A high credit score gives you so much flexibility around your personal finances and if you are planning to leave the US to live abroad, it is something which is worth focusing on. A great credit score gives you the chance to secure finance with ease, it gives you more comfort around managing your finances back home and it provides you with options should you choose to move back to the States.
It is important that both before you go and after you leave, that your credit score is something you focus on, and here is how you can make sure that it is best protected.
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For those who have already left the US, it is important that you realize the impact which transferring money back home can have on your credit score. For example there are some money transfer services which only allow you to use your credit card, which can in fact damage your score. This is owing to the cash advance fees which you will incur when using this method to send money. Using an international money transfer service like Ria will enable you to use your debit card or checking account, thus protecting your score.
One of the most damaging aspects to your credit score is not paying off your debts on time. No matter if this is your mortgage, credit card or any hire purchase agreements, it is critical that you pay the right amount at the right time. If you have moved abroad then making these payments back home can be easy to forget, so ensure that you have a plan in place to manage your monthly debt repayments.
Even if you are happy with the credit limits which you currently have, consider increasing them to better your credit score. The credit score is calculated based on what you could borrow versus what you have, which is why an increased limit can help you out. Speak with your bank or credit card provider and try and increase both your credit limit or your overdraft facility. Remember that just because you have increased it, you should still focus on keeping your borrowing to a minimum.
Checking Your Report
Credit report errors happen more than you may realize, which is exactly why you need to be on top of what your credit report says. The moment that you see something which is incorrect, be sure to dispute the errors in order to protect your score.
Become an Authorized User
If your spouse or partner has a good quality credit report be sure to get added to their accounts as an authorized user. Even if you have no plans to use their credit, making this change can in fact boost your own credit score. This is an easy change to make and something which can have a positive impact on your overall credit report.
Simply because you are not going to be in the country, doesn’t mean that you should ignore your credit score back home.