Many people who intend to move to the United States or even those who have already taken up residence, be aware, your positive credit history will not travel with you. Because, in general, credit history is not transferred from one country to another. It is important to create new credit in the United States to qualify for loans, financing, credit cards and other business activities that require a good credit score.

What is credit?

“Credit” is when a party, usually a bank or lending institution, provides the other party with money or resources without immediate repayment. Credit is usually provided with interest rates and / or other contract charges. A lender will analyze the creditworthiness of potential borrowers before extending a line of credit.

In the United States, the “credit score” is the measure of credit score, calculated by three private agencies; Equifax, Experian and TransUnion. Lenders report a borrower’s activities to these agencies, in turn, assigning borrowers a credit score that varies by debt and financial activity.

A positive credit history is established when a borrower maintains a history of paying off debts on time. On the other hand, a borrower’s credit history will be adversely affected by missing or overdue payments, closed accounts and overuse of credit.