The US Credit System Explained for Newcomers

Understanding the US Credit System

If you've recently moved to the United States, the credit system may seem confusing. In many countries, credit works very differently — or doesn't exist at all. This guide will help you understand everything from the ground up.

The Three Credit Bureaus

In the US, three major companies track your credit history:

Equifax — Founded 1899, Atlanta, GA

Experian — Founded 1996 (US operations), Costa Mesa, CA

TransUnion — Founded 1968, Chicago, IL

Each bureau collects data independently, so your reports may differ between them. This is why Credit Booster scans all three bureaus for just $1.

How Credit Scores Work

Your credit score is a number between 300-850 that represents your creditworthiness:

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Key Differences from Other Countries

Coming from Russia/Ukraine/Eastern Europe:

In the US, your credit follows YOU, not the bank

No credit history = no credit score (you start from zero)

Utilities and rent usually don't build credit automatically (but they can with the right tools)

Your credit history from home does NOT transfer

Coming from Western Europe:

US credit is more individual-based

The scoring system is different from European systems

Positive history (like on-time payments) matters more than in some European countries

Your Rights as an Immigrant

Regardless of your immigration status:

You have the right to obtain your credit reports

You can dispute inaccurate information under the FCRA

Credit bureaus cannot discriminate based on national origin

You are protected by the Fair Debt Collection Practices Act

Get Started: Whether you're building credit from scratch or repairing existing issues, Credit Booster's $1 scan gives you a complete picture of where you stand.

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