Immigration to the United State of America has multiple financial aspects to it. As in other countries, the credit card quickly becomes a financial tool used on a daily basis. The use of credits cards in the United States can be different from what an immigrant was used to from their homeland.
Using a credit card in the United States includes conducting yourself carefully and responsibly to have en excellent Credit Score. Your credit score can make a differences in how you are perceived by anyone that you will need or want money from and/or have to pay. Your credit score is the most financially important identity you will have in the United States!
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In the United States, your credit score is an indication of how responsible you are with money, and how much can you be trusted. More than a monetary related issue, it is a financial-behavior indicator, that is quickly translated by lenders to trust. You credit score is a behavioral indicator of if you can or cannot be trusted with someone else's money.
The United States is a capitalistic country where money speaks volumes. Money is important, and trusting you with my money is super important. Understanding this means that you should care a great deal about your credit score, and it does matter if you are an American or an immigrant.
Credit scores range from 300 to 850; 300 being the lowest and worst credit score, and 850 being the highest and best credit score. Only a selected few percent of Americans and/or United States residents have a credit score of 850. Although not easy to have a credit score of 850 within the first years of your life in the United States, a few very simple actions could land you a credit score of above 800 within 2-3 years!
Important Credit Score Tip #1:
Pay your credit card balance every day!
Why pay your balance every day? - imagine giving money to someone else, and expecting it back as soon as possible. The person you gave the money to will seem more responsible and trust-worthy if they pay you back the loan the day after, rather than 30 days after. Paying back sooner = trust; Trust = higher credit score!
Important Credit Score Tip #2:
Never use more than 40% of your credit line for a single purchase/buy!
Why is this important? - Using your entire credit line for a single purchase/buy is perceived as dangerous and irresponsible. It means you are using up the entire credit given to you in one transaction. Credit card provider companies do not like that at all. You become a risk, even if it is only a $50 dollar purchase.
Important Credit Score Tip #3:
You credit score is a behavioral indication, not monetary!
Why is this important? - Because even if your purchases are just $400 dollars at a time, using up your entire credit line is an indication of dangerous behavior. The credit card provider company does not care about your bank account balance as much as knowing how much of a risk taker you are. By following tips 1 & 2, you are reducing to the minimum that chances of being perceived as a risk. This will encourage the credit card provider company to increase your credit line, and your credit score will follow by increasing as well.
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Important Credit Score Tip #4:
Avoid making purchases on the 13th of the month!
Why is this important? - Credit score generating companies tend to sample your credit card balance on the 13th of each month. This generates 12 numeric values that represent you. They cannot and will not analyze your credit card balance every day of the year. Thus, by avoiding having purchases appear on the 13th, you look better and less as a financial risk.
Important Credit Score Tip #5:
Increase !your credit line when possible!
Why is this important? - As you increase your credit line per credit card or multiple credit cards, the absolute amount of money that you can use for a single purchase goes up. For example, if you initial credit line is only $400 dollars, you should not spend more than $100 per purchase with this specific credit card. Once the credit line for the credit card goes up to $1,000, you can spend $400 for each purchase, causing you to use other options less.
Important Credit Score Tip #6:
Have more than one credit cars at a time!
Why is this important? - The more credit cards you have, the more available credit you have to purchase items and services without needing to relay on other options. Combined with the previous tips, your credit scores goes up very fast, and you are not perceived as a treat at all.
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Visionary Academics is dedicated to providing excellent services to individuals, companies, and academic institutions, related to the academic world and its diverse aspects. Curricula, program accreditation, talent acquisition, workshops and lectures, and personal mentoring are the main fields of service we offer. For more detailed information, and prices, please visit our Services page.
Important Credit Score Tip #7:
Stick to as few credit card provider companies as possible!
Why is this important? - The more credit cards you have with a certain company, the more they trust you, and the more/faster they will agree to increase your credit line.
Important Credit Score Tip #8:
Avoid having the credit card being reissued!
Why is this important? - The reissuing of a credit card can be perceived as the same as getting an additional credit card. Your credit score is going to go up and down frequently, yet it is best to avoid it going down as much as possible. Please note, the credit card provider will reissue the card automatically once it reaches its expiration date. This is not the same as you requesting to reissue it before its expiation date.
Important Credit Score Tip #9:
Use all of your credit cards equally!
Why is this important? - You will benefit from showing the credit card provider company that you are using all of the cards issued, and it will help you avoid using more than 40% of your credit line per purchase.
Important Credit Score Tip #10:
When needed - use a debit card or cash to supplement costs!
Why is this important? - It is the only way to avoid using more than 40% of your credit line per purchase and still purchase an item that costs more than 40% of your credit line.
Important Credit Score Tip #11:
Use your credit cards as much as possible without violating the advice given here!
Why is this important? - Purchases made with your debit card or in case, do not count towards your credit score, and will not help improve your credit score. Thus, you should aspire to use your credit cards as much as possible, as long as you are not violating the advice given in tips 1-10 above.
