When I first came to the U.S., I was shocked by how important credit history was for living here.

Even after more than 30 years in the U.S., I still vividly remember the embarrassment I felt when asked about my credit score.

When I first looked for a phone and tried to rent an apartment, the first question was always about my credit score.

"I lived in Korea with just my credit, and I never missed a payment!"

"That doesn't matter here. Without credit in the U.S., you're just considered 'someone without credit.'"

No matter how much money you have in Korea, if you have no credit history in the U.S., renting is difficult, you have to use a prepaid phone, and leasing a car is out of the question.

So, how do you start building this 'credit' from scratch?

We are familiar with it, yet not fully understanding it: the Secured Credit Card, also known as a secured card.

What is a secured card?

Simply put, it is a 'collateral' credit card. You deposit a certain amount as a security deposit, and it allows you to use a credit card up to that limit.

For example, if you deposit $500 with the bank, they will issue a secured card with a $500 limit.

This deposit is usually around $300, but the maximum can go up to $2,500, depending on the bank, so be sure to check.

By using the card within the deposit limit and paying it back on time, you build a credit history that shows 'this person borrows and repays money well.'

But can't I just use a debit card?

Debit cards leave no trace on your credit record. What affects your credit score is 'the record of borrowing and repaying.'

Secured cards make this possible. Although you start with a deposit, if you pay diligently for about 12 months, you may be able to convert to a regular credit card and apply for other cards. In short, it is an entry-level card into the world of credit.

Secured cards can now be easily applied for online

Nowadays, you don't even have to go to the bank. Here are a few card companies I recommend. (Not an ad, just my personal experience)

  1. Capital One Platinum Secured Card – Quick approval, and the minimum deposit starts at $49, making it less burdensome.

  2. Discover it Secured Card – It even offers cashback rewards.

  3. OpenSky Secured Visa – It can be issued without a credit score, making it great for those starting from a true 'zero base.'

Applications are all done online. You just need to enter your name, social security number, income, and bank account information. The deposit can be transferred directly from your account, and the card usually arrives at your home within a week.

Why is it hard to build credit without a secured card?

Simply put, someone needs to observe me 'borrowing money and repaying it' to establish credit.

But banks or card companies are not going to lend money to someone they have never seen before without a reason. "Who are you?" "How can we trust that you'll repay?" This is the reality.

Secured cards fill this gap. Since you have deposited money, there is no risk for the bank, and I can build credit. It's like getting a 'learner's permit' at a driving school, a step before entering the real world.

Even if your credit is damaged, you can start again with a secured card

Living in the U.S., there are times when your credit unexpectedly gets ruined. Job loss, divorce, medical bills, or just missed payments during a reckless time.

In such cases, a secured card can provide a stepping stone again.

Even with bad credit, secured cards are likely to be issued because the deposit mitigates the risk.

And if you pay on time for a month or two, your score can rise again within 6 months to a year.

Just like building muscle at the gym, if you consistently lift small weights, you will eventually return to your original shape. A secured card is that first dumbbell.

Now, someone who just entered the U.S. asks me.

"How do I build credit in the U.S.?"

I answer without hesitation. "Start with a secured card. That's the beginning."

In the system of the U.S., credit is indeed complex yet simple.

Ultimately, appearing as 'someone who keeps promises' is the first step to living in this country.