Mar
9
Does Credit History Follow You Upon Relocation From The United States To Canada?
Filed Under Credit History | Leave a Comment
We recently received a very good question from a foreign exchange student who is moving out of the country. He asked if the credit established in the U.S follows a person, in this case to Canada. Here is what we found through our research.
SSN vs. SIN
In the United States, individuals are identified by their social security number (SSN). There is no other person in the United States with an identical SSN. In Canada, people have social insurance numbers (SIN), which serves the same purpose. Credit bureaus in Canada use the SIN to keep track of individual’s credit reports. Since the U.S and Canada are two different countries, SSN’s cannot be tracked in the Canadian systems and SIN’s cannot be tracked in the U.S systems.
Credit Bureaus
In the United States, there are three major credit bureaus: Experian, TransUnion and Equifax. These three bureaus provide credit reports and scores for all individuals with a social security number who have opened a line of credit or a loan. Canada’s credit bureaus follow the same procedures.
In Canada, the three major credit bureaus are Equifax Canada, TransUnion Canada and Northern Credit Bureaus, Inc. In several scenarios, people have found that the United States TransUnion and the Canada TransUnion share the same data in their systems. In result, there may be a possibility of a Canadian financial institution pulling your U.S credit history. This could be good for people with positive credit and bad for those with not so good credit. Equifax may do the same and share their data between countries. We have found that Experian has no effect in foreign credit because it only conducts reports on U.S residents. The same applies for Northern Credit Bureaus and its Canadian residents.
Credit Scores
As far as credit scores go, TransUnion Canada and Equifax Canada have both implemented the FICO system from the United States. The only difference being is credit scores in Canada range between a score of 300 and 900. Scores in the United States use a scale of 300-850.
Scores closer to 900 are a lower risk for the lenders, which could mean a lower interest rate to the borrower. The opposite can be said for scores closer to 300. These scores would be a much higher risk for the lender and in result would mean a higher interest rate for the borrower.
If I do not have an SIN and am a American citizen, how do I apply for credit if I move to Canada?
Just like in the U.S, in Canada it is hard to obtain credit without a credit history. You can walk inside a Canadian bank and explain your situation to them. Some banks in Canada will ask for some information from your U.S credit report. This will enable them to make an easier and quicker decision to issue credit. Some may offer you a secured credit card which will help you build a credit history by depositing a certain amount on a pre-paid credit card and then make payments.
Also, as stated above, TransUnion may have the ability to display U.S credit report information to Canadian financial institutions because of shared data between TransUnion Canada and the United States TransUnion.
What if I want to move to Canada for an extended period of time and then move back to the United States?
If you are not planning on being a long term resident or are not planning on buying a home, it may be best to stick with United States based international credit cards. Credit card companies with affiliates in the U.S and Canada would work best. These cards will work in both countries but will only report to the U.S credit bureaus.
Here is an excerpt from the U.S Department of State: “If you will be abroad for an extended period, you may want to arrange for the delivery of your mail. Some banks and international credit card companies handle mail for customers at their overseas branches. In addition, post offices in many countries will hold mail for travelers under their General Delivery (Poste Restante) services. U.S. Embassies and Consulates do not handle private mail. Check with the embassy of your destination country to see if that will be possible there. A listing of foreign embassies and consulates in the U.S. is available at http://www.state.gov/s/cpr/rls/dpl/32122.htm. “
A safe bet is that if you owe on a debt in the U.S and move out of the country, you will owe on that debt upon your return, as it will be recorded on your credit report. Will creditors try to collect from you in another country? Well that is the golden question. The golden response is, they may have a right to collect. Will that new country consider your U.S credit history? It may.
Regardless of where you move, it is best to maintain a positive credit history. If your new country of residence chooses to look at your U.S credit history you want to make sure it is clear of negative information. However, one cannot assume that a positive U.S credit history will help establish new credit in another country.
By: Pete Glocker
SSN vs. SIN
In the United States, individuals are identified by their social security number (SSN). There is no other person in the United States with an identical SSN. In Canada, people have social insurance numbers (SIN), which serves the same purpose. Credit bureaus in Canada use the SIN to keep track of individual’s credit reports. Since the U.S and Canada are two different countries, SSN’s cannot be tracked in the Canadian systems and SIN’s cannot be tracked in the U.S systems.
Credit Bureaus
In the United States, there are three major credit bureaus: Experian, TransUnion and Equifax. These three bureaus provide credit reports and scores for all individuals with a social security number who have opened a line of credit or a loan. Canada’s credit bureaus follow the same procedures.
In Canada, the three major credit bureaus are Equifax Canada, TransUnion Canada and Northern Credit Bureaus, Inc. In several scenarios, people have found that the United States TransUnion and the Canada TransUnion share the same data in their systems. In result, there may be a possibility of a Canadian financial institution pulling your U.S credit history. This could be good for people with positive credit and bad for those with not so good credit. Equifax may do the same and share their data between countries. We have found that Experian has no effect in foreign credit because it only conducts reports on U.S residents. The same applies for Northern Credit Bureaus and its Canadian residents.
Credit Scores
As far as credit scores go, TransUnion Canada and Equifax Canada have both implemented the FICO system from the United States. The only difference being is credit scores in Canada range between a score of 300 and 900. Scores in the United States use a scale of 300-850.
Scores closer to 900 are a lower risk for the lenders, which could mean a lower interest rate to the borrower. The opposite can be said for scores closer to 300. These scores would be a much higher risk for the lender and in result would mean a higher interest rate for the borrower.
If I do not have an SIN and am a American citizen, how do I apply for credit if I move to Canada?
Just like in the U.S, in Canada it is hard to obtain credit without a credit history. You can walk inside a Canadian bank and explain your situation to them. Some banks in Canada will ask for some information from your U.S credit report. This will enable them to make an easier and quicker decision to issue credit. Some may offer you a secured credit card which will help you build a credit history by depositing a certain amount on a pre-paid credit card and then make payments.
Also, as stated above, TransUnion may have the ability to display U.S credit report information to Canadian financial institutions because of shared data between TransUnion Canada and the United States TransUnion.
What if I want to move to Canada for an extended period of time and then move back to the United States?
If you are not planning on being a long term resident or are not planning on buying a home, it may be best to stick with United States based international credit cards. Credit card companies with affiliates in the U.S and Canada would work best. These cards will work in both countries but will only report to the U.S credit bureaus.
Here is an excerpt from the U.S Department of State: “If you will be abroad for an extended period, you may want to arrange for the delivery of your mail. Some banks and international credit card companies handle mail for customers at their overseas branches. In addition, post offices in many countries will hold mail for travelers under their General Delivery (Poste Restante) services. U.S. Embassies and Consulates do not handle private mail. Check with the embassy of your destination country to see if that will be possible there. A listing of foreign embassies and consulates in the U.S. is available at http://www.state.gov/s/cpr/rls/dpl/32122.htm. “
A safe bet is that if you owe on a debt in the U.S and move out of the country, you will owe on that debt upon your return, as it will be recorded on your credit report. Will creditors try to collect from you in another country? Well that is the golden question. The golden response is, they may have a right to collect. Will that new country consider your U.S credit history? It may.
Regardless of where you move, it is best to maintain a positive credit history. If your new country of residence chooses to look at your U.S credit history you want to make sure it is clear of negative information. However, one cannot assume that a positive U.S credit history will help establish new credit in another country.
By: Pete Glocker
Feb
25
I have a bad credit history and was wondering if there is a way to start fresh with a new social security?
Filed Under Credit History | 8 Comments
I have been in bad debt and my credit history is really bad by now. I was wondering if there was any chance for me to make it all better by getting a new social security. Is this possible?
Feb
19
The simple fact of life today is that in many situations credit cards are vital. It is extremely difficult to rent a car for instance if you do not have access to a credit card in your own name. Also, shopping on line is not very easy at all if you do not have a credit card. While many websites will accept debit cards, if you are trying to book a hotel abroad or buy from any website based abroad, it can be next to impossible to find a payment method other than credit card. This is why more and more people are seeking to get credit cards, even when they have poor credit histories.
Guaranteed Acceptance Credit Cards
There are now a number of credit cards available that do not rely on a good credit history. The lenders are willing to provide these cards to absolutely everyone no matter what their credit rating may show. This is very good news for people who have bad credit ratings but still need access to a credit card. There are some important differences between these credit cards and regular cards however, so it is a good idea to be aware of the features that are different.
What’s the Catch?
The most obvious feature that people come across, and one that can surprise customers the most, is the existence of a subscription or set up fee for the card. This may be just as little as five pounds a month but can be substantially higher. There are also cards that charge an annual fee and these may prove to be better value if you plan on keeping the card for more than a few months. While customers have become accustomed to not having to pay for their credit cards, these fees are in many situations more than worth the expense given the convenience that the card will bring.
Don’t Abuse These Cards!
Another feature of these cards is that the interest rates and penalty charges for late payment are often very high. Interest rates can easily be as much as twenty five or even thirty per cent so you probably do not want to rack up too much debt on these cards. Also, if you miss payments there may be provisions for very high penalty fees and even for your interest rate to be increased. So if you are planning on getting a credit card targeted for those with bad credit, then make sure it is not something that is going to get out of hand and that you will be able to control your expenditure on it. Also, you should probably only take one out if it is for a specific necessary purpose, and not simply for occasional shopping.
By: Joseph Kenny
Guaranteed Acceptance Credit Cards
There are now a number of credit cards available that do not rely on a good credit history. The lenders are willing to provide these cards to absolutely everyone no matter what their credit rating may show. This is very good news for people who have bad credit ratings but still need access to a credit card. There are some important differences between these credit cards and regular cards however, so it is a good idea to be aware of the features that are different.
What’s the Catch?
The most obvious feature that people come across, and one that can surprise customers the most, is the existence of a subscription or set up fee for the card. This may be just as little as five pounds a month but can be substantially higher. There are also cards that charge an annual fee and these may prove to be better value if you plan on keeping the card for more than a few months. While customers have become accustomed to not having to pay for their credit cards, these fees are in many situations more than worth the expense given the convenience that the card will bring.
Don’t Abuse These Cards!
Another feature of these cards is that the interest rates and penalty charges for late payment are often very high. Interest rates can easily be as much as twenty five or even thirty per cent so you probably do not want to rack up too much debt on these cards. Also, if you miss payments there may be provisions for very high penalty fees and even for your interest rate to be increased. So if you are planning on getting a credit card targeted for those with bad credit, then make sure it is not something that is going to get out of hand and that you will be able to control your expenditure on it. Also, you should probably only take one out if it is for a specific necessary purpose, and not simply for occasional shopping.
By: Joseph Kenny
Feb
7
Im 18 years old and lack credit history..the only thing I have as of now is a Macy’s card which I’ve been using for just one month. Can anyone give any suggestions or recommendations as to how I can start building my credit? Or which credit card companies will be willing to take on a customer with limited credit history? I’ve applied for several but got rejected due to my lack of credit history.
Feb
5
Whether you are looking for a secured loan or want to apply for a credit card, having a good credit history is very important. Having a credit card these days has turned out to be a necessity. It does not only extend your money but it can be used for other things you might need in the future as well.
Your credit card will be your report guide or history for future transactions that you might have such as loans. It works in that way because your credit card will keep tab on how you use your credit card. They will then collate all your transactions that you have used on your credit card to a company that collects credit report.
Late Payments
It is important to remember to avoid making bad transactions or late payments when you have used the card. This will be viewed as a negative thing in your credit report. The more negative your credit report becomes; the less chance you’ll have of getting a better loan such as mortgages or car loans.
There will be some loan companies that will give a loan to a person with bad credit history. The only catch is that their interest rates will be higher than normal due to the high level of risk they are taking. Having bad credit history might also give you problems with finding a job or an apartment.
Rebuild
So it is important to have a positive credit report. If you do not have a positive credit report, you should realize that you should rebuild your credit history. It is a difficult process and long process, but it will be worth it to get your credit repaired once again.
The first thing you’d have to do is take a look at your credit report history. There’s a free site the U.S. government offers the www.annualcreditreport.com. The website helps a person view and study his credit history.
By being able to study his or her credit report, one can now see where he or she went wrong or might have been an error. If there are any errors try to repair them. If the credit problem was really your fault, try to learn from it.
The next thing you’d do is list down all your living expenses such as mortgages, rents, food expenses, entertainment expenses, etc. Then also list the source of all your income. If you see that the expenses are lopsided, maybe a change in lifestyle will help prevent charging your credit card way too much.
Apply For A Card
The next thing you’d have to do is apply for another card. Apply for the thing that started this whole mess. You are not most likely getting a standard credit card, so apply for a secured one.
A secured credit card is easier to obtain for people with bad credit history. You would need to deposit some funds to the company who has issued you a secured credit card. The limit you may use is really the amount you have deposited.
A secured credit card will also help you splurge the power of the card; because you know the amount or the limit. Another thing to apply for is the Gas card and store cards. They may have only small limits but they can help repair your credit rating slowly.
The most important thing to consider when rebuilding your credit history, is that you pay all your bills on time and fully. This will help the credit history recorder that you may have made small mistake before but really have good paying habits.
By: Paul Rogers
Your credit card will be your report guide or history for future transactions that you might have such as loans. It works in that way because your credit card will keep tab on how you use your credit card. They will then collate all your transactions that you have used on your credit card to a company that collects credit report.
Late Payments
It is important to remember to avoid making bad transactions or late payments when you have used the card. This will be viewed as a negative thing in your credit report. The more negative your credit report becomes; the less chance you’ll have of getting a better loan such as mortgages or car loans.
There will be some loan companies that will give a loan to a person with bad credit history. The only catch is that their interest rates will be higher than normal due to the high level of risk they are taking. Having bad credit history might also give you problems with finding a job or an apartment.
Rebuild
So it is important to have a positive credit report. If you do not have a positive credit report, you should realize that you should rebuild your credit history. It is a difficult process and long process, but it will be worth it to get your credit repaired once again.
The first thing you’d have to do is take a look at your credit report history. There’s a free site the U.S. government offers the www.annualcreditreport.com. The website helps a person view and study his credit history.
By being able to study his or her credit report, one can now see where he or she went wrong or might have been an error. If there are any errors try to repair them. If the credit problem was really your fault, try to learn from it.
The next thing you’d do is list down all your living expenses such as mortgages, rents, food expenses, entertainment expenses, etc. Then also list the source of all your income. If you see that the expenses are lopsided, maybe a change in lifestyle will help prevent charging your credit card way too much.
Apply For A Card
The next thing you’d have to do is apply for another card. Apply for the thing that started this whole mess. You are not most likely getting a standard credit card, so apply for a secured one.
A secured credit card is easier to obtain for people with bad credit history. You would need to deposit some funds to the company who has issued you a secured credit card. The limit you may use is really the amount you have deposited.
A secured credit card will also help you splurge the power of the card; because you know the amount or the limit. Another thing to apply for is the Gas card and store cards. They may have only small limits but they can help repair your credit rating slowly.
The most important thing to consider when rebuilding your credit history, is that you pay all your bills on time and fully. This will help the credit history recorder that you may have made small mistake before but really have good paying habits.
By: Paul Rogers
Jan
31
What are some ways to build credit history without a credit card?
Filed Under Credit History | 2 Comments
I am 20 with no credit cards or credit history. I am currently paying back my school loans. Does that work? I want to know what some other ways are to help build my credit WITHOUT credit cards. I am trying to stay out of debt as much as possible. All I have to pay is my car insurance, school loans, and cell phone bills. Any tips/advice? Thanks in advance!
Jan
24
What is the best credit card for people w/o much credit history?
Filed Under Credit History | Leave a Comment
Hi, I turned 18 a while ago and I am interested in getting my first credit card. What is the best credit card for people with little/no credit history? I am looking for one WITHOUT an annual fee. The main things I buy are gasoline and food. Do you guys have any recommendations? What are your personal experiences?
Jan
16
I have a no credit history, I’ve applied for cards to get things going but have been refused because I have no history. It’s frustrating. What do I do now?
Jan
14
With a credit score of 638 and no recent credit history what is a good credit card to get?
Filed Under Credit History | 4 Comments
I need to rebuild credit history but I don’t want a ton of credit inquiries dragging my score down…
I do not currently have any debt I just need to build recent credit history.
Jan
11
In recent decades credit has become easier and easier to obtain. Credit cards, for instance, were once issued primarily to the wealthier classes in society and were used only occasionally. At the beginning of the twenty-first century, almost half of all Americans had at least one general-purpose credit card (that is, a Visa, MasterCard, American Express, or Discover card). The rise of credit as a common way to buy necessities, luxuries, and everything in between means that credit bureaus process more information and are a more vital part of the overall economy than ever before. Credit bureaus also keep track of and analyze the data derived from an ever-increasing number of loans for homes, cars, and other high-cost items.
Today, credit bureaus regularly gather information from creditors (banks; credit-card issuers; mortgage companies, which specialize in lending money to home buyers; and other businesses that extend credit to individuals and businesses) and assemble it into files on individual consumers and businesses, while updating their existing files. In addition to the data gleaned from creditors, credit files might also contain one’s employment history, previous addresses, aliases, bankruptcy filings, and evictions. Information normally stays on a credit report for seven years before being removed.
Most of the local and regional consumer credit bureaus in the Untied States are owned by or are under contract to one of the three primary consumer credit-reporting services mentioned above. Each of these three companies gathers and distributes information separately, and credit scores and reports differ slightly from bureau to bureau. Each company maintains around 200 million individual consumer credit files. Often a lender will use an average of the credit ratings provided by the three different bureaus when deciding whether or not to make a loan.
The primary commercial credit bureau in the United States is Dun and Bradstreet. D and B has credit files on more than 23 million companies in North America and on more than 100 million businesses worldwide.
In addition to providing creditors with information necessary to determine a credit applicant’s qualifications, credit bureaus make their data available for more controversial purposes. For instance, direct-mail marketers often buy information from credit bureaus in their search for potential customers. If you have ever received a letter telling you that you have been pre-approved for a particular credit card at a specific annual percentage rate, it is true; the credit-card company already knows your credit rating and has indeed already approved you for the specified card. Prospective employers and landlords sometimes purchase credit histories, too.
By: Kris Lee
Today, credit bureaus regularly gather information from creditors (banks; credit-card issuers; mortgage companies, which specialize in lending money to home buyers; and other businesses that extend credit to individuals and businesses) and assemble it into files on individual consumers and businesses, while updating their existing files. In addition to the data gleaned from creditors, credit files might also contain one’s employment history, previous addresses, aliases, bankruptcy filings, and evictions. Information normally stays on a credit report for seven years before being removed.
Most of the local and regional consumer credit bureaus in the Untied States are owned by or are under contract to one of the three primary consumer credit-reporting services mentioned above. Each of these three companies gathers and distributes information separately, and credit scores and reports differ slightly from bureau to bureau. Each company maintains around 200 million individual consumer credit files. Often a lender will use an average of the credit ratings provided by the three different bureaus when deciding whether or not to make a loan.
The primary commercial credit bureau in the United States is Dun and Bradstreet. D and B has credit files on more than 23 million companies in North America and on more than 100 million businesses worldwide.
In addition to providing creditors with information necessary to determine a credit applicant’s qualifications, credit bureaus make their data available for more controversial purposes. For instance, direct-mail marketers often buy information from credit bureaus in their search for potential customers. If you have ever received a letter telling you that you have been pre-approved for a particular credit card at a specific annual percentage rate, it is true; the credit-card company already knows your credit rating and has indeed already approved you for the specified card. Prospective employers and landlords sometimes purchase credit histories, too.
By: Kris Lee