NRI: Improve Your Credit Score in the US
The NRI and PIO (Person of Indian origin) population across the world is estimated at 30 million. After China, India has the largest number of people working abroad with most of them opting for the US. Most NRIs face the problem of getting loans in the US as their credit history in India is not taken into account there. Each country has its own way of calculating the credit score and, at present, there is no way to transfer credit history between two countries.
Ways to Improve Your Credit Score
Your credit score determines your creditworthiness to institutions that offer loans. NRIs living in the US have to resort to different strategies to improve their credit score quickly. Here are some of the essential steps that are to be followed:
• Pay your bills on time: Make sure that all your bills, from telephone to electricity, are on your name. Pay them on time to establish a solid base for your credit history.
• Open a savings account: Having a saving account establishes your credit worth to the lender. Not having one is equivalent to not having any credit history at all.
• Opt for short term loans like car title loans: Paying your car title loan instalments on time assures the lender of your credibility in paying back any loan. A car title loan is easy to get and has a shorter repayment cycle.
• Apply for a credit card: Once you have a strong case in terms of a proper job and residence history, apply for a credit card. Pay your credit instalments on time. A good credit history would make you eligible for bigger loans.
Your credit score is your most valuable possession when it comes to negotiating terms and interest rates with lenders. For NRIs it is a must to start off on a good note. Follow these steps religiously to be in the good books of lenders.