How to use U.K. credit history in the U.S. | Nova Credit (2024)

Nova Credit is a cross-border credit bureau that allows newcomers to apply for U.S. credit cards, phone plans, and loans using their foreign credit history.

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The United States is one of the most popular destinations for immigrants from the United Kingdom. While embarking on a journey across the pond, be prepared to deal with many hurdles that come with moving to a new country. One of the biggest of these challenges is accessing credit in the U.S. as a Brit.

In the past, different credit reporting standards and technical challenges made it difficult to share credit information across international borders, even when the credit reporting agencies operate in both countries. Today, it’s possible to use your U.K. credit history to apply for several products and services like credit cards, phone plans, and more in the U.S. This article will explain how.

Why is having a good U.S. credit score important?

Having a good credit history can play a critical role in helping you live a comfortable life as a newcomer in the U.S. Having access to credit in a new country isn’t just about getting a loan; it also has a direct impact on your ability to obtain financial products such as credit cards and bank accounts as well as to access essential services such as housing and phone plans.

Many newcomers today face challenges navigating the restrictions that lenders and creditors (including cell phone and internet providers) have in accepting a U.K. credit history. Because these credit institutions traditionally had no way to measure the financial stability of new clients from abroad, newcomers from countries like the U.K. often faced a restricted set of product choices or had to pay high interest rates and large sums for security deposits.

Before we get into how to use your U.K credit history in the U.S., it’s important to understand the differences in how credit reporting works in both countries—so you have an idea on what to expect when you arrive in the States.

Credit reporting: U.S. vs U.K.

While the major credit bureaus in the U.K. and the U.S. are the same — Equifax, Experian and TransUnion — your U.K. credit history does not automatically transfer to the U.S. when you move between these two countries.

Here’s a rundown of the main differences between the U.K. and U.S. credit reporting systems:

1. Identification by lenders and credit bureaus

In the U.K., people are identified by lenders and credit bureaus through the information from their electoral register, which contains personal information including name, address, date of birth and an electoral number.

In contrast, people in the U.S. don't receive any direct financial benefit from registering to vote. Instead, they are identified by lenders and credit bureaus through their Social Security Number (SSN), a nine-digit number issued to U.S. citizens and residents.

2. How lenders use your credit score

In the U.K., each lender has their own separate scoring model depending on their criteria and what they’re looking for in a customer. While British lenders can use the scores provided by the credit bureaus, they primarily help educate the consumer about their credit rather than use it to evaluate creditworthiness.

In the U.S., lenders typically pull your credit score from credit bureaus to evaluate your application for credit. Most U.S. lenders and creditors use some version of either the FICO score or VantageScore models. While your credit score is not the only consideration for assessing your creditworthiness, it has a major impact on the success of your application for new products and services.

Building U.S. credit with your U.K. credit history

If you’ve recently moved to the U.S., you may be able to use your British credit history to apply for U.S. credit products using Nova Credit. The company works with top global consumer credit bureaus around the world, helping British immigrants use their foreign credit with lenders in the U.S.

That means that the good credit history you’ve worked so hard to build up in the U.K. can now be used to improve your chances of being approved for products and services like credit cards, phone plans, apartments, and loans in the U.S. Once approved, you can begin to build a U.S. credit history by responsibly managing your new U.S. credit accounts.

Use your U.K. credit history to apply for U.S. credit cards and more

In partnership with Equifax UK, Nova Credit can translate your U.S. credit file into a U.S.-equivalent score to be used by U.S. lenders.

This will help you apply for the following products with your U.K. credit history:

• Credit cards - Apply for any American Express credit card using your U.K. credit history. Browse card options, and apply online.

• Phone plans - Use your U.K. credit history to apply for a postpaid phone plan with Verizon and qualify to finance a smartphone with 0% interest plans for up to 36 months.

• Student loans - Apply for a no-cosigner student loan to study in the U.S. through MPOWER or Prodigy Finance, for both grad and undergrad programs.

Using Nova Credit is entirely free for immigrants to use. It is a powerful way to help you get started with your first credit products in the U.S. using your U.K credit history, so you can then start building your U.S. credit profile and credit score.

In addition to the U.K., Nova Credit currently connects to credit bureaus in Australia, Brazil, Canada, Dominican Republic, India, Kenya, Mexico, Nigeria, Philippines, South Korea, Spain, Switzerland, and the U.K.

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How to use your foreign credit history to get credit in the U.S.