Immigrating to a new country comes with the excitement of a fresh start and, at times, the stress over the small details. You’ve secured your VISA, secured a job, and found a place to live, but you realize that you’re limited in access to funds, as you’re “not eligible”, even though you had a perfect financial record in your home country. A common frustration for many; where you have years of on-time mortgage payments and a top-tier credit rating in your home country. This becomes apparent as you run into issues with standard financing, like a cell phone plan, or you may be required to make a larger deposit on an apartment.
You aren't alone, and there is a clear path to building the financial reputation you deserve. While it's a hurdle, you can clear it with the right tools and some patience. You can go from being "credit invisible" to a trusted borrower in the eyes of American lenders, unlocking the ability to buy a home, lease a car, and secure your future in the U.S.
Why Foreign Credit Doesn't Usually Cross Borders
Generally, does a foreign credit score transfer to us? The short answer is no. Each country operates its own independent credit reporting system with unique scoring models and data protection laws. Because U.S. lenders rely on the three major bureaus-Equifax, Experian, and TransUnion- they typically cannot see or use data from international bureaus.
There are very few exceptions, such as specific partnerships with companies like American Express or specialized fintech services that can translate international reports for specific lenders. However, for most newcomers, you'll arrive with a "blank slate," which lenders often view with the same caution as a poor credit score.
The Challenge of Living Without a U.S. Credit History
When you first arrive, you might notice that even basic services are harder to access. Utility companies might ask for a security deposit to turn on your electricity. Landlords might skip over your application because they can't verify your "reliability" through a standard background check. Even if you have plenty of cash in the bank, the U.S. financial system is built on the concept of "creditworthiness" -a history of borrowing and repaying money specifically within American borders.
This doesn't mean your previous financial success was for nothing. It just means you need to translate those good habits into a new language. The discipline it took to maintain a high score in your home country is exactly what will help you climb the ranks of the U.S. system.
Proactive Steps to Build Your U.S. Credit
Since your history doesn't follow you, your goal is to create a new "paper trail" as quickly as possible. This requires a multi-pronged approach to prove to different institutions that you are a low-risk borrower.
- Secure Your Identification: You'll need a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) to start most credit accounts. This is the primary key that links your identity to your credit report.
- Open a U.S. Bank Account: Establishing a relationship with a local bank or credit union is a vital first step in showing financial stability. While a checking account doesn't build credit directly, it provides the necessary foundation for paying bills and applying for future credit products.
- Check Your Standing Early: Once you begin the process, knowing How to Check My Credit Score (and Why It Might Matter More Than You Think) will help you track your progress and catch any errors early on.
- Apply for a Secured Card: These cards require a cash deposit that serves as your credit limit. Because the bank has your deposit as collateral, they are much more likely to approve you without a pre-existing score.
- Become an Authorized User: If you have a trusted friend or family member in the U.S. with good credit, they can add you to their account. Their positive history on that specific card can sometimes be reflected on your own report, giving you a "head start."
Understanding the FICO® Scoring Model
To build credit effectively, you need to know how the "game" is scored. The U.S. uses several models, but FICO® is the most common. Your score isn't just one number; it's a reflection of several different behaviors.
The biggest factor is your payment history. On-time payments are the single most important thing you can do to prove your reliability. Next is your credit utilization-how much of your available credit you are actually using. Lenders like to see that you have credit available, but aren't relying on it too heavily. Finally, things like the length of your credit history and the types of accounts you have (your credit mix) play a smaller but still significant role.
Using a Credit-Builder Loan
A credit-builder loan is one of the most effective ways to establish a U.S. credit history without needing a pre-existing score.¹ Instead of getting money upfront, your monthly payments are held in a secure account while the lender reports your on-time activity to the credit bureaus.
Cheers is a knowledgeable guide in this process, offering a simple and affordable way to build credit on autopilot. With no hard credit check required and no hidden fees ², it's designed to help you reach your goals faster. Cheers uses accelerated reporting,³ which means your account and first payment can be reported to all three bureaus within 15 days of opening. This is especially helpful if you're looking for How to Build Credit Fast in 2026 to settle into your new life quickly.
By the end of your term, you'll have a stronger credit profile⁴ and your savings returned to you, minus interest.⁵ Understanding what's in your credit score⁶ can further help you manage your new U.S. accounts effectively.
Navigating the Emotional Side of Financial Transitioning
It's easy to feel discouraged when you're treated like a teenager getting their first bank account, especially if you were a high-earning professional or homeowner elsewhere. The key is to view this as a temporary phase. The U.S. credit system is actually quite fast once you get the engine running. While it might take six months to generate your first FICO® score, you can often reach a "good" range within a year or two of consistent, disciplined behavior.
Don't let the "blank slate" prevent you from taking action. Every month you wait to start is a month of history you're missing out on. By starting with a tool like Cheers, you're making sure that your very first steps are being counted where they matter most.
Frequently Asked Questions
1. How does Cheers help build credit? Cheers reports your monthly payments to all three major credit bureaus-Equifax, Experian, and TransUnion. This helps you build a payment history, which is 35% of your FICO® score, and increases your credit mix with a secured installment loan.
2. Is there a credit check to apply for Cheers? No hard credit check is required. All accounts are subject to identity verification and consumer report review by the issuing bank, Sunrise Banks N.A., Member FDIC.
3. Do I get my money back at the end of a Cheers plan? Yes. At the end of your term, your total savings (minus interest) are returned to you. You can cancel your account at any time without penalty.
Conclusion
Building credit in a new country follows similar principles to those in your home country. While your credit score may stay behind, you bring the same good financial habits that you’ve mastered to the United States. Taking consistent steps, like using a credit-builder loan and paying on time, every time, you set yourself up with a solid foundation that brings your fresh score to the score that you deserve. One that opens funding, lower interest rates, and “creditworthiness” that helps you leverage the United States banking system.
Ready to start your journey? Sign up for Cheers today and start building your U.S. credit history on autopilot.
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.⁹)
References
- myFICO - what's in your credit score - https://www.myfico.com/credit-education/whats-in-your-credit-score
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.
²No Hidden Fees: There are no application fees, maintenance fees, or early cancellation penalties.
³Accelerated Reporting: Accelerated reporting applies to the opening of your account, plus the first payment. Credit bureau reporting occurs monthly thereafter
⁴Credit Score Impact: Based on internal user survey data (2024), 95% of users with fair credit (580–669) saw a credit score increase of 20+ points after two months of on-time payments. Individual results may vary. Late or missed payments can negatively affect your credit.
⁵Cancel 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.
⁶FICO® Credit Factors: According to FICO®, 35% of your credit score is based on payment history, and 10% is based on credit mix. Cheers reports every payment and adds a secured installment loan to your profile. Source: myFICO： https://www.myfico.com/credit-education/whats-in-your-credit-score
⁷APR Comparison & Affordability: Cheers Interest is calculated using an amortized repayment schedule at a fixed 12.15% Annual Percentage Rate (APR). Comparable products may charge APRs up to 36%, according to publicly available terms. Cheers also charges no administrative or hidden fees.
⁸Credit Builder Account Plans: All plan options include a 24-month term, 25 total payments and a 12.15% Annual Percentage Rate (APR). Plan A: Total Payments of $600 with $532.70 Amount Financed. $24 Monthly Payments and $67.30 Total Interest. Plan B: Total Payments of $825.02 with $733.13 Amount Financed. $33 Monthly Payments and $91.89 Total Interest. Plan C: Total Payments of $1,149.98 with $1,021.69 Amount Financed. $46 Monthly Payments and $128.29 Total Interest. Plan D: Total Payments of $3,600.00 with $3,197.82 Amount Financed. $144 Monthly Payments and $402.18 Total Interest.
⁹Sunrise 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.
