# Building credit from zero Source: https://www.qaravan.org/resources/money/building-credit/ 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. ## What builds credit and what does not 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) | | | | | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ## How to start, step by step 1. 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. 2. 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. 3. 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. 4. 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. 5. 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. 6. 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. ## How to get a free report 1. 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. 2. 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. 3. 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](https://AnnualCreditReport.com). ## If your report has an error 1. 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. 2. 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. 3. If it is identity theft If the error may come from identity theft, go to [IdentityTheft.gov](https://IdentityTheft.gov) to report it and get a recovery plan. 4. If you are not heard File a complaint about a credit report problem with the CFPB. ## Where to turn - AnnualCreditReport.com Any status Free 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. [annualcreditreport.com](https://www.annualcreditreport.com/) - Equifax Any status Free One of the three nationwide credit reporting companies. You can dispute an error online or by mail. [equifax.com](https://www.equifax.com/personal/credit-report-services/credit-dispute/) - Experian Any status Free One of the three nationwide credit reporting companies. You can dispute an error online or by mail. [experian.com](https://www.experian.com/disputes/main.html) - TransUnion Any status Free One of the three nationwide credit reporting companies. You can dispute an error online: [dispute.transunion.com](https://dispute.transunion.com). [dispute.transunion.com](https://dispute.transunion.com/) - Lower East Side People's Federal Credit Union: Saving & Credit Builder Loan Any status NYC residents Low 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. [lespeoples.org](https://www.lespeoples.org/saving-credit-builder-loan) 37 Avenue B, New York, NY 10009 - NYC Financial Empowerment Centers Any status NYC residents Free 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](https://a866-dcwpwb.nyc.gov/talkmoney/book-appointment). [access.nyc.gov](https://access.nyc.gov/programs/nyc-financial-empowerment-centers/) - Consumer Financial Protection Bureau Any status Free 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](https://consumerfinance.gov/complaint). [consumerfinance.gov](https://www.consumerfinance.gov/consumer-tools/credit-reports-and-scores/) ## Glossary: definitions of special terms and abbreviations - ****: - ****: - ****: - ****: - ****: - ****: - ****: 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](https://www.qaravan.org/resources/money/) **Sources, checked November 2026** - [lespeoples.org/saving-credit-builder-loan](https://www.lespeoples.org/saving-credit-builder-loan) - [access.nyc.gov/programs/nyc-financial-empowerment-centers](https://access.nyc.gov/programs/nyc-financial-empowerment-centers/) - [consumerfinance.gov/consumer-tools/credit-reports-and-scores](https://www.consumerfinance.gov/consumer-tools/credit-reports-and-scores/) - [annualcreditreport.com](https://www.annualcreditreport.com/) - [equifax.com/personal/credit-report-services/credit-dispute](https://www.equifax.com/personal/credit-report-services/credit-dispute/) - [experian.com/disputes/main.html](https://www.experian.com/disputes/main.html) - [dispute.transunion.com](https://dispute.transunion.com/) - [consumerfinance.gov/complaint](https://www.consumerfinance.gov/complaint/)