- What is a FICO score and why it matters for funding
- 6-month credit building timeline for first credit card approval
- Business credit vs. personal credit: both matter
- Credit utilization, payment history, and age of accounts
What Is a FICO Score?
Your FICO (Fair Isaac and Company) score ranges from 300-850. It determines loan approvals, interest rates, and credit limits. Banks and investors check it. Start at 0 – you have no US credit history as an EU citizen.
How to Build It: The 12-Month Plan
Months 1-3: Secured Credit Card
Get a secured credit card (USD 500-2,000 deposit). Use it for small purchases (gas, groceries). Pay 100% each month. This signals payment reliability.
Months 4-6: Add a Second Card
After 3 months of perfect payments, apply for an unsecured card. Most will approve you. Use both cards – 30-50% utilization each.
Months 7-12: Build Business Credit
Register with Dun & Bradstreet. Get a DUNS number. Apply for vendor accounts and trade credit. Pay on time always.
Month 12+: Apply for Credit Lines
With 12+ months of history and 700+ FICO, you qualify for business lines of credit (USD 5,000-25,000) and small SBA loans.
Critical Rules
Pay on time, always. One late payment destroys months of progress. Set automatic payments.
Keep utilization under 30%. Use your 5,000 USD limit for only 1,500 USD monthly.
Never apply for multiple cards at once. Each application temporarily lowers your score. Space them 3-6 months apart.
Monitor your credit. Use annualcreditreport.com (free yearly report) and Credit Karma (daily monitoring).
Business Credit vs. Personal Credit
Build both. Personal credit (your FICO) helps you personally. Business credit (DUNS rating) helps your LLC. Lenders check both before approving business loans.
Credit is a mathematical advantage in the US. Build it intentionally, systematically, and continuously. Within 12 months, you'll access capital that would take 5+ years in Europe.