How can Indians establish a U.S. credit score?
Posted on August 18, 2022
Highlights of U.S. credit score
- An individual’s payment history that is regarding debts and bill payments.
- Credit score are not portable internationally that creates limitations to access the financial products.
- Students can build their credit profile since their in-school years.
- If one has a good credit history in a different country, then can try working with a partner like Nova Credit, and enables Indians to qualify for Credit products in the U.S. using their CIBIL score.
- Foreign nationals can take the help of Nova Credit to convert international credit data from numerous countries to equal U.S. scores.
- Indian students can request a relative or a friend in the U.S. to be their cosigner to get a credit card application.
Credit scores comprise of an individual payment history that are concerned on debt and bill payments. Apart from accessing credit or obtain a loan with lowest interest rate, credit checks are mandatory for applying multiple job offers and applications of apartment rentals. Moreover the good U.S. Credit Score effects auto insurance costs, loan terms and the necessity of deposits for utilities.
One cannot transfer the credit score internationally, which restrains access to financial products. As an expatriate, you should raise your local credit history from the school level.
The freshmen and the foreign nationals to U.S. need to establish a credit profile from the day 1, as it is impossible to transfer the credit histories from their home countries. Anyhow, students can utilize their in-school years to create a credit profile, which will help them in later years of their graduation.
Here are the few ideas to make you understand the U.S. credit system and clear explanation for the newcomers to build their credit score and become financially successful in America.
One does not need a Social Security Number (SSN) to obtain credit score. Basically, the credit histories traced based on the name and address. The combination of these fields with the date of birth and an SSN together can be used to identify a specific person. Instead of waiting for an SSN, begin establishing your credit history. Ensure to maintain your address up to date on all your financial accounts so that the credit history stays active.
*Do you dream to study in U.S? Speak to Y-Axis, the no.1 overseas career consultant.
If you are already have a good credit history in another country, you should consider working with a partner like Nova Credit that allows Indians to certify for credit products in the U.S. with the CIBIL score. Nova credit converts the credit date from various countries to an equal U.S. score that can be shared with few companies by the new foreign immigrants, so that they can apply for American credit products.
Any foreign immigrant who are coming to U.S. must build a good relationship with a U.S. bank and must obtain a credit card as soon as possible. If a person has no credit history, will be eligible only for a secured credit card that needs a refundable security deposit and will have a credit limit which is based on the deposited amount.
The security deposit lessens the lender’s risk, which makes easy to get it approved. This is considered as one of the very common step to getting into the American credit system. If you are a student, the university you study will have bank branches that are acquainted to work with the Indian citizens.
*Are you planning to search for work in U.S? You can complete guidance from Y-Axis overseas career consultant
Act as a Co-signer
If the applicant have a relative or a family friend in the U.S. to act as co-signer, then you can request them sign their credit card application. If a co-signer have good credit score, it helps you to get approval faster. As the co-signer assures that eventually they are responsible for your debts. This step is an extreme benefit, when you apply for your first credit card or a loan, or even when you are re constructing your bad credit history.
Ensure timely payments, or you can opt for automatic payments. In any country, making payments in time, is an essential step for building a strong credit score. If you enrol in automatic payments, you can never get into bad credit history. Be a responsible person to usage of credit and always follow a thumb rule to continue maintaining credit card balance below the half of the credit limit.
Students who are looking for financial help, can try opting for lending money from an U.S. based lender like MPOWER financing. MPOWER provides loans for global students without getting a guarantee, i.e., a cosigner or a good credit history in U.S.
MPOWER, one of the Global lenders is an easiest way to build a U.S. credit history as all the payments are updated to U.S. credit bureau promptly.
With MPOWER financing, the graduates can refinance foreign loans or external debts. Refinancing is one such practice that paying off an old loan with a new loan which provides a preferred interest rate, minimal payments on desirable terms. This practice will help foreign immigrants that come to U.S. for the first time to build a good credit history and unleash their reach to wider American financial ecosystem.
Always remember, a strong credit history is essential thing which can help individuals save thousands of dollars all over their life. If you have good credit, it will generate to financial inclusive like for qualifying better interest rates on loans, to establish utilities, getting desirable jobs, or rent a car or apartment etc. with the tools provided above, the newcomers to the U.S can feel free to set up their lives by accessing financial success.
*Do you want to migrate to U.S? Speak to Y-Axis, a World’s no.1 overseas immigration consultant