What You Need to Know About Credit Scores in the U.S.

If you’re an international student in the United States, you’ve probably become familiar with the term “credit score” while considering renting an apartment, buying a car, or even setting up a phone plan. Unlike in many countries where credit history is less visible or centralized, your credit score in the U.S. plays a major role in your financial life.

Though your credit score may not be on your radar during your studies, it’s important to understand what it is and start laying the groundwork to build a strong credit score after you graduate.

What Is a Credit Score?

A credit score is a three-digit number meant to give a simple representation of how reliable you are as a borrower. In the U.S., credit scores are used by banks, landlords, lenders, and even some employers to assess financial responsibility.

The most commonly used score is the FICO score, which ranges from 300 to 850. The higher your score, the more trustworthy you appear to lenders.

Your credit score is calculated by bureaus such as Experian, TransUnion, and Equifax. These companies track how much you borrow money over time, and calculate your credit score for you based off your credit history.

How Are Credit Scores Calculated?

Credit scores are primarily calculated based off your reliability in repaying loans/credit requests. This can include for things such as student loan payments, car payments, credit card payments, etc.

In most cases, loans that are based in your home country or outside the U.S. will not have an affect on your U.S. credit score.

The exact way scores are calculated vary – but the key things to look for are:

• Payment history - Whether you pay your bills on time. Late or missed payments hurt your score the most
• Credit utilization - How much of your available credit you’re using. Using less than 30% of your credit limit is ideal
• Length of credit history - How long you’ve had credit accounts open
• Credit mix - A combination of credit types (credit cards, loans, etc.)
• New credit inquiries - How often you apply for new credit

Why Do Credit Scores Matter for International Students?

Even if you don’t plan to stay in the U.S. long-term, your credit score can affect you in very real ways during your studies and work authorization period.

A credit score may impact your ability to:

• Rent an apartment without a large security deposit
• Get approved for a U.S. credit card
• Buy or lease a car
• Set up utilities or phone plans without upfront deposits
• Buy a home/take out a mortgage with a lower interest rate

Having a weak credit score can limit your opportunities in these areas and can lead to increased costs down the road – so it’s important you are keeping your credit health in mind as you plan financially for your studies.

Do You Need an SSN to Get a Credit Score?

In simple terms – no, you do not need a social security number (SSN) to get a credit score. However, SSNs are the main identifier credit bureaus use so if you don’t have one, it can lead to tracking issues.

If you want to start building credit without an SSN, you need to either apply for an Individual Taxpayer Identification Number (ITIN) or rely on alternative methods such as applying for secured credit cards that can link to your name, date of birth and address.

As a reminder a social security number (SSN) is required if you receive income from an employer in the U.S., such as through:

• On-campus employment
• CPT (Curricular Practical Training)
• OPT or STEM OPT

Once you receive your SSN and link it to your outstanding loans, credit bureaus can begin pulling your history and calculating your credit score.

How Do I Check My Credit Score?

You can check your credit score through many banks, credit card issuers, and financial apps once you have an SSN and active credit history. Many services offer free score monitoring without affecting your credit. You can also request free annual credit reports from major U.S. credit bureaus to review your credit activity.

How to Start Building Credit as an International Student

Building credit takes time, but starting early makes a huge difference. Here are some tips on how to begin building credit:

1. Open a Starter Credit Card

The simplest way to start building credit is to apply for a starter credit card or secured credit card sponsored a U.S.-based bank.

Applying for a credit card typically takes the least amount of procedural work – and can provide you benefits such as cashback, travel credits, etc.

2. Use Your Card Responsibly

Though a credit card is an easy starting point, this only applies if you use it responsibly:

• Use your card for small, regular purchases
• Pay the balance in full every month
• Never miss a payment
• Keep your usage below 30% of your credit limit

3. Pay All Bills on Time

Some rent, utility, or phone payments may be reported to credit bureaus, depending on the provider. Consistent on-time payments show financial responsibility.

4. Avoid Applying for Too Much Credit

Though you should aim to have multiple credit lines to build a strong score, it is more important to ensure you are able to make the payments. Don’t bite more than you can chew.

A credit score in the U.S. is more than just a number - it’s a financial passport that affects your options today and in the future. By understanding how credit works, using credit carefully, and staying consistent, you can set yourself up for long-term financial success in the United States.

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