Study Abroad: Tips & Updates

Why is Credit History So Important in the U.S. & How to Start Building It

Yocket Editorial Team
Why is Credit History So Important in the U.S. & How to Start Building It Image

Credit cards are of the utmost importance for international students living and studying abroad. Can you believe that these 3x2 inches of plastic cards hold the power to provide you with an extraordinary credit history, let alone the power to prove your credit-worthiness? There are also ways wherein credit cards can help you increase your purchasing power and stabilise your finances. The advantages of using a credit card are quite too many, only that you need to have a keen eye!

So, keep reading as this blog will tell you all about the importance of having a credit card, and how credit cards can play a predominant role in your journey abroad!

Everything about Credit Cards

Applying for a credit card as soon as you start your journey abroad, can be helpful to you in a lot of ways including:

  • First mover advantage in terms of building a strong credit history
  • Getting hold of US credit card rewards and other student rewards at an early stage
  • Ability to prove credit-worthiness from an earlier stage

One of the most predominant parts of applying for a credit card as soon as you start with your studies in the US, is building a credit history through the easiest possible way. For instance, an American Express credit card in partnership with Nova Credit will help you build your credit and transaction history at an early stage, thereby increasing your credit period or tenure in the USA, even without asking for an SSN number.

You can apply for a credit card through any bank of your preference. There are certain things that are essential to be submitted when applying for a credit card in the US, and they are:

  • US Credit History
  • Social Security Number
  • Amount of total available assets
  • Gross income
  • US mailing address

Most Indian students DO NOT have these and get rejected for every application of a credit card.

Nova Credit helps you apply for a premium American Express credit card, without Social Security Number!

How to Build a Credit History in the US?

International students can build credit history with Nova credit, an innovative fintech company, which takes your credit reports from foreign credit bureaus, further sending the credit data to American credit providers like American Express, Verizon and Westlake. Furthermore, Nova Credit offers American underwriters a FICO-Equivalent score to analyse the creditworthiness of an immigrant in the US.

Nova partners with numerous underwriters like American Express, Verizon, Westlake, HSBC, etc, thereby helping newcomers get access to existing credit products that they were not able to get hold of before, due to their non-existent or invisible US credit. One of the most popular credit cards Nova Credit offers is the American Express Blue Cash Everyday.

Advantages of using a credit card are several, provided that you use the card as a responsible immigrant residing in the US. Not only does a credit card increase your purchasing power, but also helps you build a trusting relationship with American underwriters. Moreover, as an international student in the US, you can even get hold of humongous cashbacks, and student rewards, through your credit card. Therefore, it is safe to say that a credit card will help you in your current and future endeavours in the US.

Frequently Asked Questions about Importance of Credit Card

Ques. What are the benefits of using a credit card?

Ans. Some key benefits of using a credit card as an immigrant are:

  • Building a strong credit history
  • Access to rewards and cashbacks
  • Increased purchasing power

Ques. Can I get an unsecured credit card when studying in the US as an international student?

Ans. Yes, you can very well get hold of an unsecured credit card through Nova Credit, which is a consumer-permissioned credit bureau in the US. Nova Credit enables access to unsecured cards by enabling US underwriters to leverage international credit history. This further proves that a student is a creditworthy customer who doesn't have to start from scratch with a secured card! 

Ques. How does an American Express credit card help build a strong credit history?

Ans. American Express student credit card accepts your international credit history during the application process, in partnership with Nova Credit. Through Nova Credit, you can get hold of an AmEx credit card to start building your credit history in the US from day 1.

Ques. What are the requirements to apply for a credit card in the US?

Ans. When applying through Nova Credit, immigrants just need to submit their US bank account details and a US address.

Ques. Which is one popular credit card for international students in the US?

Ans. One of the most popular credit cards for international students is American Express Blue Cash Everyday. You can also visit the Nova Credit website, explore different credit cards and apply for it.

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