.com/global-card-transfers/united-states.html
Transferring Funds to the USA:
Another point to remember is that transferring your foreign money to your new US account (for instance, to get your secured loan or secured credit card) can be a costly affair. Banks have 2 areas to make money off you:
Transfer fee: Usually a flat fee or a fixed percentage. This is the fee that is generally quite visible. Exchange Rate: The exchange rate your bank will use is quite different from the real exchange rate on the market. For example, the exchange rate between the EURO and the US DOLLAR might be 1.330 on the market, but your bank might only offer you 1.290. That is a 3% difference you might not see ! After doing some research, I settled on TransferWise. (https://transferwise.com/u/b6f15). This seems to be the best platform so far for people in Europe (incl. the UK) to send money to the US. (Or from UK -> EU and vice versa).
It takes a few days longer than most bank transfers, but other than that, I have found it faultless and easy to use. The people behind TransferWise are those that built Skype.
Little disclaimer: The URL provided (https://transferwise.com/u/b6f15) is linked to my account and will allow me to accumulate friend referral benefits.
There are other platforms that outperform high-street banks and Paypal, please feel free to comment below to add your experiences (and from where to where you sent the money). I would find it useful to add information on how to send money from Non-EU countries, and also how to send money to the foreign spouse / fiancee.
Reading Tips:
http://www.myfico.com/CreditEducation/articles/
http://www.freescore.com/good-bad-credit-score-range.aspx

Introduction
Seeing how building a credit score is one of the biggest hurdles for an immigrant to tackle, and every now and then you see a topic pop up with a question about things like credit cards, buying a car and so on, I thought it would be a good idea to have a single topic to gather all tips and tricks in a single thread.
In time, maybe we can incorporate this info into one of VJ's Guides...
What is Credit Score
The US Credit Score is a number between 300 and 850, which reflects your ability to handle credit. The official score is often referred to as FICO (Fair, Isaac & Company)
There are 5 items that contribute to your score, each with a different weight:
Payment History (35%): Any history of bankruptcy, liens, judgments, settlements, charge offs, repossessions, foreclosures, and late payments drops your score. Revolving Debt (30%): The amount borrowed versus available credit. Think Credit Cards. Length of Credit History (15%): Both the average time of accounts, as well as the age of the oldest account. These must be ACTIVE accounts. Types of Credit (10%): installment, revolving, consumer finance, mortgage. If you handle more than 1 type of credit, this is good. Inquiries and New Debt (10%): When making an inquiry for credit, such as credit card applications, shopping for a loan etc, your rating goes down. Why is this good or bad as a new immigrant
As an immigrant you do not have a history in the US. This means you DO NOT HAVE a US credit rating when you arrive.
The positive thing is that you also do not have any BAD payment history.
The bad thing is, credit is a catch-22 problem in the US: You can't get credit without a good credit score, and you can't get a good credit score without having and using credit.
Any cards, accounts or history you have or had abroad do not count. (One known exception, see below)
What credit score ranges are there
Excellent credit score: 720 and Up Good credit score: 680 to 719 Average credit score: 620 to 679 Poor credit score: 580 to 619 Bad credit score: 500 to 579 Miserable credit score: Less than 500 How to get credit so you have items reporting into your credit score
A lot depends on your personal situation. Are you married, employed, do you have cash to open an account, and so on.
Typically, you will need to find a bank or credit union first, so ask around.
Once you have found a suitable financial institution, ask for a "Secured Credit Card". This is a card with a certain spending limit, which amount you secure through the financial institution by depositing the cash equivalent on a locked account.
You can then use the assigned credit, and after the first month's statement is due, you will have items reporting into your credit score. You now have payment history, length of credit and revolving debt.
Usually, your bank will replace the secured credit card with a regular credit card, increasing the limit on the card. Expect this after a few months, if you pay your statements on time.
People coming in through a work visa can often get a company credit card, which makes life a lot easier!
If your spouse has a good credit rating, the financial institution might also allow him/her to co-sign the credit card application. Check with the financial institution on the requirements they have. In theory any person (in the US) with good credit can co-sign, so a family friend, parents etc are fine too.
How to get from decent to excellent credit
OK, now that we have some things reporting into our credit score, how can we boost that score up?
1. The number one rule: PAY EVERYTHING ON TIME, IN FULL
2. Specifically to credit cards, the use of credit is important, more specifically, how much do you charge to your card:
Per account, avoid exceeding 33% of assigned credit. Some people say it's best to have a utilization of 12-20% (Some say between 1 and 20%) The utilization is based on the amount due on the reporting date. If you buy a 900$ television on a 1000$ credit, but deposit 700$ before the reporting date, your utilization is only 200$, or 20% (Can anyone confirm?) Do not leave credit cards unused (When not using credit, this hurts your score). If you have a 500$ secured card, you could for instance use it to put fuel in your car every week or so. Do not close old credit cards, this hurts your account age! 3. Diversify. Get at least one credit card and one installment loan. You can get a secured installment loan through your financial institution. If you want to buy a TV for 1000$, but that 1000$ in a secured account at the bank, and have them give you a loan over 12 months against that deposit.
Another option, typically when buying a car, is to get a car from a dealer who gives credit to "anyone". But ALWAYS ask if they report to the credit agencies (CRAs). Then pay the remainder of the loan after at least SIX months. The intrest rate will be ridiculous (over 20% in most cases).
According to Equifax, having at least 4 (different) lines of credit are required to get a really good score (Credit Card, Mortgage, Car Payment, Student Loans, Personal Loans, Home Equity Loan for Credit, ...)
My credit union actually suggested the following:
a) Get a "personal secured loan" to buy a car. (basically: Put the money you would pay as a cash downpayment on a car, into a secured loan for yourself)
b) After 90d of employment, you qualify for a "first time borrower" loan. Bring in the title to the car, and you can use the title to borrow against. You'd get a mediocre intrest rate (C-level credit).
This would give you 3 lines of credit after about 4 months, which is pretty good !
Age of Credit Accounts
Even if you have a decent credit score after a few months, when the time comes you want to buy your first car, you might get rejected quite a bit on your loan, due to "no sufficient credit history". Although the average age of accounts only counts for 15% of the credit score algorithm, financial institutions will count this as one of the major factors for credit decisions. The solution is to get a large downpayment, and preferably work with the financial institution directly, not through a dealer.
Credit Reporting Agencies
There are 3 major CRAs in the US:
TransUnion (http://www.transunion.com) Equifax (http://www.equifax.com) Experian (http://www.experian.com) They all have minor differences in how they calculate your credit score. By law, they are (each) required to give you one free credit report per year.
What can affect your score negatively?
(From TransUnion) Wondering when judgments and bankruptcies will no longer appear on your credit reports? Check the dates on records in your credit report. Generally, here's how long judgments and bankruptcies remain on a credit report: Bankruptcy Generally, Chapter 7, 11 and 13 bankruptcies appear as public record items on your credit report for up to 10 years after filing. Chapter 13 bankruptcy records are sometimes taken off sooner, 7 years after filing, depending on the credit reporting company’s policy. When you receive an Order of Discharge in bankruptcy, your creditors should mark those accounts that were discharged as "Included in Bankruptcy" and they will stay on your report for up to 7 years. Charge-off accounts Generally, if a delinquent account is charged-off, the charge-off record appears on your credit report for up to 7 years. Closed accounts Generally, negative or derogatory information about delinquent accounts remain on your credit reports for up to 7 years. Positive closed accounts (without late payments or other delinquencies) may appear for longer than 7 years. Collection accounts Generally, accounts sent to collections will be listed on your credit report for up to 7 years, beginning 181 days from the most recent delinquent period before the collection activity. A collection account’s status should change to "paid collection" once you've paid off the entire amount. If you settle with the collection agency for less, your credit report may list the account as "settled for less than full balance." Inquiries When a creditor or lender checks your credit in connection with an application, you'll usually see a "hard inquiry" on your credit report. Generally, these stay on your report for as long as two years, and may lower your credit score slightly. When a creditor reviews the credit report of an existing customer, or when you access your own data online, a "soft inquiry" typically shows up on your credit report. Soft inquiries don't lower your credit score or appear to businesses checking your credit. Judgments Generally, most court judgments, including small claims, civil and child support, stay on your credit reports for up to 7 years from the date they were filed. Late payments Generally, if you make a payment late, the delinquency could appear on your credit report for up to 7 years. Tax liens Under federal law, city, county, state and federal tax liens could stay on your report indefinitely. Generally, after the lien is paid, the record of it stays on your credit reports for up to 7 years from the payment date. One of the most important of these are the inquiries. If you want to get store credit or a new credit card, DO NOT JUST APPLY for one. Every time you apply for credit, your score will drop a few points, and the inquiry itself (Often referred to as "hard inquiry) stays on your report. Lenders who see systematic hard inquiries on a report see this as negative.
However, when shopping for a car (and thus car loans), all hard inquiries within 14 days are reported as one. When buying a house and a mortgage, they are grouped into one for 30 days.
Major Tip:
VISA and MasterCard are basically payment PLATFORMS, where local financial institutions issue the credit through the platform. Your credit history and account reside with that financial institution.
American Express (AMEX) however, issues the credit itself (Sometimes through local companies, but the credit file is shared with Amex --> This appears NOT to be the case: If cards in your country are not issued by American Express directly (Global Network Cards), they cannot be transferred.).
If you have an Amex abroad, and have had it for more than 12 months, you can (in most cases) request a US Amex card to replace your foreign card. The advantage is, with a good foreign history, chances of approval are very high, plus, the age of your account goes back to the first issuance of your Amex card abroad !
https://www.americanexpress.com/global-card-transfers/united-states.html
Transferring Funds to the USA:
Another point to remember is that transferring your foreign money to your new US account (for instance, to get your secured loan or secured credit card) can be a costly affair. Banks have 2 areas to make money off you:
Transfer fee: Usually a flat fee or a fixed percentage. This is the fee that is generally quite visible. Exchange Rate: The exchange rate your bank will use is quite different from the real exchange rate on the market. For example, the exchange rate between the EURO and the US DOLLAR might be 1.330 on the market, but your bank might only offer you 1.290. That is a 3% difference you might not see ! After doing some research, I settled on TransferWise. (https://transferwise.com/u/b6f15). This seems to be the best platform so far for people in Europe (incl. the UK) to send money to the US. (Or from UK -> EU and vice versa).
It takes a few days longer than most bank transfers, but other than that, I have found it faultless and easy to use. The people behind TransferWise are those that built Skype.
Little disclaimer: The URL provided (https://transferwise.com/u/b6f15) is linked to my account and will allow me to accumulate friend referral benefits.
There are other platforms that outperform high-street banks and Paypal, please feel free to comment below to add your experiences (and from where to where you sent the money). I would find it useful to add information on how to send money from Non-EU countries, and also how to send money to the foreign spouse / fiancee.
Reading Tips:
http://www.myfico.com/CreditEducation/articles/
http://www.freescore.com/good-bad-credit-score-range.aspx

There's no such thing. 
When your extension letter expires, you can make an InfoPass appointment to get a stamp in your passport, which then allows you to travel normally.

So today was my biometrics appointment. The operator did not have any information as to why I had to redo mine, even though they were not even 10 months old...
 
Anyway,
 
Hope to see some new action soon! The first CSC filers are now getting traction on their application, so I guess we'll see more and more of us get approvals, RFEs and interviews!

That's great news! 
So it looks like 6 weeks or so after a transfer notice, approvals start to happen
Mine moved mid April, and I just got a new biometrics request for late May, so with a bit of luck, they'll complete my review shortly after

No, as there's no reason to call them. The Biometrics are in a few weeks, so I'll find out then
They may have just lost some data or something

Seeing how I never got my first Biometrics letter, and when I called in last year, they sent me a new one for early July 2017, mine are not even a year old yet... Weird !

So WITHOUT any mails or TXTs, I got a new letter today from USCIS in Laguna Niguel, CA.
It's a NEW appointment for BIOMETRICS.
 
Is it normal to get a second biometrics appointment? Note, I did NOT yet file my N-400! So it's not from that.
 
That said, is there any other CSC filer that has seen any REAL action on their application?
 
NOTE to everybody: If you get a letter from USCIS, note the address it was sent from, and include the origin when you're mentioning your letters here. I've had letters from Arlington, VA and from Laguna Niguel, CA.
 
Good luck everybody, will keep you guys updated as things progress!

Most companies run "e-Verify", so with your SSN they should be fine. I seem to remember HR took down some details on my GC back in the day.
If the employer does not run e-Verify, they may indeed need a proof of eligibility to work in the US

As some of you may have read, as a CSC filer, I was not expecting a response for another few months, but after the "weird" late FEB 2018 transfers, I got a bunch of mails and TXT messages saying my case got transferred on APR 16.
 
The NOA for that notice arrived in the mail today, and guess what...
 
SENDER: USCIS POTOMAC SERVICE CENTER (Arlington, VA)
Notice Type: TRANSFER NOTICE
 
"In order TO SPEED UP PROCESSING, your case has been transferred to:
CALIFORNIA SERVICE CENTER, Laguna Miguel"
 
 
So, I have NO clue what's going on here... Are they storing ALL the I-751s off-site to have them safe, and then transport them in batches to CSC for processing? 
Why is USCIS sending me a letter from Arlington, VA? Or is that what happened with the FEB 2018 transfers? I sent my initial packet to CSC back in MAR 2017, so no clue why it's being transferred there now, as it should have been there for over a year!
 
Since the 16th, I've received more mails and TXTs regarding transfers, so if there are more letters coming in next week, will keep you updated...
 
*SIGH*