Before you start

Passport, with visa and I-94 if applicable
A California 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, California 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
Try a state-employee credit union
Sacramento has an unusually deep credit union sector, several of them among the largest in California and grown out of state employment. Their membership routes have broadened well beyond state workers — employer, county of residence, association. They are frequently the cheapest car finance available to someone with no credit file and the most willing to open an account on a passport.
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
Set up SMUD and understand the time-of-use rate
SMUD is the community-owned electricity utility and there is no supplier to choose. What there is to choose is the rate plan: SMUD's default residential rates are time-of-use, with a much higher price in the late-afternoon and early-evening peak. In a climate with four months of air conditioning, pre-cooling the flat before peak and running the dishwasher after it is worth a meaningful share of the summer bill.
OnlineWho: You
7
Budget the vehicle registration properly
California's registration includes a value-based vehicle licence fee, so a recent car is markedly more expensive to register here than in most states — and it recurs annually. A newcomer with no credit file financing a car will also be quoted a punitive rate. Model the loan, the insurance and the registration together rather than separately.
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 California address
Employer offer letter, accepted by some institutions as supporting evidence

Things most newcomers don’t know

There is no electricity supplier to choose here, and that is the good outcome.

SMUD is a not-for-profit utility owned by the community it serves and governed by an elected board. There is no shopping, no teaser rate and no contract to roll over — which in deregulated Texas is where households lose hundreds of dollars a year. The lever that does exist is the time-of-use rate structure, and using it is the single most effective thing you can do about a Sacramento summer bill.

Source: Sacramento Municipal Utility District

The credit unions here are unusually strong because the state is the employer.

Sacramento's largest credit unions grew out of California state employment and are among the biggest in the state. Their underwriting is more flexible for thin-file borrowers than a national bank's branch script allows, and their car loan rates are frequently the best available to a newcomer. Membership routes are much broader than 'state employee' — check before assuming you are ineligible.

Source: National Credit Union Administration

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.
Ignoring SMUD's time-of-use peak and running everything at 6 p.m. in August.
Financing a car in month one with no credit file at a punitive rate.
Budgeting for registration at Texas or Indiana levels and being caught by California's value-based fee.
Delaying a secured card until credit is actually needed.

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