Foreign credit history: how to use it in the US

Step by step

1. 1

   Know what stays behind

   Your credit file stays in your home country. Equifax in the US, for example, has a file on you only after a US company that reports to it gives you credit. Paying with a debit card or a prepaid card does not build that file.

2. 2

   Check if Credit Passport covers your country

   Nova Credit's Credit Passport works with a credit history from 16 countries, including Mexico, the Dominican Republic, Brazil, India, the Philippines, Nigeria, Canada and the UK; the full list is on the card below. It turns your home report into a US-style report that a lender can read, and Chase and HSBC use it for newcomers. If your country is not on the list, go to step 4.

3. 3

   Use it inside the lender's application

   Credit Passport is not sold to you on its own. You turn it on in a partner's credit application, give consent, and enter the details the credit bureau in your home country needs to find your file. The lender decides with that report, and the card or loan you get starts your US history once the lender reports it.

4. 4

   Have an Amex card from home? Ask for a US one

   American Express can give you a US card based on a card issued by American Express in another country (not by a partner bank) if you have been its primary cardholder for at least 3 months and have a US address, phone number and bank account. The application asks for your passport details and an SSN or ITIN.

5. 5

   Get an SSN or ITIN and open a secured card

   Most US card applications ask for an SSN; if you cannot get one, Capital One accepts an ITIN for its secured cards. With a secured card, your refundable deposit sets the limit: Capital One Platinum Secured asks $49, $99 or $200 for a $200 line. Make sure the issuer reports to the credit bureaus.

6. 6

   Add a credit builder or rent reporting

   A credit builder loan works the other way around: the lender locks $300-$1,000 in an account, you pay it off over 6 to 24 months, and the payments go to all three bureaus. Extra, a debit card linked to a credit line, reports to Equifax and Experian and accepts an ITIN with a US government ID, from $20 a month. Self reports your rent to all three bureaus for $6.95 a month.

7. 7

   Pay on time and use little of your limit

   On time means the payment reaches the company by the due date, so send mailed payments a few days early. Some experts advise using no more than 30% of your credit limit, others less than 10%. Once you have a file, check your free credit reports at annualcreditreport.com to see that your accounts are there.