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3 months ago

Why having a credit card is important in the USA ?

The advantages of having a credit card are dependent on what your credit scores are in the USA. Credit scores can be anywhere from 300 to 850. As an F1 visa student, the score might range from 680 to 710. A credit score can be considered very good if it is above 740. If your credit score is good :
-You will have to pay less interest for loans in the future.
-You will have to pay less security deposit while you are renting out an apartment.
-You will be given multiple cashback offers if you have a good credit score.

A score of 710 and above denotes that you pay your dues on time, you pay your interest on time, and you pay your credit card bill on time. You do not overspend. Spend only 30-40% of the credit limit. To have a credit card, you will need a social security number(SSN). To get an SSN, you will require an authorized work visa. All F1 visa students can work up to 20 hours per week on-campus jobs. To work on campus as well, you will have to have an SSN. SSN is a unique number assigned to each individual which puts you in the USA tax system. As soon as you get a credit card, you will have to build a credit score over a period of at least 6 months. Not all credit cards require an SSN, multiple banks give credit cards to international students based on the i20 and other documents. You have to submit your SSN after you receive it and then these banks can report your credit history. Various credit cards have various benefits like 1% cashback on everything and many more. Companies like NOVA credit lets you use your Indian credit history to apply for a USA credit card. You will have to apply from the USA for a NOVA credit card because it requires a USA address. This will not only help you build a credit history from day 1 itself but also will help you to get various rewards. You can also get gift cards after referring to other people or using other people’s referral codes. If you plan to apply for a USA credit card from India itself, neo banks like zolve credit cards are a good way to go. Many Neo bank credit cards can be availed by using your i20.

How are forex cards different?
Forex cards are prepaid cards that can be used for cross-country currency exchange. You will have to load a certain amount of money into your forex card. The disadvantage of forex cards is that it does not build your credit. The disadvantage of an international debit card is that every time you use it in a foreign country, you will have to pay a conversion charge every time you swipe your card. In the case of a forex card, the conversion fee is charged only once.

A good way to select a credit card for an international student is to check if it has 0% international transaction fees( In case, you need any amount from your home country, you will not be charged extra fees). If you plan to get a credit card, don't forget to set an alarm to pay your dues on time. This way you don't get charged an extra interest. Other factors to consider while selecting a credit card are the APR, rewards, cashback, annual fees, and minimum repayment per amount.

Hope this article helps you to understand a little bit more about credit cards and good luck with your study abroad journey!!

#creditcards #masters #ms #bachelors #phd #diploma #admissions #applicationprocess #universityselection #studyabroad #tipsandtricks #USA #creditcards

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Yeswanth Kambakkam

3 months ago

Can you send me the link to check credit score

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Ch Bhargava

3 months ago

wow

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TEst Test

3 months ago

ok

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Ankit

3 months ago

How is our Credit Score decided in the beginning when we have no history in USA?

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Arie Nitin

3 months ago

Thank you for the insights on credit cards. I would really appreciate if you can provide me some credit card names which has 0% international transaction fees? See more

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