I came to the United States from India in June 2022 with a lot of hopes and dreams. My company was transferring me to their US offices. I had a decent job but little did I know that I would need to build my credit history from scratch in the US in order to get the best financial products like credit cards and loans. My credit score in India was 889 out of a possible 900 and I could not fathom the fact that this was of no value to any lender in the US.

I started my credit journey much like anyone else – by applying for a student credit card and a secured credit card. A secured credit card is a type of credit card that requires you to deposit a certain amount of money as collateral. This deposit is used to guarantee your payments, so it can be a good option for people with no credit history or bad credit. Secured credit cards typically have low credit limits ranging between $100-$300. A weekly visit to a grocery store can come up more than your credit limit. This can not only make this card consumer unfriendly but also make it difficult to build your credit score quickly.

I soon realized that I had made a mistake when I learned about Nova Credit in July 2022. Nova Credit is a company that helps immigrants use their foreign credit history to build credit in the United States. This is where my India credit score helped. I applied for a Nova Credit account based on my Indian credit report. An online application and a 5 minute phone conversation with a Nova Credit executive and I was approved for an American Express Gold Card. They were also kind enough to ship the card overnight at no cost. I received my card in 2 days. The cherry on top of that was I also was eligible to received the 60,000 Membership Reward Points® from American Express if I spent $4,000 in the first 6 months of my card membership.

I was so excited! I knew that this was the key to building my credit score quickly. I made sure to pay my bill on time every month, and my credit score started to improve rapidly. This was also something that got me interested in understanding the credit card rewards ecosystem and sowed the idea for The Smart Spenderz.

By December 2022, my credit score was 690+. I was able to get approved for an auto loan at an interest rate of 4.99% for a new car. The dealership shrugged me off when I told them that my credit history was less than 6 months. They mentioned that they provide auto loans at 19.99% interest for someone who has a credit history of 2 years or less. The story of how I managed to get the 4.99% interest is for another time but I wanted to drive the point home that anyone can build their credit, it requires discipline and patience. After that I was then able to apply for a better credit card – The Chase Sapphire Preferred with a higher limit. I continued to make my payments on time, and my credit score continued to improve.

By July 2023, my credit score was 758, exactly 12 months after I applied for my Amex card through Nova Credit. I am grateful to Nova Credit for helping me build my credit history in the United States.

Here are some of the benefits of using Nova Credit:

• You can use your foreign credit history to apply for credit products in the United States.
• This can help you get approved for credit cards, loans, and other financial products.
• It can also help you get a lower interest rate on these products.
• Nova Credit is a secure and reliable company.
• They have partnered with major lenders, including American Express.

If you are an immigrant like me who is looking to build your credit history in the United States, I highly recommend using Nova Credit. It is a great way to get a head start on your financial journey.

Here are some additional tips for building your credit score:

• Make your payments on time. This is the most important factor in determining your credit score.
• Keep your credit utilization low. Your credit utilization rate is the amount of credit you are using compared to your total credit limit. Aim to keep your utilization rate below 30%. 
• Payoff your credit card balance before your statement close date. If you’re just getting started on your credit journey, you will most likely have a lower credit limit. However if your card balance exceeds 30% of your credit limit at any time, focus on paying the excess beyond 30% before your statement close date as that is the date the your credit card balance is reported to the credit agencies, which in turn will impact your score.
• Don’t open too many accounts at once. Opening too many accounts in a short period of time can hurt your credit score.
• Get credit for paying rent and other monthly payments on time. Many lenders will report your auto loan, student loan, mortgage payments to the credit bureaus.
• Request a credit report and dispute any errors. If you see any errors on your credit report, be sure to dispute them.

By following these tips, you can build your credit score and achieve your financial goals.

I hope this blog post has been helpful. If you have any questions, please feel free to leave a comment below.