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:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

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

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... 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!