Last month we wrote about how to build your credit score if you recently immigrated to the U.S. We wrote that your credit history and credit score in another country won’t be factored into your credit history and credit score in the U.S. Well, Nova Credit is changing that.
Immigrants have learned the hard way that arriving in the U.S. with virtually no financial history, means it’s nearly impossible to get a credit card, lease for an apartment, or purchase a house or car.
Transferring Your Credit Pays Off
When you don’t have a credit history—or have a low credit score—you’ll potentially pay thousands of dollars more in security deposits and interest rates. That’s because lenders, landlords, cell phone providers, and utility companies have no way of knowing how financially stable and trustworthy you may be.
It can take years to establish credit history in the U.S. and build an excellent score that gets you the best interest rates. The average FICO score in the U.S. in 2017 was 700 — that ranks as “good” by FICO’s standards, below “very good” and “exceptional.” FICO, which stands for Fair Isaac Corporation, is the most popular model for credit scoring.
If you’re a newcomer without years to spare or mountains of money to buy cars and secure housing with cash, you might be able to transfer your existing credit history from your home country to the states by using Nova Credit.
About Nova Credit
Nova Credit is a company founded by immigrants for immigrants. Based on the belief that human progress relies on human movement and collaboration, its mission is to inspire and empower the flow of people across borders. It helps people move their financial history to the U.S. so they can thrive in their new home.
The company has built pioneering technology to locate and transfer your international credit data to U.S. companies that require credit checks. Nova Credit seamlessly translates that data into U.S. standards so a lender gets a more holistic assessment of your credit-worthiness.
How Does Nova Credit Work?
Nova Credit plugs into the top global consumer credit bureaus to bring your credit to the U.S. It builds your Credit Passport® for American lenders, property rental companies, and others to leverage.
Currently, Nova Credit services newcomers from Canada, Australia, Brazil, Korea, India, Mexico, and the U.K. Shortly, it will offer its services to immigrants from China and Nigeria as well.
When used for loan applications at banks, educational institutions, car dealerships, and others, applicants receive Nova Credit’s services for free. Nova Credit charges businesses and institutions for accessing your credit file—not individuals. When applying for an apartment or house rental, a property manager might charge you a $49 to $69 fee. But that’s only if and when your report is successfully transferred.
Getting started with Nova Credit is simple. Visit its marketplace to see which credit cards you can apply for using your international credit history. Soon, Nova will also launch with partners for student loans, car loans, apartment rentals, and more. Let Nova Credit know what you’re looking for. The company will notify you when that feature goes live.