How to Get Credit Score as an International Student

As an international student coming to the US for the first time (for a longer stay, not just visiting)  credit history is one thing that you will definitely want to have never heard of. At least in my personal experience…

My main issue is, coming to the US with no previous acquaintances or arrangements with the University, I was struck by the impossibility to get anything (a place to rent, phone contracts etc.) without credit history.

I just started wrapping my head around this issue and I wanted to share my experience so far. The main point is that I cannot yet boast with a good credit history, but at least I have one!

So…

1. A Few Things to Consider

You literally can not do much without at least some credit history. This includes, but is not limited to…

• renting an apartment
• signing a contract with a cell service provider
• obtaining a credit card
• getting a Macy’s card (more on this later)
• getting a Sears card
• Signing up for utilities contracts (this you can do, but will require a deposit)

I’m not saying that it’s impossible to get any of these, however things will get more complicated and you might have to pay a large deposit upfront (i.e. 3 months rent in advance, 300-500$ deposit for the phone contract etc.).

2. How can I get credit history?

Well, personal experience says that there usually are apartments available and landlords or agencies willing to rent to international students. I strongly suggest talking to the university you are attending because they usually have contacts in the real estate world. If not, they might at least put you in contact with previous students who can guide you in this process.

Once you rent an apartment, paying rent on time improves credit history. It also helps you maintain a roof over your head. Also note, that previous rental history is also important here if you plan to move somewhere else at some point, so try to keep a good relationship with the landlord/administration.

Once you have a place, its a good idea (if not mandatory) to pay electric or gas or some utility on your own. This means setting up an account with some utility provider. Keeping up utility payments in due time, also improves your credit score.

Having a campus job and regular income, also adds to your credit history. However, this usually is not a substantial worry for anyone since most Ph.D. positions come with a living stipend of some sorts, that counts as regular income.

Don’t apply for credit cards too soon or too often, being refused one actually decreases your credit score. (This information needs verification, it’s just hearsay).

3. What should I know beforehand?

There are a few things that you should therefore keep in mind before moving to the US for a graduate program:

• As a new customer with no credit history, you will most likely have to pay a deposit for any contract that you sign (utilities, cell service etc.) . I have payed 200$ deposit, in monthly 40$ payments for my electricity and I am guessing that is about the amount you should expect.  Cell phone contracts can require up to 12 months pre-payed so expect to be asked for up to 500$ in advance.
• sign up for a bank account as soon as you can, so financial and credit institutions can track your history
• it doesn’t take long for you to build credit history if you pay everything on time and you have a regular paycheck
• don’t apply for credit cards just yet, you will soon enough get pre-approved offers in your mail
• Don’t expect your first credit card to have a large credit limit (expect something like 500$)
• Use the credit card for bills or day-to-day purchases and pay everything back as soon as you can – it will look great on your credit history (I know it doesn’t make much sense, but it works…)
• Internet and TV service providers might not ask you for a deposit
• you don’t need a cell-phone contract right from the start, there are pre-payed SIM cards that you can buy for your phone, or no-contract plans.

Just to sum everything up, with other school expenses, rent and everything, you should be looking at about 5000$ that you need just to move in, set up, and live for the first few months while you get in a regular financial pace with income and billing.

I hope this helps international students. If anyone has more information on this, or feels that I am mistaken in my statements, please feel free to add/correct this post.