Building Credit History:

The pathetic situation in US is if you do not have credit history, they do not give loans. How will you create credit history if you do not get loans? Each credit transaction you make are reflected in your credit report. The number of times you have requested for credit, the amount sanctioned, the repayment pattern are all reported to the credit reporting agencies. Some useful information about Credit Report:

• Open a Checking/Savings Account. Do not overdraw your accounts.

• Do not apply for all credit cards. Applying for a credit card will result in a credit inquiry which will be reflected in your credit report. This is a biggest mistake Indians make on landing in US.
• If you have credit union membership facility, apply through them. They will be ready to give you credit card inspite of no credit history. Even if you have enough money to invest on a new car, get a car loan from the credit union and pay them in installments. This will build your credit history
• Apply for a secured credit card. Many of the banks like Wells Fargo will provide one. After a few months, you can apply for a regular unsecured credit card. If your track record is good, they will automatically issue an unsecured credit card.
• Apply for Retail Stores Credit Card. Pay their bills promptly. Bill payment details are reflected in your credit report.
• Changing companies and changing residential addresses are reflected in your credit report

• Ask a friend or family member to co-sign your credit card application. By co-signing, the person promises to pay if you don't meet the financial obligation on the card. After you have used the credit account for one year, you can apply for credit on your own.