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A solid credit history is important. It’s your financial power that allows you to make large purchases by taking out loans. When you move abroad, unfortunately, your credit report does not move with you.
This means that you start from zero. It’s not all bad news, though. There are a couple of things that you can do to establish a credit record quickly as soon as you touch down.
Keep reading for methods of establishing credit in a foreign country.
Set Up a Bank Account and Credit Card
The first task on your agenda to establish credit is to set up a bank account in the country. You’ll need a bank account to make the payments necessary to build credit.
Usually, credit card companies are open to giving credit cards and a conservative overdraft limit to new arrivals in the country. Once you have a credit card set up, stay well below the overdraft limit and make payments regularly and on time.
This is a fantastic way to quickly establish an international credit report. Remember to keep on top of your payments. The last thing you want is to establish a bad credit score.
Take Out a Mobile Phone Contract
The best way to establish credit is to set up contracts that require you to make regular payments. As you’ll need to get connected when you arrive in a new country, a mobile phone contract is a great option.
You can choose any contract within your budget, the recurring payment doesn’t need to be a large amount. Any contract is essentially a credit agreement. When you make regular payments you’re portraying your trustworthiness in repaying debt.
Report Rental to Credit Bureaus
Rental payments are not automatically reported to credit bureaus. However, this is a fuss-free way to build an international personal credit report.
When you’re looking for a place to rent ask the landlord or property management company if they report the rental to credit bureaus. If they do, great!
If they don’t, seek out a third-party service that will report your payments on your behalf.
Finance a Car
As mentioned above, a contract including recurring payments is a credit agreement. Financing a car is a rapid way to build credit, as long as you make the payments on time.
The longer you pay off a car, the better your payment history will be and the better your credit score. It’s also great for boosting your credit mix with different types of payments.
Interested in building credit by financing a car? Look here for more information.
Get Started Establishing Credit
With these methods, you can start establishing credit in a foreign country as soon as you touch down. Keep in mind that any contract that you enter serves as a credit agreement and you should take advantage of that.
Now that you know how to establish credit, keep exploring our site for more personal finance tips!