New to America. How to build credit?
February 21, 2013 10:36 AM Subscribe
I moved to America about a year and a half ago. My credit score is between 600 - 640 depending on the agency. I don't need credit now, but I want to buy a house later this year. How can I improve my credit given that I have no use for credit cards beyond the one I already have, and I pay cash for everything? Details inside.
posted by anonymous to Work & Money (13 answers total) 4 users marked this as a favorite
Through my employer I was able to open a credit card with a high limit that has been in good standing since then. I also opened a store card without realizing that it was a credit account with a bank that I detest. I closed the account immediately but not before a charge had been made to the card, which I corresponded with the bank about, as I was unable to get any information about what the charge was for. I still have not received that information, but paid the account to avoid getting into worse credit issues. Now there is a delinquent account of about $100 on my credit history. I will not make that mistake again.
I keep being told that the way to build credit is to open & use more credit accounts - but this seems insane to me. I have plenty of money, I don't need credit for anything. I use my credit card for travel, I never even approach the limit and I pay it off every month in full. Will my low score and delinquent account affect my ability to get a home loan? Is there anything I can or should do in the interim to improve my score? Am I overthinking this?