You’re New Here, So Let’s Start with the Basics
Do you remember that feeling when you first landed in America?
The excitement, the jet lag, that tiny knot of fear and anxiety in your stomach? I've been there! I’m here to tell you that it doesn’t have to be overwhelming.
This guide will walk you through the essential steps, just like I wish someone had done for me.
1. Get a Social Security Number (SSN)
What it is: Your SSN is your financial ID card in the US - a unique 9-digit number used to track your lifetime earnings and benefits. Keep this card in a safe place with all your other important documents.
Why you need it: You'll need it for everything from opening bank accounts and getting a job to paying taxes and accessing government benefits.
How to get it: Apply online for free through the Social Security Administration website.
What if you're not eligible for an SSN?: Depending on your visa, you may not be eligible to apply for an SSN. In that case, you can apply for an ITIN (Individual Tax Identification Number).). This number will function similarly to an SSN. It won’t authorize you to work in the US or provide eligibility for Social Security benefits, but this will allow you to open up a bank account and file your taxes.
2. Open a Bank Account
Why you need it: A bank account is essential for managing your money, receiving payments, paying bills, and building a credit history in the US.
Don't rush: Research different banks! Some offer better rates or services for newcomers.
Consider a physical branch: While online-only banks have many enticing offers, having a physical location can be helpful for face-to-face assistance when you're just starting.
3. Apply for a Driver's License or State ID
Why you need it: Even if you don't plan on driving immediately, a driver's license or state ID card serves as a primary form of identification in the US. This way, you won’t have to bring your passport everywhere you go.
How to get it: Visit your local Department of Motor Vehicles (DMV) website to understand the requirements and application process in your state. This will vary but will usually require 6 points of identification (passport, visa, US credit or debit card, Social Security Card, etc.)
Essential for many things: From driving to opening accounts, a state-issued ID is crucial.
4. Start Building Your Credit Score
What it is: Think of your credit score as your financial GPA in the US. It's a number that represents your creditworthiness, showing how responsible you are with debt.
Why it matters: A good credit score is crucial for getting loans, renting apartments, opening credit cards, and even landing certain jobs.
How to build it: We'll cover this in detail in the next section, but here's a sneak peek: Use credit responsibly, pay your bills on time, and build a positive credit history. And remember, your credit score is tied to your SSN.
Building Credit as a Newcomer
An excellent credit score is your golden ticket to better financial opportunities in the US. But without a credit history, it can feel sort of like a Catch-22 - you need a credit history to get a loan, but you can’t get a loan without a credit history.
But don't worry, we have three tips on how to build your credit.
Your First Steps Towards Creditworthiness:
Remember how important your Social Security Number (SSN) or Individual Tax Identification Number (ITIN) is? Lenders use them to verify your identity and check your credit history (which you won’t have yet – and that’s totally okay!).
And that bank account you just opened? That's another plus! It shows that you're responsible with money. Now, let’s talk about how to build that credit score from scratch:
1. Secured Credit Cards
What it is: These are like baby credit cards that banks give you to see if they can trust you. You open up an account with them, put down a security deposit (around $500 to $1,000), and that becomes your credit limit.
Why they’re great: These cards are specifically designed for building credit from scratch.
How to use it: Use the card for small purchases (groceries, gas) and pay the bill IN FULL and ON TIME each month. This shows lenders you're trustworthy. Eventually, you can upgrade this card to an actual credit card, but build that credit score first!
Example: I used Capital One when I started out since they were the first ones who mailed me an offer.
2. Become an Authorized User
What to do: This might be a big ask, but if you know someone with good credit who trusts you, ask them to add you as an authorized user on their credit card.
Why they’re great: You get a card with your name on it, but you’re not financially liable for the bill. You don’t even have to use the card, their good credit behavior will reflect positively on your credit report, giving you a nice boost!
3. Track your progress
Free Credit Monitoring: This used to be so much harder back in the early 2000’s, but it’s so much easier to track your credit score now. You can sign up for a free Credit Karma account and you’ll get access to your credit reports from TransUnion and Experian (two of the three major credit bureaus here in the US, the other one is Equifax).
Why it matters: You’ll catch any errors or potential identity theft early on. And watching your credit score climb is super motivating! I still check mine once a week.
Set Yourself Up for Success!
Building good credit takes time, but it’s SO worth it. Here are some golden rules to remember:
Pay your bills on time, EVERY time! Set calendar reminders, use autopay – whatever it takes!
Keep your credit card balances low. Aim for less than 30% of your credit limit.
Don’t apply for too much credit at once. This can make you look risky to lenders and lowers your credit score temporarily.
Keep in mind that building credit is a marathon, not a sprint. Keep at it, and you’ll be amazed at the doors that open for you! Keep your score higher than 720 (which is considered excellent) and you’ll be golden.
Resources for Newcomers
By taking these first steps and connecting with the resources available, you’re laying the foundation for a bright financial future in the US. We’re here to support you every step of the way!
📖 USCIS Newcomer's Guide
You can find in-depth practical advice on housing, education, healthcare, and more, provided by the USCIS! They even include a link to a downloadable PDF that serves as a comprehensive guide to help you settle into everyday life here in the US.
🤝 Immigrant Journey
Read stories from other immigrants and get some financial tips and tricks.
🙌 Our Team
We're here to help! Subscribe to our mailing list or follow us on social media for ongoing financial tips and support.
Want more tips on managing credit, choosing the right financial products, and reaching your financial goals in the US? Subscribe to our mailing list or follow us on social media – we’re here to help!