Credit in the US. It starts at zero.

In Germany, SCHUFA has known your payment history for decades. In the US, nobody knows you — to the credit bureaus there, you are a blank slate. That is not a black mark, but it is a starting point. Here is how a US credit history comes about and in which order it grows.

In brief

Your SCHUFA data does not count in the US; a US credit history starts at zero. A first FICO Score can be generated once an account has existed for at least six months and has been reported in the last six months. The score (300 to 850) follows five factors: payment history 35 per cent, utilisation 30, length of history 15, new accounts 10 and credit mix 10. Those who pay on time, use only a small part of their limits and plan their applications build the history fastest.

Why you start at zero in the US

Credit bureaus work nationally. SCHUFA in Germany, KSV1870 in Austria or CRIF in Switzerland do not report to the US credit bureaus Equifax, Experian and TransUnion. A long, clean payment history in Europe therefore does not, as a rule, count for your first US application — but neither does an old entry. In practice, the US credit bureaus keep personal files by Social Security number or ITIN, together with name, address and date of birth. Without one of these numbers, there is rarely a file to which payments can be linked.

What the FICO Score is made of

Weighting according to FICO for the population as a whole; it differs for people with short credit histories.

  • Factor: Payment history · Weight: 35% · What counts: on-time payments, every late payment, collections
  • Factor: Utilisation · Weight: 30% · What counts: how much of your limits you use — usually reported on the statement date
  • Factor: Length of history · Weight: 15% · What counts: how long your accounts have existed
  • Factor: New accounts · Weight: 10% · What counts: how many accounts you have recently opened or applied for
  • Factor: Credit mix · Weight: 10% · What counts: cards, instalment loans, mortgages

The order in which your history is built

  • 1. Number and address: An ITIN or SSN, a US address, a phone number — identical in every application.
  • 2. The first account: A personal card with a small limit, often against a deposit (a secured card). Each issuer decides for itself whether a business credit card appears in your personal file.
  • 3. Six months of patience: Only after six months of reporting is there a first FICO Score. During this time only one thing counts: every bill paid on time and in full.
  • 4. Keep utilisation low: Use only a small part of your limits and pay before the statement date — what is reported is usually the balance on that day.
  • 5. Expand carefully: As your history grows, further accounts follow — planned and with gaps between applications, because every enquiry is recorded and every new account lowers the average age of your accounts.

What does not help

  • Wrong turn — Many applications at once: Every enquiry is recorded, every new account lowers the average age of your accounts. A series of refusals is the slowest route.
  • Wrong turn — Bought history: Offers to be added, for a fee, as an authorised user on other people’s cards are risky: issuers can close such accounts, and the benefit is uncertain.
  • Wrong turn — “Credit repair” paid up front: Nobody can have accurate entries removed. The US Federal Trade Commission (FTC) expressly warns against services that promise this.

Checking your US file yourself

Each of the three credit bureaus shows you your file free of charge via AnnualCreditReport.com, their joint service — by law once a year, and now permanently every week. The prerequisite is that a file exists: with an SSN or ITIN and a US address. If you find an error — someone else’s account, an incorrect late payment, an old address — have it corrected directly with the credit bureau. This costs nothing and requires no service provider.

Personal and business history

Alongside your personal file, your company can build its own history with the business credit bureaus — with its own identifier and its own score. With a young company, however, card issuers almost always look first at the person behind it: a personal guarantee is the rule, and so your personal history counts. Both histories grow best together: on-time payments by the company, a clean personal file, no hasty applications.

How FIAON Global helps build your US history

A US credit history does not come from a trick but from a plan: the right numbers, identical details, the right first application, then patience and sequence. That is exactly FIAON Global’s card ladder. We make sure that your ITIN, address and phone number are right from the start, plan the sequence of issuers, prepare every application in full and each month review with you where you stand. The issuer decides on every limit. Our task is to ensure that it sees your applications complete, consistent and at the right time.

The card ladder in one package

Company, tax numbers, first card and the planned sequence of further issuers — Global Banking.

What you need to know

  • Nobody can promise a particular score or limit — the score follows the data that issuers report.
  • US business credit cards generally require a personal guarantee from the owner. The institution alone decides on the account, the card and the limit.
  • The ITIN serves tax purposes; whoever holds one takes on the obligations that come with it.

Frequently asked questions

Does my SCHUFA record count in the US?

No. US credit bureaus do not use SCHUFA data; your US credit history starts at zero — without any benefit from good entries, but also without any disadvantage from old ones.

How do I get a US credit score without an SSN?

Through the ITIN: in practice, credit bureaus keep personal files by SSN or ITIN. A first FICO Score can be generated once an account has existed for at least six months and has been reported in the last six months.

How long does it take to build a US credit history?

A first score comes after about six months. A robust history that supports larger limits grows over years — with on-time payments and few, planned applications.

What credit utilisation should I aim for?

As low as possible. Utilisation accounts for around 30 per cent of the FICO Score; what is reported is usually the balance on the statement date.

Does a business credit card help my personal credit score?

Each issuer decides for itself: some report business credit cards in the personal file, some only when payments are late, some not at all.