With Deferred Action for Childhood Arrivals (DACA) you can apply for a social security number and start building credit. A good credit score informs financial lenders of your trustworthiness so you can apply for student loans, a car note, and a home mortgage! However, with your new social security number comes a great deal of responsibility because while having no credit isn’t ideal, having bad credit is even worse. As a result, you must build credit smartly so you can manage it and have financial stability for the future.

Here are a few ways to start building credit with your new DACA status:

Land a job
Along with your approved DACA petition, you received a work authorization card. This allows you to land a good job with benefits. Take your time searching for the right job that matches your qualifications and fits your financial needs, because the longer you stay with the job, the better it looks on your credit score.

Open a bank account
After you nab that great job, it’s time to open a bank account. The best route is to open both a checking and savings account so you have a place to withdraw funds daily and a long-term savings solution. While bank account information isn’t stored on credit reports, financial lenders may request this information when deciding whether to approve your loan.

Pay bills on time
Some credit monitors may include your bill payment history in their reports. So make sure you pay your bills before the due date and you’ll be in good shape. If you need help staying on track, create a monthly budget. First list how much your rent, utilities and food costs. Then give yourself an allowance for discretionary spending, like for clothes and entertainment.

Apply for a secured credit card
Opening a credit card is a great way to build credit, if you pay your bill on time. Instead of applying for a regular credit card, opt for a secured account. Your credit limit will equal the amount you have in your checking account balance. This way you won’t be tempted to spend way more than you have.

Check your credit score
As you make steps to build your credit history, you’ll want to monitor your score. Under federal law, you’re allowed to check your credit score annually for free. Head to AnnualCreditReport.com, to review your score and history. Pay close attention to the items on the report, they should accurately reflect your actions. If you see something suspicious or an error, it’s possible there’s been fraudulent activity. You can report credit report inaccuracies to the Federal Trade Commision.

For information on applying for DACA, contact us through email or by phone at 855-960-5468.