❓ Understanding U.S. Credit Scores: A Guide for Korean Immigrants

Your credit score is one of the most important numbers in America. It affects whether you can rent an apartment, get a car loan, buy a house, or even get a job.

What Is a Credit Score?

A FICO credit score ranges from 300 to 850. The higher, the better.

• 750+ — Excellent
• 700–749 — Good
• 650–699 — Fair
• Below 600 — Poor (hard to get approved for anything)

How to Build Credit from Zero

• Secured Credit Card: You deposit 00–500 as collateral and get a card with that limit. Use it for small purchases and pay in full every month.
• Become an Authorized User: Ask a trusted friend or family member to add you to their card.
• Credit Builder Loan: Offered by credit unions. The money is held in savings while you make monthly payments, building your history.
• Open a U.S. Bank Account: Not directly tied to credit score, but required for most credit applications.

5 Factors That Affect Your Score

• Payment history (35%): Always pay on time — even one late payment hurts.
• Credit utilization (30%): Keep usage under 30% of your limit.
• Length of credit history (15%): Don't close old accounts.
• Credit mix (10%): Having both cards and loans helps.
• New inquiries (10%): Don't apply for too many cards at once.

Check Your Credit for Free

Visit AnnualCreditReport.com to get free reports from all 3 bureaus (Equifax, Experian, TransUnion) once per year. Use apps like Credit Karma for ongoing monitoring.