Do my country’s debts affect new credit in the United States?

If you are thinking of moving to the United States, you will surely have several important issues in mind. When planning a change of country, you should invest a lot of time to investigate things related to housing, work, the children’s school, among others. Also, regarding your financial situation, you are probably wondering Do my country’s debts affect new credit in the United States? Below we clarify your doubts in a quick and simple way.

Do my country’s debts affect new credit in the United States?

Your credit history will be a fundamental element to build the future you want in the United States. That said, it is clear that you will have to focus on building your credit history in this country.

However, those who already have a credit history (bad or good) in their country, probably want to know if the debts of their country of origin affect the new credit in the United States. The simple and short answer to this question is: No.

Why is the Credit History from my home country not evaluated in the United States?

The point is not that the North American institutions are not interested in the credit history in your country of origin, but that to date two problems have arisen in this regard. Initially, it was very difficult to match and cross the systems to investigate your credit situation in the two countries. Today, with technological advances, it is easier to do so. However, a few years ago another inconvenience arose between the legislations of the different countries that is related to the protection of consumer data.

The theft of personal data and, especially, bank details is a real headache for current legislation. It is necessary to consider that the bank reports that contain the credit history include a lot of sensitive and private information.

What is credit history?

Credit history is a record of a consumer’s ability to pay debts and of the responsibility that has been demonstrated in the payment of the same. All of this information is contained in each person’s credit report. This report is issued by some of the main credit analysis companies in the United States. Credit history includes the following:

  • Numbers and types of credit accounts
  • How long each account has been open
  • Amounts owed
  • Amount of available credit used
  • If bills are paid on time
  • Number of recent credit inquiries

This credit history also contains consumer information that is related to bankruptcies, liens, judgments, or collections.

Why so much concern about credit history?

As we indicated above, if you are thinking of living in the United States, you must organize many things and your credit history will help you solve many of them.

For example, to rent a home, the owner may ask you for a credit report with your history to be sure that you will pay the rent. On the other hand, in some states, to hire the electricity or telephone service in your new home, you may also be asked for your credit history. Keep in mind that these are just a few examples of situations that you can solve by submitting your credit report.

How does it affect or how can you use your credit history from your country of origin?

As we already mentioned, the credit history of your country of origin will not affect you in the United States. This means that a bad record will not haunt you but, on the other hand, a good record will not automatically help you in your personal project in this country either.

But is there a way to take advantage of the excellent credit history of my home country when I settle in the United States? If there are ways to take advantage of your credit history in the USA, we will explain it to you below.

For example, the US credit bureau Equifax operates in 15 countries in Europe and Latin America. If this company operates in your country of origin, before traveling to the USA you can request a credit report to use it as support or backup when making an application or operation.

Credit history reports from banks you’ve worked with might also help. Evidently, a report issued by a large international bank will always be more useful than by a local bank. Finally, if you have an American Express account in your country of origin, your status as a foreign account holder can positively influence your application in the United States.

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