When you move to the U.S., establishing a good credit score is a top priority. However, one of the biggest hurdles immigrants face is starting from scratch — with no U.S. credit history. But did you know that your international credit history can play a significant role in your ability to build credit in the U.S.? Let’s explore why your international credit history matters and how it can help you.
1. It Shows You Have a Financial Track Record
Your international credit history is proof that you have experience managing credit in another country. Lenders and credit card companies may consider your international credit report when deciding whether to approve you for a U.S. credit card or loan. This can be especially helpful if you don’t have a U.S. Social Security Number (SSN) or a lengthy credit history in the U.S.
2. Helps Establish Your U.S. Credit Profile Faster
Rather than starting with a completely blank slate, your international credit history can provide a solid foundation for building your U.S. credit score. Some financial institutions, like Transitioner, allow you to link your international credit report to your new U.S. credit profile. This means you won’t have to wait for months or even years to build a credit score. You can start right away.
3. Reduces the Need for Co-Signers or Higher Deposits
Without a credit history in the U.S., some lenders may require you to provide a co-signer or pay a larger deposit to secure credit. However, if your international credit history is considered, this could help reduce the need for a co-signer or hefty deposit. It’s one of the many ways you can begin to build a strong financial foundation more quickly.
4. Access to Better Financial Products
Once you have established your U.S. credit profile, you’ll have access to a broader range of financial products, such as lower-interest loans and credit cards with better rewards. Starting with your international credit history can help you unlock these opportunities sooner rather than later.
5. Improves Your Financial Credibility
Your international credit history also shows that you’ve successfully navigated the challenges of managing credit in another country. This makes you more credible in the eyes of U.S. financial institutions, helping you gain access to services that may otherwise be out of reach.
In summary, your international credit history is a valuable tool in your quest to build credit in the U.S. It can make the transition smoother and faster, ensuring that you can start building your financial future as quickly as possible.