{"id":684,"date":"2021-09-17T16:35:43","date_gmt":"2021-09-17T16:35:43","guid":{"rendered":"https:\/\/aberdeensd.com\/?page_id=684"},"modified":"2023-10-02T14:30:25","modified_gmt":"2023-10-02T14:30:25","slug":"establishing-credit","status":"publish","type":"page","link":"https:\/\/aberdeensd.com\/establishing-credit\/","title":{"rendered":"Establishing Credit"},"content":{"rendered":"

Establishing Credit in Aberdeen, South Dakota<\/h4>\n

What is a credit score?<\/h2>\n

Your credit score (FICO) is a number used by credit reporting agencies to represent your credit history. It is important to have a good credit score so you can buy a house or car in the future. When you apply for a loan or a credit card, creditors will request a copy of your credit report which includes your credit score. Your history of how you pay your bills (credit score) is recorded by a credit reporting agency. Keep reading to learn more about establishing credit in the United States.<\/p>\n

Personal Credit History<\/h4>\n

Credit history is a record of a consumer’s ability to repay debts and demonstrated responsibility in repaying debts. A consumer’s credit history consists of information such as: number and types of credit accounts, how long each account has been open, amounts owed, amount of available credit used, whether bills are paid on time, and number of recent credit inquiries. It also contains information regarding whether the consumer has any bankruptcies, liens, judgments, or collections. This information is all contained in a consumer’s credit report.<\/p>\n

Potential creditors, such as mortgage lenders and credit card companies, use the information in a consumer’s credit history to decide whether to extend credit to that consumer. This information is also used to calculate the consumer’s FICO score. All this takes part in establishing your credit.<\/p>\n

Building Credit in the United States<\/h4>\n

Credit history usually applies to only one country. Even within the same credit card network, information is not shared between different countries. For example, if a person has been living in Canada for many years and then moves to the United States when they apply for credit cards or a mortgage in the U.S., they would usually not be approved because of a lack of credit history, even if they had an excellent credit rating in their home country and even if they had a very high salary in their home country.<\/p>\n

An immigrant must establish a credit history from scratch in the new country. Therefore, it is usually very difficult for immigrants to obtain credit cards and mortgages until after they have worked in the new country with a stable income for several years. Establishing credit does take time and patience.<\/p>\n

Transferring Credit Accounts<\/h4>\n

Some credit card companies (e.g. American Express) can transfer credit cards from one country to another and in this way help start a credit history.<\/p>\n

What Do I have to have in order to get a credit card?<\/h4>\n

1. Personal information such as date of birth, home address, and telephone number
\n2. A regular income
\n3. A good record of paying your bills on time<\/p>\n

Credit Cards can be expensive! Understand the fees you have to pay for your credit card. Some credit cards require an annual fee.<\/p>\n

Important Things To Know<\/h2>\n

Do not apply for every credit card application you receive. This will have a negative impact on your credit score. Keep your credit card balances low. High balances will have a negative impact on your credit score. You should try to pay your balance in full.<\/p>\n

Important Words to Know When Establishing Credit:<\/h4>\n

Annual Percentage Rating (APR)- The APR is a measure of the cost of credit expressed as a yearly interest rate. Usually, the lower the APR, the better. Be sure to check the fine print to see if your offer has a time limit. Your APR could be much higher after the initial limited offer.<\/p>\n