How to Build Credit in America

Whether you have just reached adulthood or are moving to America from another country, you need to establish credit in order to have access to a number of financial products, such as bank accounts, debit cards and loans for homes, cars and school. Establishing credit in America may take time, but it is important that you do so responsibly so that you can get lines of credit in the future.

Instructions

1

Get a credit card or prepaid card and use it responsibly. Carefully read the credit card information and ensure that the company reports to the national credit reporting bureaus and that the card is from a legitimate company. Use the card frequently, but pay the full balance, or at least a little more than the minimum due, each month.

2

Get a co-signer or talk with lending institutions about getting a loan in your name. Ask a friend or family member with good credit to co-sign a small automobile, student or personal loan for you. If you are from another country where you had good credit, talk to the lending institution about granting you a loan if you provide information about your good credit standing in your home country.

3

Pay your bills on time. Late payments can quickly reduce your credit score. According to Bank of America, late payments account for 35 percent of your credit score. Enroll in your credit card or loan's auto-pay option if you have trouble making payments on time.

4

Monitor your credit report and report any fraudulent activity. Print a copy of the sample dispute letter from the Federal Trade Commission's website and write your own using it as a guide. Include documentation of the fraudulent charge and send a letter to the company and credit reporting agencies. Follow up with a phone call to learn about the dispute procedure.