The path from no-credit history to a good one


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » The path from no-credit history to a good one

The path from no-credit history to a good one

The content is accurate at the time of publication and is subject to change.
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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!