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How to build a good credit history in the USA

Credit history in the United States is completely different from credit history in other countries. For example, in Russia this is a kind of certificate only in order to receive loans.

Credit history in America is a confirmed aggregate of all credit financial transactions, which is perceived by government agencies as a full-fledged rating of a person’s trustworthiness.

What does US credit history affect?

To make it clear why to have this very story and use not only debit accounts, let us list the areas where a good credit history makes life much easier.

  • The cost of rental housing - with a good credit history you need to pay only the minimum amount of the deposit on top of the monthly rental price, or not to pay them at all. With an undeveloped credit history, you can either be denied a lease or set a commission in the amount of another monthly rental price.
  • Terms of contracts - insurance, mobile communications and any other. The better the credit history, the lower the cost of services and the more favorable conditions. It also works with utilities - not every company will work with a homeowner with a bad credit history.
  • Interest rate on loans - the higher the credit history score, the lower the interest on any loan (mortgage, car loan, consumer loans, etc.).

And this is an incomplete list. If there is nowhere without a credit history, then we will figure out how it is built.

Credit Score in the USA - credit report photo - American ButlerHow to open a credit account in the USA

To open a credit account, you will need:

  • Passport;
  • Visa;
  • Social Security Number or SSN (some banks meet visitors and can open an account before you receive an SSN, but after that you will still need to provide it).

When opening the first credit account, the bank does not provide its own money into circulation. First you have to play with your own money. For this, a Secured Credit Card is issued - a credit account where you deposit your own money and spend it as credit. This is called a security deposit and amounts from $300. This minimum, you can make more.

During a certain period (usually from 3 months to 1 year), the bank tracks all your card transactions. If the user shows himself from the good side, the bank returns his security deposit to the credit or debit account, and the credit limit and credit history credit scores increase.

Below we will explain how to make a good credit history take a year or two, and the confidence of banks grow quickly and efficiently. But first, let's deal with the rating.

Credit history in the USA: what is and how to raise a Credit score - photo by American Butler

Credit Score

Credit scores or credit scores are calculated by special agencies based on the amount of your credit limits, the repayment order, and the presence of overdue payments. You can check your credit score on special sites (for example,, but they give only an approximate result.

Even when you just arrived in the States, your rating is not zero. Minimum is the mark of 630 points.

Credit Score Scale

630 Minimum. In fact, this lack of credit history.
630-690 Satisfactorily. The available credit limit is from $300 to $700-1000, expanding in the absence of late payments.
690-720 Good. The credit limit can be extended up to $2000-3000, the confidence of banks increased.
720-850 Fine. Credit limits are available at about $5,000 per account, interest rates are lowered, and bonuses are available.
850 Maximum. All possibilities of the American credit system are open.

In addition to the credit rating, there are several important reliability indicators:

  • Age of credit history. As a rule, banks are reluctant to work with those whose credit history is younger than 5 years. The system involves the gradual building of a good story, so the story of 8 years is called ideal. It is believed that during this time a person accurately shows his responsibility or, on the contrary, careless attitude towards money.
  • Number of credit lines (accounts). The more loans you have properly repaid (absolutely everything is taken into account, even operations that did not go through the banks - rent, installments, whatever), the better. The ideal is about 15-20 credit lines for 5-8 years of history.

To make the rating grow much faster, there are several tricks.

Life hacking with American credit cards: how to increase credit score

A good credit history is quite realistic to build in a year or two. The faster this happens, the more advantages the financial system opens before you. But for this to happen, you need to follow a few rules.

  1. American Credit score and credit history - how to improve performance and raise points - photo of a girl at the computer at the pool - American ButlerMonthly spending on credit cards should not be more than 20-30% of the amount of the credit limit. In this case, the bank believes that you are not extremely in need of money and have a steady income - rating points are growing as fast as possible.
  2. No minimum payments - the amount of the account (statement) at the end of the month must be fully extinguished. In this case, you avoid two problems at once: interest on the loan and accidental late payments.
  3. By the way, about late payments - they should not be allowed. Even one small delay can seriously lower a credit score and require large interest payments. Moreover, after 2-3 years of using credit accounts without delay in payments, credit cards with a huge number of bonuses - miles, discounts, special conditions, minimum interest rates, are available.
  4. Every year and a half to open a new credit account. This has a positive effect on history and is beneficial from a household point of view: even if you spend only 30% of the card limit, in the amount you get quite tangible money that can be returned without interest.

Of course, with careless use of any credit threatens to turn into a bondage. But if you use the credit system wisely and without fanaticism, you can discover great opportunities.

Specialists from American Butler will be happy to advise you on this and many other questions about life in the United States. We are organizing tours of America, as well as helping everyone who starts a new life here.

We invite you to learn more about us and the culture of the United States on our website or contact the chat window.
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Registration advantages:
  • 1.Receiving discounts and bonuses
  • 2.Comments and ratings
  • 3.Secure payments
  • 4.Payment history
  • 5.Subscribe to news and updates
Login | Registration
Registration via social network
Registration advantages:
  • 1.Receiving discounts and bonuses
  • 2.Comments and ratings
  • 3.Secure payments
  • 4.Payment history
  • 5.Subscribe to news and updates
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