Does Your US Credit History Transfer to Another Country After Relocating?

When you move to a new country, such as Canada or the UK, you might wonder if your U.S. credit history will automatically transfer with you. Unfortunately, your credit history does not transfer across borders. Each country maintains its own credit reporting systems and agencies, and these systems do not share information internationally.

Your U.S. Credit History Does Not Transfer

When you relocate to a new country, including Canada or the UK, you generally begin with a fresh credit profile. Moving to a new country means you start with a clean slate regarding your credit history. However, certain actions can help you establish credit in your new location.

Building Credit in a New Country

Here are several strategies you can consider to help you build credit in your new country:

1. International Credit Reports

Some credit reporting agencies may offer international credit reports, but their acceptance and scope can vary. These reports may not fully capture your credit history from your previous location. They can still be useful starting points, but be aware that their credibility and completeness may be limited.

2. Bank References

Presenting references from your U.S. bank or financial institutions can help demonstrate your creditworthiness to lenders in your new country. These institutions can provide insight into your past financial behavior, which can be valuable when establishing your credit profile in your new location.

3. Secured Credit Cards

Many countries offer secured credit cards, which can help you build a credit history in your new location. These cards often have a deposit that serves as collateral, making them a low-risk option for lenders. By using and maintaining good payment habits, you can start to build a credit history in your new country.

4. Credit Bureaus

Understanding the credit bureaus in your new country is crucial. For example, in Canada, the major credit bureaus are Equifax and TransUnion. These agencies have their own methods for assessing creditworthiness and determining credit scores. Familiarize yourself with these bureaus and their reporting practices to navigate the credit system effectively.

Accessing Your U.S. Credit History in Another Country

Even though your U.S. credit history doesn't transfer, you can still access it in your new country. Obtaining a copy of your U.S. credit report can be helpful. Some lenders may consider reviewing your U.S. credit history, but ultimately, it is up to them. Providing your U.S. credit report can give them a more comprehensive view of your financial history.

Building a New Credit History

To establish your new credit history in your new country, follow these steps:

1. Establish Your Identity

Start by establishing your identity in your new country. This can be done by registering to vote, obtaining a national ID, or opening a bank account. In the UK, for instance, you can register to vote by signing up on the electoral roll. Opening a basic current account is another good way to demonstrate your financial stability. In the UK, you can also use credit building services like Portify to build your credit history by reporting your payment behavior to Credit Reference Agencies.

2. Report Your Payment History

Ensure that your payment behavior is reported to the relevant credit agencies in your new country. Good payment history can help you establish a positive credit history.

Conclusion

While your U.S. credit history does not transfer to another country, there are several strategies you can use to build a new credit history in your new location. Understanding the credit reporting systems in your new country and utilizing local resources like bank references, secured credit cards, and international credit reports can help you establish a strong financial profile.