In Progress

2) Credit & Financial Identity

Credit score mechanics

In the U.S., your Credit Score is your financial reputation. It is a three-digit number that tells banks, landlords, and even some employers how much they can trust you. For an international student, you start with a blank slate (no score), which can make it hard to rent an apartment or get a phone plan.

Most lenders use the FICO Score (ranging from 300 to 850). Your score is calculated using five ingredients.

Payment History (35%): This is the biggest factor. Did you pay on time? Even one late payment can stay on your report for 7 years.
Amounts Owed / Utilization (30%): How much of your limit are you using?
Length of History (15%): How long have your accounts been open?
Credit Mix (10%): Do you have different types of credit (cards, auto loans, etc.)?
New Credit (10%): Have you applied for many cards recently?

Resources

Record your progress

Mark this subsection complete to track your progress.