Building Credit as an International Student by getting a Car Loan

One thing you need to be successful in the US is a good credit score. Credit scores are used by lenders, banks, and financial institutions to understand how likely you are to pay back money that is lent to you.Read below to learn more about building credit as an international student. Here are several advantages of having good credit:

  • Lenders are more likely to let you borrow auto loans work
  • You will get lower interest rates, meaning you pay back less.
  • You will have more competitive repayment terms.
  • You will have a higher credit limit for revolving credit (such as credit cards, loans etc.).

Credit scores are based on an individual’s credit history. There are various historical factors that go into calculating your credit score, and we’ll get into those later.

When you have a good credit score, this means that you are a low “credit risk.” You probably won’t have issues repaying your loans, you’re likely to make all your repayments on time, you won’t fail to pay back the loan (default) and lenders will get their money back, with interest.

A good credit score improves your acceptance chance, interest rate, and repayment terms for credit cards, loans, mortgages, bank accounts, and more. You might be wondering, how do you build your credit history and improve your credit score as an international student?

The Issue International Students have with Building Credit as an International Student in the US. 

You probably have experienced the issue with being an international student and wanting to improve your credit history and score:

You need credit history in order to get a loan, but without a credit history,
how do you get a loan in the first place?


In many cases you also need a social security number to apply for financing, but as an international student you probably don’t have one. So, what can you do?

We understand this problem, and it’s the main reason we developed Lendbuzz — to provide low-cost car loans to international students and professionals. Lendbuzz does not require credit history or a social security number to lend money to internationals, and we are able to provide car loans and financing options without a formal credit score.

The good news is that the amount of your auto loan, repayment plan, and several other factors all go towards your credit history and credit score. If you are able to repay the car loan according to the terms we’ve set, both your credit history and credit score will improve.

Think of Lendbuzz as the first substantial step towards building your credit history in the US. Take out an auto loan with us, repay it, and you will enhance your chances of getting better terms on loans, credit cards, mortgages, and other financial products in the future.

Your Credit History and What Influences It

building credit as an international student

Here are several factors that go into building your credit history and improving your credit score:

Your Loan Repayment History

This represents how often you make payments on your loans, and if you ever pay late or miss payments altogether. As an international student it is vital to have a proper budget for your education, living, and other costs.

An important part of financing your car is making sure you have enough money each month to repay your minimum loan payment. If you can do this over the lifetime of the loan, your credit score will increase. If payments are late or missed, this will have a negative impact on your credit report and score.

The Type of Credit Accounts You Have

There are various different types of credit accounts. These include fixed-term loans like auto financing, consumer credit like hire-purchase agreements, interest-free credit, and consumer or revolving credit like credit cards. A lender wants to see a good mix of credit accounts as they show you can handle and repay different types of debt.

A Lendbuzz auto loan helps with this area of your report as well! This type of fixed-term financing along with consumer credit and other types of borrowing show that you are a good credit risk.

The Length of Your Credit History

The longer your credit history, the better. Lenders want to see your debt and repayment behavior over time. Being able to look back over three, five, or ten years of loans and repayments is very useful. They say the best time to plant a tree is fifty years ago, and the second best time is now. You can apply for a Lendbuzz auto loan and start building your credit history today!

Recent Credit Inquiries

The last area that affects your credit report is how many credit inquiries there have been to decide whether to lend to you. The fewer inquiries, the better, as it shows you’re not applying for financing everywhere. The good news is that we don’t check your credit report, so you won’t be affected by an inquiries from Lendbuzz.

Taking Out an Auto Loan Versus Paying in Cash

 how internationals build credit

You might ask why you would take an auto loan in the first place when you could just pay with cash. It really depends on your medium- and long-term plans. If you want to stay in the US for an extended period of time, you should start building your credit history now.

Lenders in the US use your credit score and report for everything, and you’ll have more access to financing options if you have a good credit score. Although paying in cash may be easier in the short-term, it won’t contribute to your credit report or score at all. If you take out an auto loan with Lendbuzz, you get a low interest rate and you can easily set up monthly payments to make repayment effortless.

How Lendbuzz Decides to Lend to You

You might be wondering how Lendbuzz decides to lend to you, when we don’t require a credit report, or need a social security number. We take several factors into account to understand your credit risk. Other lenders normally ignore these, but we believe these factors give us good insight into how likely you are to repay your car loan. These are the factors we take into account: 

  • Being an international student visa holder.
  • Not having credit history in the U.S.
  • Not having a social security number.
  • Not being a permanent resident.
  • Making loan repayments affordable on a student budget.
  • Your educational background
  • Your potential earnings.

This information helps us decide whether to lend you money, decide on fair interest rates, and offer lower repayment terms.

We have our own comprehensive car loan rates and repayments calculator, so you can see how much you’d need to repay and the interest rates we charge.


Applying for a loan with us is quick and easy, and we’re here to help you. Why not apply today? 

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