how to build good credit history

Dear Readers, 

I am sure if you are in USA credit score always matters, to rent a place or to buy a car or to buy a nice phone for less... I am sure if you don't have good credit score every thing is going costly for you. When you come to USA as an immigrant, you will have lot of questions about how to establish credit history? 

Lets look into this topic now. I am going to discuss about how you can build good credit score very faster?

You might be a student or you might be on your working visa, you can do these to start building your credit score. Most of the times we will think that we need to have income to start building credit score,but that is not true. You can build credit history even if  you are  on H4 or F2 or L2 ,any kind of dependent visa . 

To start with, first try to open a savings account. You can start with any bank. I prefer you can open with credit union (Some examples are Start One Credit Union, Tech CU, Valley Credit Union and many more link this) or you can open with reputed banks such as Wells forgo, Bank of America, Chase. Keep this point in mind USA federal insurance program cover maximum up 200K USD of deposit. (to know more FDIC click here) To know basic information about FDIC click here. One more good thing is that if you have account in credit union you are going to make good money as returns for your deposits.

Secured credit card is the right way to start for building credit score fast. Most of the banks and credit union offer secured credit cards. 

Check Credit score for free on regular basis at www.creditkarma.com without effecting the credit score. Following images show you some of the components which impact credit score. 

When I was new to the country couple of my friends told me that, we need to use max amount of our limit to build credit history fast. But what I learned from my experience is that, we should not use more than 15 to 20% of our credit limit to grow our credit history very fast. 

Few more points to remember: 

When we apply store credit cards they are going to impact credit credit score little high compared to applying for credit card from a bank or credit union.

Building credit score will be must faster when we are using store credit card compared to card from bank or credit union. 

Having too many credit cards also going to impact credit score negatively. You might ask how it can affect. Its very simple it might become tough for us to track and pay the bills on time. 

Do simple math before planning for number of credit cards. Calculate what is your average monthly spending & try to get a credit limit with 10 times more than that. If one card is not offering that much credit limit try to get multiple cards.

Read more about how to improve your credit score.