Immigrating to the United States is the dream of many people. Immigration is not only a process of changing nationality, but also opens a door to a new world, with different groups of people, a different social order, and a more complete The welfare system and a better educational environment are the rewards for your efforts! Immigration consultant Jin Zhengyuan said that after immigrating to the United States, you need to pay attention to personal credit issues. 86’s introduction mainly involves three aspects: 1. It is an organization that collects and evaluates personal credit information. , that is, a personal credit investigation company;

2. It is the “consumer” of personal credit, financial institutions, employers and other departments;

3. It is the generator and producer of personal credit information A supervisor is an individual.

The healthy operation of these three forces has formed the now developed personal credit system in the United States.

For new immigrants, a good credit record is very beneficial because it affects many aspects of life loans. If you don’t have good credit, not only will you not be able to get good interest rates, you’ll also be unable to get a loan.

For example, for the same 36-month, $25,000 car loan, a person with a credit score between 500-589 will pay $891 per month, while a person with a credit score between 720-850 will pay $891 per month. People only need to pay $732. Similarly, for a 30-year, $300,000 home loan, someone with a credit score between 620 and 639 would have to pay $1,572 per month, while someone with a credit score between 760 and 850 would only have to pay $1,298. Nowadays, home loan checks are very strict, and income and credit are required.

In American society, "credit" is very specific and usually refers to your credit score. So, what are the important factors that affect personal credit scores? How to accumulate credit scores based on them?

Currently, 90% of lending institutions use the FICO credit score system, and FICO credit scores are average. Between 300 and 850 points, FICO's score consists of five parts:

First, payment history, accounting for 35%. It reflects whether the previous borrowings have been repaid in time;

Second, it is the amount owed (amounts owed), accounting for 30. Generally speaking, it depends on the ratio of the amount you owe to the amount of credit;

Third, it is the length of credit history (credit history), accounting for 15. The longer the credit record, the higher the credit score;

Fourth, it is the type of credit you use (types? of? credit? used)?, accounting for 10. Your credit cards, small loans, installment payments, financial accounts, and mortgage loans are all considered;

Fifth, it is a new card application (new credit? accounts), accounting for 10. According to research, the risk is very high if you open multiple credit accounts in a short period of time, especially if you have a short credit history. Applying for too many credit cards in a short period of time will have a negative impact on your FICO credit score.

In the United States, there are three major credit reporting agencies: Equifax, Experian and Transunion, which are responsible for everyone’s credit evaluation.

These three major credit reporting agencies conduct separate evaluations. On different occasions, the middle number may be used as your credit score for evaluation.

People living in the United States with zero or low credit scores will not only find it difficult to borrow money, but their daily lives may also be affected. Therefore, it is very important to establish a credit record from scratch. The first step in establishing credit is to obtain a social security number. After obtaining the social security number, you must bind the social security number to your bank account and pay your bills on time ( Such as water and electricity bills, rent, phone bills, etc.).

Generally speaking, it is difficult to apply for a credit card if you just have a social security number. You can apply for a secured credit card first. The more common one is Wells Fargo's secured credit card. This kind of credit card requires a deposit equal to the credit. For example, a $1,000 credit card requires a $1,000 deposit, and then you can gradually build up credit by paying off the bill on time every month.

So, what kind of credit score is good? It’s just like upgrading a game. Basically, if it’s below 650, you don’t want to apply for a credit card. You can apply for a general card of about 675, but the prerequisite is that your credit score must be more than 1 year old. With a score of 700 or above, you can apply for basically all cards, but the prerequisite is that your credit history must be more than one year. Otherwise, no matter how high the score is, the bank will not accept the account.