Expats continue to face a challenge getting credit when they move abroad. This can make the simplest financial services, such as getting a bank account, very difficult and source of great frustration for a lot of people when they move abroad. A recent article about expats and credit on WSJ.com re-examines the issues involved:
U.S. lenders rely heavily on credit reports and scores, more so than in other countries, relocation experts say. That reliance can pose challenges for returning expatriates and foreign nationals whose companies bring them to the U.S.
“Even though we are in a global marketplace, the credit marketplace is still very segmented by country,” with different rules and standards, says Maxine Sweet, vice president of public education at credit bureau Experian.
That means your credit experience in one country isn’t shared when you move to another country. The result: Even senior foreign nationals on assignment to the U.S. often “cannot open a bank account or get a line of credit,” says Ed Hannibal, North American mobility leader at consulting firm Mercer.
Expat finance will always be a critical aspect of expat life, and it’s one that should be addressed before moving overseas. Too many expats assume that financial services will be just like they were in their country, and that is just not the case.