Building a new life in the United States can be quite the journey. Filled with numerous opportunities and an equal amount of paperwork, it may seem that there is a never-ending list of requirements and responsibilities. One of the most important, yet often confusing, pieces of the puzzle can be your financial profile and credit score. In most financial systems, credit isn’t just about credit cards; it stands as the key you need to unlock apartments, lower insurance, and is a requirement for some jobs. For immigrants, it's just as essential as anybody, and just like everybody else, you need credit to get credit.
But how do you start from scratch when your financial history doesn’t follow you to the United States? The great news is that there are considerable opportunities that you can leverage to start your credit profile today. In 2026, there are more tools than ever explicitly designed for different financial circumstances. Whether you have a Social Security Number (SSN), an Individual Taxpayer Identification Number (ITIN), or are just starting to navigate the U.S. banking system, this guide walks through the #1 best credit builder for immigrants and how you can get started today.
Why U.S. Credit is Essential for Immigrants
When you arrive in the U.S., you might be surprised to find that your financial reputation is a blank slate. American lenders generally cannot access credit bureaus from other countries. This means that even if you had perfect credit in your home country, you are "credit invisible" here.
Building a U.S. credit score is crucial because it affects:
- Housing: Most landlords run a credit check before renting an apartment. A good score can save you from paying massive security deposits.
- Transportation: Auto loans for buyers with no credit often come with sky-high interest rates. Good credit helps you secure affordable financing.
- Utilities: Cell phone providers and utility companies often require a deposit if you don't have a credit history.
- Employment: In some industries, employers check credit reports as part of the background screening process.
The Best Way to Start: Credit Builder Loans
If you are looking for a safe, structured way to build credit without the risk of overspending on a credit card, a credit builder loan is often the #1 choice for immigrants.
Unlike a traditional loan, where you get money up front, a credit builder loan works in reverse. You make monthly payments into a locked savings account. These payments are reported to the major credit bureaus (Experian, Equifax, and TransUnion ¹. Once you finish paying the loan term, the money unlocks and is returned to you, minus any interest or fees².
This method solves two problems at once: it builds your credit history, and it helps you save money.
Why Cheers is a Top Choice for 2026
For those new to the U.S. financial system, Cheers offers a straightforward, digital-first approach to credit building.
- No Hard Credit Check: Applying doesn't hurt your score, which is vital when you are just starting.
- Builds Savings: You are essentially paying yourself. At the end of the term, you get a payout that can be used for a car down payment, security deposit, or emergency fund².
- Reports to Major Bureaus: Cheers ensures your on-time payments are recorded where it counts, helping to establish that all-important payment history¹.
Alternative Options for Immigrants
While credit builder loans are excellent, they aren't the only tool in the box. A healthy credit profile often includes a mix of different accounts.
1. Secured Credit Cards
A secured credit card requires a cash deposit that acts as your credit limit. If you deposit $500, you have a $500 limit. This reduces the risk for the bank, making it easier to get approved.
- Pro: You can use it for daily purchases like groceries.
- Con: You need upfront cash for the deposit.
2. Rent Reporting Services
For many immigrants, rent is the most significant monthly expense. Services that report your rent payments to credit bureaus can help you get credit for bills you are already paying. This is an excellent way to build credit in 2026 without taking on new debt.
3. Authorized User Status
If you have a trusted family member or friend in the U.S. with good credit, they can add you as an "authorized user" to their credit card. Their positive payment history can help boost your own profile. However, this requires finding someone willing to take that responsibility.
Common Challenges and How to Overcome Them
"I don't have a Social Security Number yet." Many immigrants start with an ITIN (Individual Taxpayer Identification Number). Many modern financial institutions and secured card issuers accept ITINs for applications.
"I'm afraid of debt." It is culturally familiar in many parts of the world to avoid debt entirely. However, in the U.S., managing debt is a skill you need to demonstrate. Credit builder loans are often more comfortable for debt-averse individuals because you aren't borrowing money to spend; you are saving money to build trust.
"I don't know my score." You can't improve what you don't measure. It is essential to monitor your progress regularly. Learning How to Check My Credit Score is a fundamental step in your financial journey. Knowing where you stand helps you catch errors early and see the fruits of your labor.
Educational Resources
For more in-depth information on how credit scoring models work specifically for newcomers, the myFICO Blog is a reputable external resource.
Conclusion: Start Your Journey Today
Building credit as an immigrant follows similar measures as anybody who is building their credit from scratch. Considered as a marathon and not a sprint, the most crucial step is the first one: getting a trade line on your report and showing your financial responsibility by paying on time, every time. Diversifying your credit profile is then just as important to demonstrate your creditworthiness. By bridging the gap between your new life in the US and financial freedom, you can build up your credit profile to unlock better interest rates, new apartments, and anything that needs considerable funding that’s traditionally unrealistic with a banking loan.
Ready to start building? Take control of your financial future today. Sign up for Cheers.Credit and start building your credit and savings simultaneously.
This content is for informational purposes only and does not constitute financial advice. Please consult a licensed financial advisor or tax professional before making any financial decisions.
(The opinions expressed in this article are the author’s own and do not reflect the view of Sunrise Banks, N.A. Member FDIC.)³
References
- myFICO Blog - https://www.myfico.com/credit-education/blog
Footnotes
1Payment activity: All payment activity is reported to the credit bureaus. On-time payments may help build your credit, while late or missed payments may negatively impact it. Results are not guaranteed and depend on your individual financial behavior and credit profile.
2Cancel Anytime & Get Savings Back: At the end of your term, your total savings (minus interest) is returned to you. You can cancel your account at any time without penalty.
3Sunrise Banks: Cheers is a financial technology company and not a bank. Banking services are provided by Sunrise Banks N.A. Your funds are FDIC insured up to $250,000 through Sunrise Banks, N.A., Member FDIC. Results are not guaranteed. Improvement in your credit score is dependent on your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus, which may negatively impact your credit score. This product will not remove negative credit history from your credit report. All loans are subject to approval. Must be at least 18 years old, have a valid U.S. bank account, and a Social Security Number.
