Expats - Credit score

EXPAT LIFE -  Credit Score

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In the United States, your Credit Score here is the all important number leading to more freedom with your finances, better interest rates etc. 

A credit score is a number based on an analysis of a person's credit history, which shows the likelihood that people will pay their bills. Income is generally not considered. 

There are various ways of calculating credit scores. FICO score is the most widely known type of credit score. It is used by many mortgage lenders to decide whether the borrower may default on financial obligations to the mortgage lender. 

For Expats that have just arrived in USA it can seem difficult to get a credit score - whether you need certain types of bank accounts, mortgages or credit cards, you have to be patient to build up a credit history here. 

MORTGAGES

In order to get a mortgage you're going to need a credit score and employment in the USA.  There are a couple of sorts of loans, and you should talk to a mortgage professional about your options: FHA loan - Conventional loan - etc

You may want to use a Mortgage Lender, Mortgage Broker, or a Bank such as a high street bank. We have a Mortgage Lender affiliated with our real estate office who provides great service, and is my first call with any queries: Justin Messing, Eagle Home Mortgage.

RENTING

It is not unusual for Expats to rent before they buy unless they have previously resided in USA and are returning. This gives time to build up credit history. Renting locally usually requires initial payments of 1 month advance rent, 1.5 month security deposit and 1 month agent commission. 

CREDIT BUREAUS 

There are 3 different credit bureaus in US that provide these scores. However don't enquire after your score too often as that act alone can lower your score.  The three major credit bureaus are Equifax, Experian and TransUnion. 

Your Credit Score is based on the types of account you have. Loans, cellphones, bank accounts, store cards, credit cards, some utility bills, all count. They will look at your balances, upper limits, how long you've had them and whether you pay them off in full every month. 

MANAGING CREDIT 

On arrival in USA it is important to manage your credit limits to build up a credit score. You need to prove you are reliable and not high risk. One or two pre-paid credit cards or store cards, and a utility bill in your name can start you off. Manage them for a while, show a positive credit history, pay them off monthly. It's important to keep track of your reports.


Information is deemed reliable but not guaranteed.