Credit has been a big part of American life for a long time now. It is very convenient to use credit products for various needs. All thanks to an uncomplicated procedure of obtaining and low interest rates. But a foreigner will have to spend some time and put some effort to get his first American loan.

The first thing you need to do is to have an SSN. Social Security Number is issued to those who have the right to work in the U.S. and are required to pay taxes on income. For salaried employees, everything is simple here. The employer will prepare all the documents necessary to obtain a Social Security card. And for students there is another option – campus work or paid internships.

Once you have the SSN, you can go to one or two banks and apply for a credit card. Choose a bank based on the interest rates and other terms offered.

To increase the chances of obtaining a credit card, especially for students and those who apply to a U.S. bank for the first time, you can order the so-called secured or insured credit card (secured credit card). This is a credit card insured by the client himself/herself with a deposit. It means that you pay a certain amount of insurance deposit for the card. A credit limit on the card you issue will be equal to the amount of that deposit. If the borrower can not repay the debt, the deposit will be written off against the debt.

A credit card is the first credit product a foreigner can count on. In addition, its correct, reasonable and active use will help build a good credit history. You will need it to apply for more serious loans (to buy a car or real estate).

Consumer credit and shopping is also popular in the United States. But in most cases it will be difficult to get them without an established credit history.

Credit History
Credit history is a record of all of a person’s credit transactions:

• When and what credit product was given to him or her
• when payments were made
• if there were any delays
• Whether the debts were repaid, etc.

Based on this information, the credit history is characterized as bad, average, good or excellent. It is clear that the better the credit history, the more chances the borrower has not only to get a loan for any purpose, but also better conditions on it (for example, lower interest rate).

Virtually all factors have an impact on credit history:

• Proper and regular use of credit cards (not “going into deficit” on the credit limit, not being late with payments, and so on)
• timely payment and repayment of loans for purchases
• absence of debts on utility and other payments
• How much money is spent, and others.
• Also important to building a good credit history is having other accounts, such as a deposit account. All of this shows how reliable and solvent the customer is.

You can open a secured credit card to build or improve your credit history. Despite the fact that the credit limit is insured by the borrower’s own funds, all transactions on this card are reflected in the credit history. In addition, banks are more willing to issue a secured credit card to a new client who does not yet have a reliable reputation and a high level of trust.