Credit History Tips for Those Moving Abroad
You Can't Always Take Your Credit History With You
If you're moving abroad your credit history probably isn't something you're thinking about right now. There's so much planning to do, it might very well be the last thing on your mind. If that's the case, you might want to stop for a moment. You can have perfect credit here in the United States, but once you go overseas you may be back to square one. You need to prepare.
Technology Hasn't Fixed Anything
You'd think that technology would allow any country to access your credit history regardless of where you live. This isn't the case. If you live in the US and are moving to Germany, for example the German lenders won't have access to your credit history back home. In essence, you'll be starting from scratch.
And it's not like you can just continue to use US lenders and creditors. They won't always lend to those who live overseas. While this is bad for your credit card situation, it can be even worse if you have to find a place to live. The mortgage world becomes uninviting when they consider you a credit risk (and that's exactly how they'll see it).
How to Handle It
So is the credit history situation hopeless? Should you give up and stay here? No. If you are determined to move overseas you still can. There are just some things you need to prepare for.
First, see if you qualify for an American Express card and get on set up before you move. This will allow you access to the credit you need (although it won't take care of your lack of credit in the new country).
When you do move, start contacting lenders. Make sure you have copies of your US credit report and see what you can do about building up a new credit history. This might mean taking out a $500 loan (even if you don't need it) or applying for a secured credit card card. Eventually, with time, you will have a solid credit foundation in your new country of residence as well as your credit history back in the US.