Immigrating to the US is quite a considerable journey. Filled with paperwork, new customs, and excitement, many immigrants run into frustration as they look for basic necessities like renting an apartment, signing up for a utility plan, or buying a car. You may have had a perfect financial record in your home country, but it unfortunately doesn’t transfer over in the US; whereas, you have to start fresh. This “invisible” status can make you feel stuck, as if the system is against you.
However, it doesn’t have to feel that way, and with only a few more steps, there are simple steps that you can take to start building your credit profile today. The goal isn’t to just get credit cards; it’s to build a financial reputation that keeps you upstanding with borrowers. By understanding the U.S. credit system for immigrants, you can move from having no history to a credible credit profile to get the funding that you need.
Why Your History Didn't Travel With You
A common question for immigrants is why their hard-earned financial reputation back home doesn't count in the U.S. The U.S. system relies on three private companies-Equifax, Experian, and TransUnion-which only track data within U.S. borders. Because these bureaus don't share data globally, you essentially start at a score of zero.
This creates a "chicken and egg" problem: you need credit to get a score, but you often need a score to get credit. Breaking this cycle requires a shift in strategy. Instead of looking for traditional loans right away, you should focus on entry-level tools designed for those who are starting from scratch. Knowing How Do You Build Credit? A Simple Guide to Start Today is vital for anyone stepping into this environment for the first time.
The Mechanics of Your Three-Digit Score
Your credit score is a number between 300 and 850 that acts as a financial grade. Lenders use it to guess how likely you are to pay back what you owe. To build this score effectively, you have to know precisely what these companies are looking for in your behavior.
According to FICO®, the most widely used scoring model, five main factors determine your score¹. If you want to dive deeper into the specifics, you can see What is in your credit score? for a full breakdown. Here is the short version of what matters:
- Payment History (35%): This is the biggest piece of the pie. It simply tracks whether you pay your bills on time every single month.²
- Amounts Owed (30%): Also called "credit utilization," this looks at how much of your available credit limit you're actually using. It's best to keep this under 30%.
- Length of Credit History (15%): The longer your accounts have been open, the better. This is why starting as soon as possible is so important.
- Credit Mix (10%): Lenders like to see that you can handle different types of debt, like a credit card (revolving) and a loan (installment).¹
- New Credit (10%): Opening too many accounts at once can make you look desperate for cash, which can temporarily lower your score.
Practical Tools for the Newcomer
For someone new to the country, traditional "unsecured" credit cards are often out of reach because they require an existing score. Fortunately, there are alternative paths that are much more welcoming.
Secured Credit Cards
With a secured card, you provide a cash deposit to the bank, say, $200, $200-which then becomes your credit limit. Because the bank has your deposit, they take on minimal risk, making it easier for you to get approved. If you use the card for small purchases and pay it off in full every month, the bank reports that positive behavior to the bureaus.
Credit-Builder Loans
A credit-builder loan, like the one offered by Cheers, works a bit differently from a standard loan. Instead of getting the money upfront, your monthly payments are held in a secure Certificate of Deposit (CD). Cheers reports every payment and adds a secured installment loan to your profile. This helps you build both payment history and a healthy credit mix. At the end of the term, you get your savings back, minus the interest.³ It's a way to prove you're reliable while actually building a nest egg for your future.
Accelerated Strategies for 2026
If you're in a hurry to establish your score, perhaps because you need to move out of a temporary rental, you'll want to look into How to Build Credit Fast in 2026. Modern tools now offer features like "accelerated reporting". For example, Cheers can get your account and first payment on your credit report in as little as 15 days, rather than the standard 30 to 45 days.⁴
Navigating Identification Requirements
One hurdle many immigrants face is the lack of a Social Security Number (SSN) immediately. While an SSN is the standard, it isn't always the only way to start. Many financial institutions allow you to use an Individual Taxpayer Identification Number (ITIN) to open accounts and build credit. However, to utilize Cheers, you must have a Social Security Number.⁵
At Cheers, we understand that every journey is different. While we do require identification verification to keep everyone safe, we focus on making the process as accessible as possible. You don't need an existing credit score to apply, and there is no "hard" credit check that could hurt your chances elsewhere.
Building Habits That Last
Establishing credit is just the beginning; maintaining it is where the absolute freedom lies. As you navigate the US credit system for immigrants explained in your daily life, keep these simple rules in mind:
- Automate your payments: Since payment history is 35% of your score, a single missed payment can set you back months.²
- Keep costs low: Cheers’ Interest is calculated using an amortized repayment schedule at a fixed 12.15% Annual Percentage Rate (APR).⁶ Unlike other options, Cheers charges no administrative or hidden fees.⁷
- Stay consistent: Based on internal user survey data (2024), 95% of users with fair credit saw a 20+ point increase within just two months of on-time payments.⁸
Conclusion: Your Future in Focus
While building an entirely new financial foundation in a new country can feel like an uphill battle, the path ahead is more straightforward than it may seem at first. By understanding the US credit system for immigrants, the process is the same as for beginners, with just a few more steps. Showing consistent behavior with on-time payments and a healthy credit mix, you can take control of your financial reputation. Starting with no history doesn’t mean you’re stuck; it just means you start fresh. With intentional decisions and the right entry points like secured cards or credit-builder loans, the amount of tools available in modern day make it easier than ever to build your financial profile today.
Establishing a strong credit score is one of the most important steps you can take to secure your family's future in America. It's the key to lower interest rates, better housing options, and overall financial peace of mind. Don't wait for the system to find you; take the first step toward a prime credit score today and join the thousands of others building their dreams from the ground up.
Ready to start building your American financial future? Sign up for Cheers.Credit today and start building credit 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:
- What is in your credit score? - https://www.myfico.com/credit-education/whats-in-your-credit-score
Footnotes
1FICO® 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
2Payment 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.
3Cancel 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.
4Accelerated Reporting: Accelerated reporting applies to the opening of your account, plus the first payment. Credit bureau reporting occurs monthly thereafter.
5Eligibility Criteria: Must be at least 18 years old, have a valid U.S. bank account, and a Social Security Number. All accounts are subject to identity verification and consumer report review by the issuing bank, Sunrise Banks N.A., Member FDIC.
6APR 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.
7No Hidden Fees: There are no application fees, maintenance fees, or early cancellation penalties.
8Credit 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.
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.
