Newcomers to the United States used to have to build credit from scratch — now they can transfer their international credit report to the U.S. to apply for credit cards, loans, housing and more.
The Problem: Credit history used to stop at the border—until now
It used to be that a newcomer to the United States couldn’t “bring” their credit report or international credit score with them. Even someone with extensive credit in their prior home country would have to take on the onerous task of building her U.S. credit history back to its previous levels from scratch, which can take as long as five years.
The implications for newcomers in the U.S. are enormous: even the most basic tasks such as getting a credit card, leasing an apartment, and getting a cell phone plan or student loan all require a U.S. credit score. Which means that you need credit to get credit, yet you lose your credit score when you arrive.
Why? The underlying issue is that banks and credit bureaus previously didn’t have the technology to interpret different credit scoring models from systems from around the world.
New: Use your international credit report to apply for U.S. credit cards and more
Here’s the good news: Nova Credit has built technology to translate credit data from countries like Australia, Canada, India, Mexico, the UK and more into a U.S.-equivalent score that newcomers can elect to share with U.S. companies when they apply for credit products here.
This means that newcomers to the U.S. can now apply for credit cards, apartments, loans and other credit products by using their international credit history. Once you use your international credit history to get a credit card or other credit product here, you can start to build a U.S. score. Is your credit score international? Yes.