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Research: The path from no-credit history to a good one -

American dreams have prompted many to migrate to the U.S. for the sake of better living standards or in the hope of fulfilling a long-cherished dream. Most often people who migrate from one country to another are faced with problems with regard to their credit history. It is important to learn a few basics in tackling this problem and work on building a credit history.

Most often there are instances where one realizes after opening a bank account, that one has been denied a debit card. It is astounding for someone who would have just deposited the money in the account and then being denied a card.

This is not limited to the card in itself. If one has to avail an auto loan in the new country it would be unlikely that any dealer would be willing to lease the vehicle as the dealer has no means to verify the individual's credit history as well as his credentials. Cross country laws are applicable everywhere and cross-border data laws often come in the way and withhold credit information from being exchanged. This in turn hampers the situation further.

Countries do not share information across the border due to the stringent data privacy as well as consumer protection laws that are in place. Even in situations where these laws are redundant, it is difficult to get hold of a person's credit history in his home country due to the differences in reporting as well as the variations in formats. This makes the information hard to share globally.

So the individual is always at a loss, while migrating from one country to another. For instance, someone who migrates from the U.S. to another country, the person will have to leave his credit score behind and start all over again and work on rebuilding or reestablishing credit ratings.

Basically a credit history gives lenders an insight into a person's repaying capacity. So when there is no credit history, there is nothing to fall back on with regard to the person's credentials. Lenders are not too keen to contact reporting agencies as there is no system where the information could be transferred from reporting agencies to lenders in other countries.

In order to establish credit history from a no-credit history one has to be open and talk to the lender very frankly and explain the situation before applying. Some may be willing to help while there may be others who will not. Sometimes lenders might be willing to offer credit based on the income proof as well as verification from the employers, while others might ask for an upfront deposit or documents pertaining to one's financial history. It is advisable to carry a hard copy of one's credit history. Always ensure that it is in English and get it translated if it is in any other language. Lenders might consider viewing that bit of information and might make attempts to verify the same before placing the individual on the credit ladder. In the meanwhile one must talk to their employers and explain that they are looking forward to establishing credit.