How can I get a credit score as an immigrant?

Getting a credit score as a noncitizen immigrant starts with building credit history, and building credit history starts with opening credit accounts in your name. Getting a Social Security number (SSN) or individual taxpayer identification number (ITIN) can make it easier for you to open credit accounts, if eligible. 

By opening credit accounts like a secured credit card or credit-builder loan — or by getting yourself added as an authorized user to a credit account — you’ll automatically get credit reports created in your name by credit bureaus. Using a bill reporting service, which can report credit accounts like utilities or phone plans, can be another way to add to your credit reports. 

These reports will keep track of your credit history and supply that information to credit scoring companies, which use it to create your credit scores. 

Before you start your credit-building journey, check with the credit bureaus to see if you have credit reports yet. Credit Karma provides free credit reports, along with free VantageScore® 3.0 credit scores, from Equifax and TransUnion, two of the three major credit bureaus.

• How are credit scores calculated?
• What are the steps to getting a credit score as an immigrant?
• How do I start building credit?
• Next steps: How can I monitor my credit-building progress?
• FAQs about building credit as an immigrant

How are credit scores calculated?

You have many different credit scores, each one backed by a unique credit scoring model that pulls information from one of your credit reports. If you don’t have credit reports, then you can’t get credit scores.

FICO® and VantageScore® are two popular credit scoring companies with widely used credit scoring models. While these companies may weigh the information they receive differently, depending on the scoring model being used, they tend to use these general scoring factors in their calculations:

• Payment history — This is your record of on-time or missed payments. This is the largest factor for your credit scores, so it’s important to build a positive payment history.
• Credit usage (utilization) — Your credit utilization rate refers to how much of your available revolving credit you’re currently using. Keeping your credit utilization low — generally below 30% of your available credit — can be helpful to your credit scores.
• Length of credit history — This is how long you’ve managed credit. This factor takes into account the age of your oldest account and newest account, as well as the average age of all credit accounts. A longer credit history is generally better for your credit scores.
• Credit mix — Your credit mix refers to the types of open credit accounts you have. This can include revolving accounts like credit cards and installment loans like mortgages and student loans. A mix of credit is helpful to your credit scores, but not a necessity to build credit successfully.
• Recent credit activity — This tracks whether you’ve opened or applied for new credit accounts, resulting in hard inquiries. A higher number of hard inquiries in a short amount of time can signal to lenders that you’re overextended, which can damage your credit scores.

What are the steps to getting a credit score as an immigrant?

As an immigrant, you can get a credit score by opening credit accounts in your name that report to the three major credit bureaus — Equifax, Experian and TransUnion. Having a Social Security number or individual taxpayer identification number will generally make this process easier.

The credit bureaus will create credit reports for you, which will then be used to generate your credit scores. 

To help pad your credit file, you can also use a bill reporting service to report accounts not usually included on credit reports, or you can become an authorized user on a trusted person’s credit account.

Here’s a breakdown of each step.

1. Get an SSN or ITIN, if possible

Credit bureaus use your name, address and other personal identifying information to create credit reports. Some financial institutions also ask for your Social Security number when you apply for a credit card or loan, so having one can make the application process easier and faster.

To get an SSN — which is free —you’ll need to meet the eligibility guidelines for noncitizens. This generally includes being authorized to work in the U.S. by the Department of Homeland Security.

If you’re not eligible for an SSN, you might be able to get an individual taxpayer identification number, or ITIN, which you may be able to use in place of an SSN on credit applications.

If you can’t get an SSN or ITIN, don’t worry — some institutions will let you use a passport or other government-issued ID to apply for a credit card. You may also be able to discuss your options if you go to a physical bank or credit union branch to apply in person. 

2. Apply for a secured credit card or credit-builder loan

You need to have credit to build credit. If you want an account that’s geared toward those new to credit, consider opening one of the following credit products:

• Secured credit cards: These cards require a refundable security deposit that typically becomes your credit limit. The deposit makes secured cards easier to qualify for since they’re backed by collateral.
• Credit-builder loans: With a credit-builder loan, you don’t get the money right away. Instead, you make monthly payments to your lender, which sets the funds aside in a dedicated savings account or certificate of deposit. Those payments are reported to the credit bureaus to help you build a payment history. Once you pay off the loan, the lender will release the funds to you.
• Credit Karma’s Credit Builder plan: Credit Karma’s Credit Builder plan works a little differently than a credit-builder loan. With this plan, you choose how much money you want to set aside each pay period. Credit Karma then opens a line of credit and a locked savings account in your name. Each pay period, Credit Karma will transfer that agreed upon amount from your line of credit to your savings account and apply your payment to the line of credit. This allows you to establish payment history and show credit utilization, both crucial for building credit. To sign up for the Credit Builder plan, you’ll need a Credit Karma account, which requires a Social Security number to set up. 

3. Become an authorized user on a trusted person’s credit card

As an authorized user of a credit card, you could benefit from the primary cardholder’s good credit without having to open your own account. Some issuers might require you to have an SSN to become an authorized user, but not all of them.

An authorized user is someone who’s given permission to use another person’s credit account. You’re generally given a credit card in your name, but the primary cardholder is the one responsible for making sure the account stays in good standing. 

If you have a relative or close friend in the U.S., you might want to ask them to add you as an authorized user on one of their credit cards. Just keep in mind that your credit could suffer if the primary cardholder doesn’t pay their card on time or manage their account properly, so be sure to ask someone you trust. 

Not all credit card issuers report authorized user accounts to the credit bureaus, so make sure the one you choose does.

4. Sign up for a bill reporting service

If you’re paying bills for things like your utilities or cell phone, you can use a bill reporting service to report your payments to the credit bureaus. This can bolster your credit file and help you qualify for a credit score. 

Shop around and find a free service that will report the bills you already pay. Credit Spark™, Credit Karma’s free bill reporting tool, is one option. You can use it to report up to five eligible billing accounts to TransUnion. To sign up for Credit Spark, you’ll need a Credit Karma account, which requires a Social Security number to set up.

How do I start building credit?

Once you actually have credit scores, building credit as a noncitizen immigrant is a lot like building credit as a U.S. citizen. You’ll need to stay consistent and follow good credit-building habits for years, not just for a few months. With time, you’ll be able to strengthen your credit scores and qualify for better offers on loans, mortgages, credit cards and more. These tips can help you keep your credit healthy.

• Safeguard your payment history. Payment history is the most influential part of your credit scores, so keeping this factor positive is crucial to building good credit. If you’re worried about staying on top of your payments, set up calendar reminders or automatic payments. 
• Keep credit card debt low. Revolving credit accounts like credit cards contribute to your credit utilization rate, or how much credit you’re using compared to how much available credit you have. Experts recommend keeping your utilization at least below 30%. So if you have a credit limit of $1,000, you should try to avoid carrying a balance of more than $300 month to month on your card.
• Ask for a credit limit increase. Some credit cards provide automatic credit limit increases if you’ve gone a set number of billing cycles without missing a payment. If yours doesn’t, consider reaching out to your issuer after about six months to discuss a credit limit increase. If you keep your spending the same, your credit utilization rate will automatically drop.
• Limit the number of new credit applications you send out. Because too many new applications in a short period of time can be a red flag to lenders, it’s better to space them out.

Next steps: How can I monitor my credit-building progress?

After you get credit scores, it’s a good idea to keep tabs on them regularly. Checking your credit reports and scores will allow you to monitor your progress and catch any errors made by a lender or credit bureau. If you do spot an error, you have the right to dispute it with the credit bureaus. 

Credit Karma is not a credit bureau, but it does provide free Equifax and TransUnion credit reports, as well as free VantageScore® 3.0 credit scores from those two bureaus. To become a Credit Karma member, you’ll need a Social Security number.