How to Build Credit as an Immigrant or Someone New to the U.S. Financial System

Do one thing: One great way to build credit as an immigrant is to make sure you get credit for the bills you pay monthly, such as rent and utilities. Contact your landlord and utility providers and ask that your payments get reported to the major credit bureaus. Just be sure to stay current and pay on time (every time) to make the most progress. 

Millions Without Credit in the U.S.

Building credit in the United States can sometimes be more difficult when you’re new to the country — when you have no Social Security number, no credit history, or a credit history that can’t be easily transferred from your home nation. 

Besides those who are new to the U.S., younger adults and those who haven’t used credit cards or taken out loans in recent years may also find it more challenging to build credit. There are literally millions of people – who are sometimes known as credit invisible – living in the U.S. Consider these figures:

• 2.7% of American adults – about 7 million people – don’t have credit files, according to the Consumer Financial Protection Bureau.
• 32 million U.S. adults have been described as unscorable for credit because they don’t have enough traditional credit files on record. 

Different Ways to Build Credit as an Immigrant

Fortunately, there are several steps you can take to build credit in the U.S. for those new to the country or its financial system.  

Get an Individual Taxpayer Identification Number (ITIN)

To be compliant with U.S. tax laws, immigrants and nonresident aliens working in the U.S. without a Social Security number (SSN) can apply for an Individual Taxpayer Identification Number (ITIN) by visiting IRS.gov and following the steps to fill out a Form W-7. 

What is an ITIN?

An ITIN is a tax-processing number issued by the IRS to make sure those working in the U.S. pay taxes. While it’s not what it was originally intended for, an ITIN is also accepted by many financial institutions by people looking to open a checking or savings account who don’t have a Social Security number. 

Here’s some more insight on what you need to know about ITINs

Nova Credit Passport to Build Credit as an Immigrant

For immigrants from certain countries – including:

• Australia
• Canada
• India
• Mexico
• United Kingdom

The San Francisco-based firm Nova offers a credit passport program that allows users to transfer over credit information to calculate a new credit score for some lenders, including landlords. Those who use the program share their banking records, along with other income data, according to a case study by Mastercard.  

Become an Authorized User

Certified financial planner Alvin Carlos, CFA, a managing partner at District Capital Management in Washington, DC, says becoming an authorized user on someone’s established credit card can help build a credit file faster. This is sometimes how parents help their children build credit. Typically, the card and its payment history are reported to the credit bureaus, provided the issuer reports authorized users. Charges appear on one bill, so the credit card owner must collect payment from the child (or other user) and ensure the bill is paid on time each month. 

• Credit building tip for immigrants: It’s important to remember that even one late payment can hurt the credit scores of everyone on a credit card account.

Consider Secured Credit Cards

While they look and work much like a regular credit card, secured credit cards typically require a security deposit to the lender as collateral.

How Secured Cards Work

You pay the credit card issuer a set amount, typically a few hundred dollars, and then you can charge up to that limit each month. If you use and pay off the secured card regularly for 12 to 18 months, it should typically transition to a regular unsecured credit card.

• Credit building tip: Make sure to choose a secured card that reports to the three main credit bureaus. If you have doubts, call the credit card issuer and confirm that they do.

Who to Reach Out to For Help

• Credit unions and community banks, says Carlos, are often far friendlier to people with thin credit files than larger financial institutions. 
• One option is to apply for a credit card through a financial institution where the customer already has a checking or savings account, says Hardik Patel, founder and financial advisor of Trusted Path Wealth Management, LLC in California. If approved, it’s important to understand that the credit limit is likely to be very small at first. 

What’s the Timeline for Building a Credit Score for Immigrants?

You generally need about six months of positive activity before the major scoring systems will generate a score, notes Carlos. A solid score takes a little longer, he says, but a year of on-time payments and low balances puts most people in good shape, he explains, adding, “My niece got a secured card around September 2025. By April 2026, she was already getting mail on pre-approved credit cards.”

With reporting by Casandra Andrews