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What does a new immigrant (H1B employee) need to know about credit scores and credit history?

Question:

What does a new immigrant (H1B employee) need to know about credit scores and credit history?

Credit Score:

The credit score is the important factor that banks will combine in their consideration for a loan. A high credit score will increase the possibility that banks will approve loan requests.

Answer and Explanation:

There are some tips to maintain a high credit score:

  • Debt utilization rate: 10% or less.
  • Payment: Pay debt on-time.
  • Several credit cards: Do not open many credit cards.
  • Account mix: The mix of credit card account, auto loan and mortgage loan would indicate the ability to pay off debt.

H1B employees will be allowed to work in the U.S and will receive the SSN as well. The credit score calculated for H1B employees will be treated as a U.S citizen.


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