Building a solid credit history is key for anyone living in the United States—especially for Brazilians who are new to the country. Good credit can open doors to many financial opportunities, like buying a home or car, getting personal loans, or qualifying for lower interest rates. In this article, we’ll share essential tips to help you build and improve your credit in the U.S. safely and effectively.
1. Understand the U.S. Credit System
First things first—understand how credit works in the U.S. Unlike Brazil, where your CPF is tied to your credit, the U.S. uses a credit score system, usually the FICO Score, which ranges from 300 to 850. Your score is based on factors like payment history, debt levels, length of credit history, and more.
2. Get a Starter Credit Card
One of the first steps is applying for a credit card. Without a U.S. credit history, it might be hard to get a regular card. In that case, look for secured credit cards—these require a deposit as collateral and help you build your credit over time. Always pay your balance on time to start improving your score.
3. Always Pay Bills on Time
Payment history is the most important factor in your credit score. Make sure to pay all your bills—rent, utilities, and especially credit card bills—on time. Late payments can seriously hurt your score and limit your financial options down the road.
4. Check Your Credit Report Regularly
Review your credit report at least once a year. You can do this for free at Equifax, TransUnion, or Experian. Keeping an eye on your report helps detect errors or fraud. If you find something unfamiliar, report it immediately.
5. Avoid Excessive Debt
Using credit is important to build a score, but don’t overdo it. Try to keep your credit card balance below 30% of your credit limit. High balances can signal financial risk to lenders and lower your score.
6. Consider a Co-signer
If you’re having trouble getting approved for credit, ask a trusted friend or family member with good credit to co-sign your application. This can improve your chances, but remember—they’ll be responsible if you don’t make payments, so only do this with someone you trust.
7. Build a Long Credit History
The longer your credit history, the better. So once you have a credit card, try not to close it—even if you don’t use it often. Keeping old accounts open and in good standing shows lenders that you manage credit responsibly over time.
8. Use Small Loans to Diversify Your Credit
Once you’re managing your credit card well, you might consider taking out a small personal loan or financing a car. This helps diversify your credit profile and proves you can handle different types of credit responsibly.
9. Limit Credit Inquiries
Every time you apply for credit, a hard inquiry is made, which can slightly lower your score. Avoid applying for multiple credit lines in a short period, as this might look like financial distress. Only apply when you truly need it.
10. Be Patient and Consistent
Building credit in the U.S. takes time. Stay consistent with on-time payments, keep your debt levels low, and avoid unnecessary applications. With discipline and patience, your credit score will grow—and so will your financial opportunities.
Conclusion
Starting from scratch with credit in the U.S. can feel overwhelming, especially for Brazilians with no local history. But by following these tips, you’ll be on your way to building a strong credit profile and unlocking better financial opportunities in the future. Remember: discipline, patience, and smart credit management are the keys to long-term success.
