Before you start

Passport, with visa and I-94 if applicable
A Michigan residential address
An SSN or ITIN if you have one; a passport number if not
An opening deposit, which varies by institution

Step-by-step

1
Open a checking account in branch
Bring your passport, Michigan address and SSN or ITIN if issued. Federal Customer Identification Program rules explicitly permit a passport number and country of issuance instead of a taxpayer number for non-US persons.
In personWho: YouWeek 1
2
Mention a pending ITIN if you have no SSN
Banks may open accounts for people who have applied for but not yet received an ITIN. File IRS Form W-7 and keep the receipt.
In personWho: You
3
Consider a Michigan credit union or a community development lender
Michigan has one of the strongest credit-union sectors in the country, several with roots in the auto plants, plus certified community development lenders working specifically in Detroit neighbourhoods. Both are usually more flexible on thin credit files and price car loans better than national banks.
In personWho: You
4
Set up direct deposit
Give payroll your routing and account numbers. Direct deposit waives the monthly maintenance fee on most US checking accounts.
Via employerWho: You and your employer
5
Open a secured credit card in month one
Post a deposit, typically around $500, and get a card with a matching limit that reports to the credit bureaus. Age of history matters as much as behaviour, so the clock is the thing you are buying.
OnlineWho: YouMonth 1
6
Budget the car loan and the insurance together
Detroit is car-dependent and, for insurance purposes, one of the most expensive US cities to keep a car in. A newcomer with no credit file will be quoted a punitive finance rate on top of that. Model the loan payment and the premium as one number before deciding what to buy.
In personWho: You
7
If you are thinking of buying a house, talk to a local lender first
A large share of Detroit housing sells for less than it would cost to rebuild, which makes conventional appraisal-driven mortgages difficult on older stock. Local banks, credit unions and community development lenders run rehab and appraisal-gap products that national lenders do not. Start with them rather than a national mortgage site.
In personWho: You

Documents you’ll need

Passport, with country of issuance serving as the identifying number if you have no SSN or ITIN
Visa and I-94, where applicable
SSN card or ITIN letter, if issued
Proof of a Michigan address
Employer offer letter, accepted by some institutions as supporting evidence

Things most newcomers don’t know

Cheap Detroit houses are hard to mortgage, which is why so many sell for cash.

When a house sells for less than it would cost to rebuild, a conventional appraisal-driven mortgage struggles, and national lenders decline. Local banks, credit unions and community development lenders run rehab and appraisal-gap products designed for exactly this. If a listing price looks impossibly low, the financing — not the house — is usually the reason.

Source: community-reported

The car loan and the insurance premium are one decision here.

In most US cities the finance rate is the variable and insurance is background noise. In Detroit the premium can rival the loan payment, and both are worse without a credit file. Newcomers who shop the car and then discover the insurance quote end up with a vehicle they cannot afford to keep on the road.

Source: Michigan Department of Insurance and Financial Services

Federal rules let a bank take your passport instead of an SSN.

The Customer Identification Program rule accepts a passport number and country of issuance for non-US persons. Branch staff often do not know this. Escalate politely, or try a credit union, before concluding you must wait for the SSN.

Source: FFIEC BSA/AML Examination Manual — Customer Identification Program

Carrying a balance builds interest, not credit.

Scores respond to on-time payment and low utilisation, not to interest paid. Paying in full each month builds history identically and saves a rate above 20% APR.

Source: Consumer Financial Protection Bureau — credit cards

Common mistakes to avoid

Waiting for an SSN before trying to open an account, when a passport is often enough.
Financing a car in month one with no credit file and then discovering the insurance quote.
Approaching a national mortgage lender about an older Detroit house and concluding it cannot be financed at all.
Delaying a secured card until credit is actually needed.
Paying an avoidable monthly maintenance fee by never setting up direct deposit.

Some of this may be out of date. Spotted something inaccurate? Help us keep it right for the next newcomer.