Happy AAPI Month: Helping Immigrants Build Credit in the U.S.

This AAPI Month, we're celebrating the courage, ambition, and resilience of immigrants and AAPI communities who are building new lives, new opportunities, and new financial futures in the U.S.

Moving to the U.S. comes with a long list of firsts: your first apartment, first phone plan, first bank account, first car, and maybe one day, your first home.

But there's one thing that can impact many of those milestones: credit.

In the U.S., credit plays a big role in everyday life. Landlords, lenders, phone companies, insurance providers, and even some employers may look at your credit history to understand how you manage financial responsibility. The challenge? Many immigrants arrive with no U.S. credit history, even if they had strong credit or financial experience in their home country.

That does not mean you are starting from zero in life. It simply means the U.S. credit system has not learned who you are yet.

The good news: you can start building credit in the U.S. with the right steps.

Immigrants can begin building credit by getting a Social Security number or ITIN, opening a U.S. bank account, applying for a credit card, becoming an authorized user on someone else's card, or using a credit-building product designed for people who are new to credit.

Helping immigrants establish and build credit has been one of our earliest goals at TomoCredit.

Credit is a way for lenders and financial institutions to understand how you borrow and repay money.

Your credit report is like a financial track record. It shows your credit accounts, payment history, balances, and other activity. Your credit score is a number based on that report. In the U.S., credit scores typically range from 300 to 850, and higher scores can make it easier to qualify for loans, apartments, credit cards, and better rates.

There are three major credit bureaus in the U.S.: Experian, Equifax, and TransUnion. These companies collect information about your credit activity and use it to create credit reports.

Even if you had excellent credit in another country, that history usually does not transfer to the U.S. Most newcomers need to build a U.S. credit profile from scratch. Typically, you need at least a few months of reported payment history before a credit score can be generated.

Credit scores are based on a few key habits. The most important one is simple: pay on time.

Here are the main factors that can impact your score:

• Payment history: This is the biggest factor. Paying bills on time can help your credit grow, while missed or late payments can hurt your score.
• Credit usage: This looks at how much of your available credit you are using. Keeping your balance low compared with your credit limit can help your score.
• Length of credit history: The longer you have active credit accounts, the more information lenders have to understand your habits.
• Credit mix: Having different types of credit, such as credit cards or loans, can help show that you can manage different financial responsibilities.
• New credit activity: Applying for new credit can temporarily affect your score, especially if you apply for many accounts in a short time.

Good credit can open doors. It can help you rent an apartment, qualify for a car loan, get better financial products, and work toward long-term goals like buying a home.

For immigrants and AAPI communities, building credit is not just about a number. It is about creating access, stability, and opportunity in a new country.

Happy AAPI Month from TomoCredit. We believe your potential should not be limited by a lack of U.S. credit history. Everyone deserves a fair chance to build their financial future.