Good Credit in the U.S.: Lower Loans, Better Business Deals

Credit History Works for More Than You Think!

Hello, this is Suzuki from EcoDrive.

In the last posts I explained what credit history is and how to boost your credit score.

Today I’d like to share some real-world advantages of building credit in the United States, based on my own experience.

The videos embedded in this article are narrated in Japanese, but English subtitles are available.

You can catch the previous articles here!
Learn the Basics of Credit History From First‑Hand Experience!
How to Raise Your Credit Score Fast in the U.S.

Watch the video version here.

The Challenge of Getting a Loan Right After Moving to the U.S.

I moved to the United States roughly 20 years ago as a company expatriate. At first I relied on a rental car, but I soon realized I needed a vehicle of my own and started shopping around.

As discussed in the earlier articles, I ran straight into the hard truth that “no credit means no loan.” When I tried to buy a car, my lack of credit history became a roadblock, and I couldn’t secure financing.

I Eventually Found a Dealer Willing to Lend—but…

By sheer luck, I came across a dealer that would approve a loan even with zero credit history. While I was grateful, the trade-off was an eye-watering interest rate of 23.99 %.

That kind of rate is unthinkable in Japan, but I quickly learned it’s the legal maximum for auto loans in the U.S.

Asking the Bank—Still Few Options

Naturally, I explored other avenues, but at the bank I was told, “Get a credit card first, then wait about two years before you’ll have a usable credit score.”

In the end, with no real alternatives, I took the high-interest loan and bought the car. That experience drove home just how crucial it is to build credit when living in the United States.

It also taught me that raising a credit score takes time and steady, patient effort.

Raise Your Credit Score and Refinance into Better Loan Terms

After accepting that sky-high auto-loan rate, I began paying it down bit by bit and started using credit cards.

As my credit score slowly improved, I discovered I could refinance the loan at a much lower interest rate—something that’s relatively easy to do in the United States.

The initial rate was shocking, but building credit opened up better options over time, and that flexibility is one thing I truly appreciate about the U.S. system.

Personal Credit Comes in Handy When You Launch Your Own Business, Too

I decided to leave the corporate world and strike out on my own.

Starting a business, of course, means handling a long checklist of preparations.

One big lesson: when you want to lease an office, the landlord looks hard at creditworthiness.

Because brand-new corporations are viewed as a high default risk, renting space under the company name alone was nearly impossible.

Fortunately, my strong personal credit score allowed me to secure an office for the business.

A Bond Company Can Front the $50,000 Deposit

The business I launched began as a used-car dealership, so I had to obtain a dealer license.

My personal credit score played a key role once again. To secure the license you first need to post a $50,000 bond—an unpleasant hit to cash flow when you’re just starting out.

With a solid credit score, however, a bonding company will front that amount for you, and your out-of-pocket cost drops to only $100–300 per year.

This experience underscored how critical cash-flow management is when launching a startup. Having that $50,000 temporarily covered helped keep the business on stable footing.

Even for Business Loans, Your Personal Credit Score Matters

As I expanded the company, I needed business loans—and that experience drove home once again how critical personal credit really is.

Without a solid personal credit score, securing financing for the business becomes extremely difficult, so anyone thinking of starting a company in the U.S. should build credit strategically.

Maintaining a healthy credit score doesn’t just help you personally; it can directly influence your company’s ability to grow, making it an essential asset for every entrepreneur.

Focus on Building Credit as Soon as You Arrive in the U.S.

That’s it for today’s post, but to sum up, the very first thing you should do after moving to America is start building credit.

Specifically:
・Open a credit card
・Begin making payments as soon as you have the card
・Aim for a score of roughly 740
・Check your credit report regularly

If you follow these steps and work to maintain a solid credit score, day-to-day life in the U.S. becomes much easier.