Do International Students Have a Credit Score in the U.S.?

The U.S. financial system presents a challenge for international students. It heavily relies on a credit score, a three-digit number acting as a financial reputation. International students often arrive without prior credit history, making them “credit invisible.” Establishing a U.S.-based credit history is foundational for financial independence and accessing services.

Fundamentals of Credit Scores

A credit score is a numerical assessment of an individual’s creditworthiness, indicating how likely they are to repay borrowed money on time. The most widely used credit scoring model is the FICO Score, which ranges from 300 to 850. Lenders, utility companies, landlords, and even some employers use these scores to evaluate risk, determine interest rates, and set terms for financial products and services. A higher score generally signifies lower risk and can lead to more favorable terms, such as lower interest rates on loans.

Credit scores are calculated based on data within an individual’s credit report, which is maintained by three major credit bureaus: Experian, Equifax, and TransUnion. Five primary factors contribute to a FICO Score:

Payment history (35%): Reflects on-time bill payments.
Amounts owed (30%): Proportion of available credit used.
Length of credit history (15%): Favors older accounts.
New credit (10%): Reflects recent applications.
Credit mix (10%): Variety of credit accounts (e.g., credit cards, loans).

Building Credit as an International Student

Establishing a credit history in the U.S. as an international student requires understanding specific requirements and utilizing targeted financial products. Before applying for credit, certain documentation and identifiers are necessary. These include:

Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
Proof of enrollment (I-20 or DS-2019 form)
Valid passport
Visa
Proof of U.S. address and income

A common strategy for international students to build credit is through a secured credit card. These cards require an upfront cash deposit, which becomes the credit limit, mitigating risk for the lender. By using the card responsibly and making timely payments, the activity is reported to credit bureaus, thereby establishing a credit history. Another option is a credit-builder loan, where a sum is deposited into a locked savings account, and the borrower makes regular payments; once repaid, funds are released and payment history is reported.

Becoming an authorized user on another individual’s credit card can also help build credit, provided the primary cardholder manages the account responsibly. The authorized user benefits from the primary user’s positive payment history appearing on their own credit report. However, it is important to ensure the primary user is financially disciplined, as their late payments could negatively impact the authorized user’s developing credit profile. Some services also allow for reporting rent or utility payments to credit bureaus, which can contribute to a credit history, although this is not universally available and may involve third-party platforms.

Maintaining and Improving Your Credit

Once a credit foundation has been established, maintaining and improving a credit score involves consistent, responsible financial behavior. The most impactful action is making all payments on time. Payment history is the largest component of a credit score, and even a single payment reported 30 days or more past its due date can significantly lower a score and remain on a credit report for up to seven years.

Managing credit utilization is another important aspect. This ratio represents the amount of revolving credit currently being used compared to the total available credit. It is advisable to keep this ratio low, ideally below 30% of the total credit limit, to demonstrate responsible credit management. Higher utilization can indicate a greater risk to lenders.

Regularly monitoring credit reports is also important to ensure accuracy and identify any errors. Individuals are entitled to a free copy of their credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion) once every 12 months through AnnualCreditReport.com. If an error is found, it should be disputed promptly with both the credit bureau and the entity that provided the incorrect information. Maintaining accounts over time also benefits a credit score, as the length of credit history is a contributing factor. Diversifying credit types, such as revolving accounts (like credit cards) and installment loans (like student loans), can also positively influence a credit score.