- One of the mysterious topics when moving from a foreign country to the US is the credit score. It is a statement on how credit-worthy a person is.
- In order to achieve this credit-worthiness however, you have to have credit accounts and manage them responsibly.
- E.g. unlike in Europe, where savings and income are the main measure, in the US the key is to have about 2-5 credit accounts open that you pay on time.
- The available information results in a score where 750 is considered "good credit". That will usually get you approval for all major credit cards, as well as approval for good interest rates on loans.
- It's a bit of a game, sometimes it may mean that financing a car may be more beneficial in the long run than paying in cash - especially if you plan to borrow money for a house and hope for a good interest rate for the loan.
- It seems that it takes at least 6 months for immigrants to have a Credit Score at all - noticeable by pre-filled credit card application starting to arrive via mail.
See also:
- FTC - How Credit Scores Affect the Price of Credit and Insurance
- AnnualCreditReport.com - Get your free annual Credit Report from the 3 major instituitions
