- International credit scores generally do not transfer to credit scores in the U.S.
- Most credit-builder products, like secured credit cards, look at your bank account instead of your credit score.
- Nova Credit allows immigrants from some countries to apply for credit with an international credit score.
In the United States, having a strong credit score is imperative to access financial services such as loans, credit cards, and lower insurance rates. Most landlords will even require a good credit score to rent an apartment. However, building credit as a newcomer to the States can be complex and time-consuming.
For better or for worse, your home country's credit score won't follow you to the U.S. Until you start building credit, you're classified as "credit invisible." However, you may be able to use your credit history abroad to apply for credit cards and get your foot in the door in building your American score.
What is an international credit report?
An international credit report is a document that provides information about a person's creditworthiness in another country. It can be used to help make decisions about extending credit to an individual.
You typically can't transfer your credit score from another country to the United States. A universal credit system doesn't exist, and due to the disparities in scoring systems, an international score may not seamlessly translate to the American credit system.
"Access to cash or verification of income is rarely taken into account on its own by lenders, so even if an individual has a steady and reliable source of income or good credit history from their home country, they still come to America as credit invisible." says Misha Esipov, co-founder and CEO at Nova Credit.
How international credit reports work
Information included
An international credit report can include a variety of information, such as:
- Financial data: This can include payment history and loan amounts
- Legal filings: This can include public record information and judgments
- Credit scores: This can include credit scores and risk scores
- Other information: This can include employment history, inquiry history, and derogatory marks
How data is collected
International credit reports are compiled by agencies like Dun & Bradstreet, Experian, and Equifax, and can be based on information obtained from public records, trade references, and financial statements.
Steps to request a report
To get an international credit report, you can do the following:
- Work with a credit reporting agency
- Provide the agency with the name and address of the person or company you want to evaluate. Popular agencies include Dun & Bradstreet, Experian, and Equifax.
- Use a cross-border credit bureau
- Some credit bureaus, like Nova Credit, can translate foreign credit data into a U.S.-equivalent score.
- Use a standardized international score
- Some companies, like Creditsafe, use a standardized international score to compare credit reports from different countries
How credit scores work in the U.S.
Credit scores determine how likely you are to repay your debts or bills on time. In the U.S., lenders heavily rely on your credit score to assess your trustworthiness as a borrower. Your score is a three-digit number between 300 to 850. The higher your score is, the better your chances of qualifying for loans, credit cards, lower insurance rates, and even an apartment.
Lenders and financial institutions report your credit score to the three major credit bureaus (Equifax, Experian, and TransUnion), who will each calculate your credit scores differently.
There are two types of credit scoring models: FICO and VantageScore. However, 90% of the top lenders use FICO scores to assess your creditworthiness. Here's a breakdown of the factors that make up your credit score and how each is weighted.
| FICO | VantageScore |
| Payment history (35%) | Payment history (40%) |
| Credit balance (30%) | Length & type of credit (21%) |
| Length of credit history (15%) | Percent of credit used (20%) |
| New credit (10%) | Total debt/balances (11%) |
| Mix of credit accounts (10%) | Recent credit behavior and inquiries (5%) |
| Available credit (3%) |
Varying reporting standards
Other countries have credit-scoring systems that differ from the United States.
Canada has the closest credit rating system to the United States. In fact, it also works with Equifax and TransUnion to assess your creditworthiness. Factors such as payment history and credit utilization also heavily influence one's credit scores. The primary difference between the American and the Canadian credit scoring system is that the latter has a broader score range (300 to 900).
Many countries lack an official credit scoring system, like Japan. In Japan, your creditworthiness varies by the bank you do business with. These banks usually look at your salary and length of employment.
Transferring your international credit history to the U.S.
Even though you generally can't transfer your credit score to the U.S. that doesn't mean your financial history is completely moot.
When you start applying for credit-building products, most services use your banking information instead of your credit report.
What is Nova Credit?
Nova Credit is a cross-border credit bureau that partners with lenders and international credit bureaus to aid immigrants from certain countries in their credit building journey.
Nova Credit's proprietary program, Credit Passport® allows immigrants to share their credit history from their home country with financial institutions in the U.S. As a result, newcomers get access to valuable services that empower them to lay a strong foundation for their financial well-being.
How to get started
Nova Credit can help you kickstart your credit-building journey if you've recently moved to the States. The company serves Australia, Brazil, Canada, Dominican Republic, India, Kenya, Mexico, Nigeria, the Philippines, South Korea, Spain, Switzerland, the US, and the UK.
- Check the age of your US credit file — If you already have a US credit file older than six months, you may not qualify for Nova Credit's services. If you're unsure if you have a credit history, you can check AnnualCreditReport.com to request a credit report and see if you have a score.
- Select a credit card — You'll want to look through Nova Credit's offerings to see recommended cards for your home country. After you've chosen a card, select "Apply Now." You'll be taken to the credit card's website, where you must fill out an application.
- Gather documents for your application — The credit card issuer may need proof of your identity and US address. You'll need a government-issued document or a passport to verify your identity. For proof of your address, you can submit a bank account statement, a utility, or a phone bill with your name and address on it.
- Check for applying without a U.S. credit history — While filling out a credit card application, check a box with "apply without having a U.S. credit history." This allows Nova Credit to share your home country's credit history with the credit card company.
Read our Nova Credit review for more details.
Building credit in the U.S. if you're credit invisible
When you arrive from another country, you're considered credit invisible, meaning you'll have no credit history. "Even if they have a good credit rating in their prior home countries, all newcomers have to build their U.S. credit history back to its previous levels from scratch, which can take as long as five years," says Esipov.
Although you can't bring your credit score with you, there are ways to get on the fast track to establishing a strong credit profile.
What credit score is considered good?
A good FICO score starts at 670 and a good VantageScore starts at 661. If you have anything below a good credit score, you may find it challenging to qualify for certain financial products with the best terms. To help you understand how lenders view your credit score, the table below breaks down the categories for each FICO and VantageScore credit score range.
| Credit score category | FICO | VantageScore |
| Poor/Very Poor | 300-579 | 300-499 |
| Fair/Poor | 580-669 | 500-600 |
| Good/Fair | 670-739 | 601-660 |
| Very good/Good | 740-799 | 661-780 |
| Exceptional/Excellent | 800-850 | 781-850 |
Start building credit
Building credit can feel like a frustrating catch-22. You need credit to qualify for credit-building services, yet how can you get started when you have little to no credit?
Fortunately, there are some ways you can start building your credit profile as a credit invisible.
One method is to become an authorized user on a credit card or get a co-signer on a loan. This allows you to build credit using someone else's credit profile, as long as they agree to help.
Alternatively, you can use credit builder products like a secured credit card or credit builder loan, which don't require high credit scores to qualify. Some of the best credit builder loans and best secured credit cards don't require any credit checks at all.
You can even build credit without having to borrow a line of credit. For instance, Experian Credit Boost lets you build credit by reporting timely payments you've made on your recurring bills. Similarly, rent reporting services will allow you to build credit using your rent payments. The best rent reporting services will allow you to add up to 24 months of prior rent payments.
Steps to take to improve your credit score
Establishing a method to build credit is only half the battle. The other half is actively managing and improving your credit. "Once you have access to credit-related tools, it's important to pay on time and keep a close eye on your usage to further improve your credit profile," says Esipov.
These tips help you stay responsible with your credit and move towards a good to excellent credit score.
- Make timely payments: Your payment history accounts for most of your credit history. Even one missed payment can cause your score to drop. So be sure to make your payments on time.
- Keep your credit utilization low: Your credit utilization ratio is the ratio of credit you use compared to your credit line. Experts recommend keeping your credit usage below 30% of your allowed limit.
- Limit your credit card applications. Avoid applying for many credit cards or loans at once. When you submit an application for a line of credit, lenders perform a hard inquiry on your account, causing your credit score to drop. Several hard inquiries can make a dent in your score.
- Monitor your credit card. Continue to monitor your credit score to track your progress and check for identity theft and unauthorized account openings. Some of the best credit monitoring services are free.
Frequently asked questions about transferring international credit scores
When you move to another country, your credit score won't be useful when you try to borrow money there. However, you will still be responsible for any remaining debt you owe in the U.S.
Yes, there are costs associated with getting an international credit report. Fees will vary depending on the provider and the level of detail required.
You can improve your credit report by engaging in good financial habits such as timely payments, managing debt, and keeping your credit utilization low can improve your international credit report.
Yes, you can use your international credit report to apply for credit in a different country. Many lenders in other countries will consider your international credit report, though requirements may vary.
