An Expats Guide to Getting Setup in The UK

Sharon  @GoodMigrations

When you’re heading to the Queen’s country you have to have your finances in order. This includes understanding how to establish and build credit as a new expat in the UK.

Your credit score is a statistical tool to predict the likelihood of you defaulting on your credit obligation. There are a dozen different credit scores built with algorithms to predict the likelihood of default on a particular type of credit (credit card, car loan, car lease, etcetera). The credit score is a tool to allow increased retail consumption.

Credit in the United Kingdom is handled by three agencies cleverly called Credit Referencing Agencies (CRA’s). TransUnion, Equifax, and Experian are the three most commonly used. Experian and Equifax give you a credit score that can range between 300 to 850 and TransUnion gives a rating between 1-5, depending on their specific criteria and system tracking.

Credit Score Table for TransUnion, Equifax and Experian Read more…

Building Credit

The Expats Guide to Building Credit in Germany

Sharon  @GoodMigrations

Having a good credit score is very important to your finances. You may not realize it now but it affects many things in your life: Your credit score can determine whether a landlord will rent to you or not; it can affect your ability to get a mobile phone or a mortgage on a house; it can even prevent a bank from loaning you money to buy everyday things (which means no credit cards since those are basically loans). So what do you do as an expat in a new country with no credit?

Our guide below will help outline the steps needed to establish yourself in Germany as an expat so you can begin building credit (and test your pronunciation abilities because German government terminology is not known for its brevity).

Let’s start with a brief education of the German credit system as it can be confusing for many.

The Schufa

Germany’s sophisticated credit system is called the SCHUFA (shorthand for Schutzgemeinschaft für Allgemeine Kreditsicherung).  As a resident of Germany, this system immediately begins collecting data on your financial history in order to calculate a score. This score will then stay with you for the duration of your residency in Germany.

The Schufa is based on a 100-point scale and gets “dinged” when you are delinquent on payments.  Beyond that, exactly how this score is calculated continues to be a mystery. We do know that scores around 90 are considered positive and should not negatively impact you with lenders.

Every resident is entitled to one free copy of their report per year. Should you need to request an additional copy the Meineschufa website is a great resource to check out.
Meineschufa- Schufa

Building credit in a new country takes time. So be diligent about paying bills in full on time.
Read more…

Building Credit in the United States – An Expats Guide

Michael Boateng @GoodMigrations

What’s all this talk about Credit?

There are so many things to think about when getting ready to move to the United States:  where to live, how to get there, making friends and what you’ll need to buy. Have you thought about how you will get a local cell phone or open up a U.S. bank account? These are just a couple of things that require you to have credit.

When moving to the US, learning about the credit system can eat away at the excitement of your amazing journey. We get it: it’s a boring and confusing topic. While learning how to get credit, you may experience the following side effects: anger, fear, hope, and calm. If it makes you feel better, even many individuals born in the States are still confused about their own system.
wallet with credit cards for GoodMigrations

What is Credit?

Your Credit Score is a statistical tool to predict the likelihood of you defaulting on your credit obligation. There are a dozen different Credit Scores built with algorithms to predict the likelihood of default on a particular type of credit (credit card, car loan, car lease, etcetera). The Credit Score is a tool to allow increased retail consumption.

It allows you to rent an apartment, get credit cards, and purchase a mobile phone by showing that you’ve borrowed before and paid it back consistently. Read more…

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