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[Friday, January 18, 2008]
Will You Qualify for a Credit Card Application Overseas?
Do you know what the status of your credit history depend on? There are lots of factors influencing it, but the key one is how regularly and timely you pay credit card bills. That is what builds your creditworthiness in the eyes of a potential lender.
Besides, traditionally, you can establish and build a solid credit history in your own country only - a creditor doesn't like you changing a place of residence as it increases a potential risk of revenue loses. Similarly, you are not advised to frequently change your work as it presents you as a fickle and unreliable person.
Now, you can easily guess that your credit history will be reduced to nothing once you decide to change a place of residence and move overseas.
New Credit History
You cannot take your credit history with you to another country as it is not a reliable enough indicator of your credit solvency in this very country. No matter what payment history you have demonstrated for years in your native country, a credit company will want to rest assured that you will show the same faultless credit management habits. You will be required to open a new credit file.
Another important thing to know. Once you move from the States, all your relations with the US banks will be broken just for a similar reason - your credit worthiness has gone down due to the change of residence.
Credit Insolvency
We have a letter from an American who had to move to Germany to nurse his aged aunt. Due to this and a number of other reasons, Mr. Anderson had to stay in Germany for life. And it was straight away that he realized his good credit built in the States did not count in here.
So he had to start it all over. Because of the lack of credit, Mr. Anderson faced uncertainty on the part of German lenders and could cherish no hope of being approved for a mortgage.
No doubt, the absence of credit dictates a much more promising financial future than a gross bad debt but let's agree that it is sort of disappointing to lose what you have worked for year after year.
Credit Establishment Tips
Are you going to move from the USA to Europe or somewhere else and eager to have access to credit cards and other loans in the new country? Beware that you will have to establish a new credit file there and spend a number of years building credit worthiness with new lenders.
The first thing you should do to make a start is to get the copies of your US credit report and use it as the evidence of your previous credit activity. It will help you to get approved for a small loan to open a new credit file or qualify for a secured credit card which is an excellent variant for those without credit rating. Make sure the card reports to all the credit bureaus in the country, which will provide for the most accurate information on all credit card transactions and other financial activity.
A few years of responsible credit card use, meaning full and timely credit card payments every month, will ensure a successful beginning of you credit career in the new country.
In case you would like to preserve your relations with creditors back in the USA, you can choose to apply for any credit card before you move to the new country of residence. It will provide for the access to credit once you decide to come back but it will not be valid abroad. Keep the credit line open when you leave and your US credit history will keep on.
Being savvy, you will build a solid credit foundation in your new country of residence and will preserve good credit history back home - in the USA.
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