Resources Money, food, benefits and taxes
Building credit from zero
Your credit history is a record of how you repay debts. In the United States, banks, landlords and lenders look at it. The federal Consumer Financial Protection Bureau (CFPB) says a good history helps you get housing, a bank account, a credit card and a loan at lower interest. If you have just arrived, you most likely have none, so you start small.
Credit builds slowly, and you can start with a small amount. QARAVAN does not give financial advice; free City and federal services can help with your situation.
Start here
- Pay your bills on time: the CFPB calls on-time payments the number one factor in a credit score (the number lenders use to judge you).
- A debit card, cash, a prepaid card and payday loans do not build credit: they are not reported to the credit reporting companies.
- Start with a secured credit card or a credit builder loan. Ask your bank or credit union whether they take customers without an SSN.
Payments on some loans and cards are reported to the three nationwide companies that keep credit reports: Equifax, Experian and TransUnion. Others are not.
What helps build credit (CFPB)
| Does it build credit | How it works | |
|---|---|---|
| Secured credit card | Yes | You put down a deposit, for example $500, and spend up to that amount; payments are reported. |
| Credit builder loan | Yes | A bank or credit union gives a loan and holds the money in your savings; you repay it in small payments, usually over 6 to 24 months, and get the money at the end. |
| Store or gas station credit card | Yes | The credit limit is usually low, so a large bill is less likely to pile up. |
| Debit card and cash | No | You spend your own money rather than borrow, so nothing is reported. |
| Prepaid card | No | You can spend only the money you deposited beforehand. |
| Payday loan | No | Even if you pay on time, payments are not reported to the credit reporting companies. |
| "Buy here, pay here" car loan at a dealership | No | Dealers often report only negative information, such as late payments. |
Open a bank or credit union account
You need an account first. The bank or credit union that holds it often offers credit-building products too.
Ask about a starter product
The CFPB suggests asking your bank, credit union or a nonprofit credit counseling agency about cards and loans for people starting or rebuilding credit. Ask whether it needs an SSN or an ITIN (a tax number for people who cannot get an SSN), and what it costs.
Pay on time, every time
The CFPB says most scoring models treat repayment history as the number one factor. Automatic payments or reminders help. If you missed a payment, get current and stay current.
Stay far from the card limit
Many experts recommend using less than 30 percent of your limit; people with the highest scores often use less than 10 percent. You do not need to carry a balance: paying it in full each month is best.
Apply only for credit you need
Many applications in a short time can look to lenders like a sign of money trouble. Apply only for credit you need.
Check your reports
Look at your reports and fix errors. If you have an old card you do not use, keep an eye on it so an identity thief does not use it.
Open AnnualCreditReport.com
Once a week you can see a free report from each of the three companies, Equifax, Experian and TransUnion: one, two or all three.
Or order by mail
Mail the Annual Credit Report Request form to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
Beware of paid sites
The CFPB warns that some sites advertising free reports give them only with a purchase, or bill you later for services you must cancel. The free report required by law is at AnnualCreditReport.com.
Write to the credit reporting company
Explain in writing what is wrong and why, and include copies (not originals) of supporting documents. Give your full name, address and phone number, the report confirmation number if you have one, and the account number of each disputed item; highlight them on a copy of your report. For proof of delivery, send it by certified mail with a return receipt.
Write to whoever supplied the wrong information
Credit reporting companies get information from your bank, landlord, credit card company and others (furnishers). Write to them too, preferably by certified mail; the CFPB says they generally must investigate and respond within 30 days.
If it is identity theft
If the error may come from identity theft, go to IdentityTheft.gov to report it and get a recovery plan.
If you are not heard
File a complaint about a credit report problem with the CFPB.
AnnualCreditReport.com
Any statusFree
The site where free credit reports are provided by law: once a week from each of Equifax, Experian and TransUnion. You can also order by mail.
Equifax
Any statusFree
One of the three nationwide credit reporting companies. You can dispute an error online or by mail.
Experian
Any statusFree
One of the three nationwide credit reporting companies. You can dispute an error online or by mail.
TransUnion
Any statusFree
One of the three nationwide credit reporting companies. You can dispute an error online: dispute.transunion.com.
Lower East Side People's Federal Credit Union: Saving & Credit Builder Loan
Any statusNYC residentsLow cost
A credit builder loan: from $500, for up to 24 months, with no application fee. The union says it helps members build credit without a lump sum upfront.
NYC Financial Empowerment Centers
Any statusNYC residentsFree
Free sessions with a financial counselor to check a credit report, make a budget and deal with debt. You must be 18 or older and live or work in New York City; income and status do not matter. Book online: a866-dcwpwb.nyc.gov/talkmoney/book-appointment.
Consumer Financial Protection Bureau
Any statusFree
The federal agency that protects consumers of financial products: it explains how to build credit and takes complaints about credit reporting companies. File one online: consumerfinance.gov/complaint.
- Credit report
- A record of your loans and payments, kept by each of three companies: Equifax, Experian and TransUnion.
- Credit score
- A number calculated from your report; lenders use it to decide whether to lend to you.
- Secured credit card
- A credit card you secure with a deposit: you put in an amount, for example $500, and can spend up to it.
- Credit builder loan
- A loan where the money is held as your savings while you repay it in small payments. At the end the money is yours, and the payments go into your credit history.
- Credit limit
- The most you can borrow on a card.
- Furnisher
- A company that reports information about you to the credit reporting companies, such as a bank, landlord or credit card company.
- CFPB
- The Consumer Financial Protection Bureau: the federal agency that protects consumers of financial products.
This is general information, not legal advice: QARAVAN has no lawyers. QARAVAN does not help anyone enter the US and cannot arrange visas, invitations, sponsorship or evacuation. For your own case, talk to a licensed immigration attorney or a representative accredited by the U.S. Department of Justice.
All pages: Money, food, benefits and taxes
Sources, checked November 2026
- lespeoples.org/saving-credit-builder-loan
- access.nyc.gov/programs/nyc-financial-empowerment-centers
- consumerfinance.gov/consumer-tools/credit-reports-and-scores
- annualcreditreport.com
- equifax.com/personal/credit-report-services/credit-dispute
- experian.com/disputes/main.html
- dispute.transunion.com
- consumerfinance.gov/complaint