Credit Score

If you're planning to move here in the U.S., there is a very important thing that you need to know. Credit is a major factor here. It is very important that you maintain a good credit standing. 

When I moved here, I didn't have any credit history so it's almost impossible to get a loan. The banks didn't have any information about how I take care of my finances as a consumer. Good thing that my employer helped us by being our guarantor. 

If you don't have support from your employer the best thing to do is to ask a relative or a friend to be your co-maker. They will co-sign the loan documents with you. In this case, the bank can use the co-signer's credit score as a reference. In the event that you cannot fulfill your obligations, the bank will go after the co-signee. Make sure that you don't miss a payment as it would ruin or affect the co-signee's credit score.

Today I learned that my credit score went 1 point down. They said that the reason is, I paid off a long-term loan. I was so surprised! I was expecting my credit score to go even higher because I paid off a "long-term" loan. I have a very good credit standing because I'm really conscious about it and I always try to pay my bills on time. 

Banks wanted you to have loans or credits. If you don't use a credit card or for example a car payment or a mortgage, they would give you a low credit rating and give you high interest rates.

So, if you have plans of migrating to America be aware that you have to maintain a good credit standing. It is very important to know as you will need to apply for loans like car loans or mortgages.

This is life in America.