Establishing credit in the United States while living overseas can be tedious, but it can be done with the following guide. A good credit rating is important for getting loans, an apartment, and better credit card deals. If you are considering immigrating to the United States or are looking to gain credit standing from overseas, here’s how you can start building credit.

Build Up a Credit Score in the USA from Abroad

Understand How U.S. Credit Scores Work

The US credit system is unlike many of those found in other countries. In the United States, certain factors define credit scores, including payment history, credit utilization, duration of credit history, recent credit inquiries, and credit mix. Two of the most frequently employed scoring techniques are FICO and VantageScore, calibrated from three hundred to eight hundred and fifty. In order to improve your score, you must set up a credit account to report to Experian, Equifax, and Trans Union.

Apply for a U.S. Credit Card from Abroad

Another way of establishing credit score in the United States from another country is through an American credit card. Even if you do not have an SSN, you can apply for a credit card using an ITIN or an Individual Taxpayer Identification Number. It is possible to get a credit card even if you have no credit history in the United States, as some companies like American Express and Capital One issue credit cards to people with no credit history. As a foreigner, you can apply for an ITIN very easily with the help of the service provider TheITIN.com.

Secured cards are ideal for beginners and help them to build up credit. These normally come with a deposit that works as your credit line. You can establish your credit history by using the card and ensuring you pay off the balance as agreed upon monthly. An easy way to get a credit card from abroad is Firstcard.app.

Become an Authorized User on Someone Else’s Credit Card

If you have a close friend or relative with a credit card from the United States, you can ask them to make you an authorized user. This means their activity on the account will reflect on your credit report, helping you build credit regardless of not owning the account. However, it is essential to understand that the primary cardholder is reported for the credit score, so any non-payment of the bill will reflect poorly.

Open a U.S. Bank Account

Although having a U.S. bank account does not directly contribute to your credit score, it has benefits when it comes to payment and automating bill payments. A few banks in the United States permit the account opening process to be done remotely if the person has links to an affiliated bank branch. A bank account also helps when applying for products such as credit cards or other loans in the future. Wise offers an easy and inexpensive way to transfer money to the USA. As a foreigner, you can apply for an ITIN very easily with the help of the service provider TheITIN.com.

Use International Banks with U.S. Credit Offerings

Some credit card issuers have subsidiaries or branches in the United States and provide credit products that reflect Equifax and similar credit reporting agencies. HSBC, Citibank, and American Express issue international credit cards that can contribute to creating a credit history in the United States. Suppose you are already in a banking relationship with one or more institutions. In that case, you may be able to use that relationship to secure a credit account based in the United States.

Pay Bills That Report to U.S. Credit Bureaus

There are common bills that are paid, such as phone bills, utilities, and even rent, that may be reported to credit bureaus in the US. Some companies enable users from different countries to report their payment history in the United States; Experian Boost is one of them. Although these payments do not have the same effect as a regular credit card or credit facility, they can still benefit your credit history.

Apply for a Credit-Builder Loan

Another type of credit-building loan is a credit-builder loan, which is also ideal for those with credit from abroad. It differs from a regular loan in that the bank or credit union keeps the borrowed sum in a savings account where one makes regular repayments. When the loan is paid off, you get the money back, and timely payment is reported to the credit reporting bureaus. Those mentioned above and some other US financial institutions permit non-residents to apply for these loans online.

Keep Your US Credit Active

If you already have a credit account with a United States-based company, it is important that you maintain it by using it now and then. However, failing to use your accounts will negatively affect your credit rating. They also recommend that even when one is not in a position to use an account frequently, one should make small purchases every few months to prevent issuers from canceling such accounts as inactive.

Monitor Your Credit Report Regularly

Regular credit report review is important to avoid situations whereby accounts in the report belong elsewhere. A credit report can be obtained for free through AnnualCreditReport.com. If there are any mistakes or the activity on the credit report is fraudulent, the person can dispute it with the credit bureaus to prevent the score from being affected.

US mobile phone number

For many of these things you need a US mobile phone number. One provider that is inexpensive and easy to set up a number with is tello. You get an esim and do not need a physical sim card.

Be Patient and Consistent

Earning a credit score is a process that sometimes requires some time and is not a one-day affair. One must be disciplined, maintain a steady payback and a low credit utilization ratio, and avoid applying for credit frivolously. These habits will enable a person to build a good credit profile in any credit reporting bureau in the United States, even from a foreign country.

By doing so, you’ll be able to establish an American credit profile, and even if you come back to the US after several years, you will find it easy to secure other key financial opportunities in the US.