Relocating to a new country is a major life changeānew rules, new routines, and yes, a brand new financial identity. One of the biggest surprises for many Indian expats is discovering that your credit score doesnāt travel with you.
Even if you had a great credit history in India, youāll often need to start from scratch in your new country. But donāt worryārebuilding your credit score is absolutely doable with the right strategy and patience.
Hereās a step-by-step guide on how to rebuild your credit score after moving to a new country.
A credit score is a number that represents your creditworthinessāi.e., how likely you are to repay borrowed money. It affects:
In countries like the USA, UK, Canada, or Australia, your credit score is crucial for day-to-day financial life.
Start by setting up a local checking/current account with a reputed bank. This is your first step toward financial integration.
š¦ Choose a bank with services for newcomersāsome even offer starter credit cards.
If you're new to the country and donāt have a credit history, banks may offer a secured credit card. You deposit an amount (say $300), and that becomes your credit limit.
š” Use it for small purchases and pay off the full balance every month to build a positive payment history.
Some utility companies and mobile providers report payments to credit bureaus. Paying your bills on time can contribute positively to your credit file.
ā ļø Avoid missed or late paymentsāthey show up on your credit report.
In countries like the U.S., UK, and Canada, you can use rent reporting services to add your monthly rent payments to your credit file.
š This is especially helpful if youāre not using credit cards yet but want to show reliable payment behavior.
Ask a trusted friend or family member in your new country to add you as an authorized user on their credit card. Their good credit behavior will help boost your score.
āļø Ensure they have a clean history and low credit utilization.
After 3ā6 months of on-time payments, you may become eligible for:
š” Keep credit usage under 30% of your limit to maintain a healthy credit profile.
Sign up for a free credit score monitoring service like:
Track your progress and watch for errors in your report.
Typically, youāll start to see a credit score within 3ā6 months of opening a credit account and using it responsibly. A good score can take 12ā18 months to build.
Be patientāyour financial reputation is being rebuilt from the ground up.
If you still have active accounts in India (loans, credit cards), make sure you:
š¢ Your Indian credit score can still be useful for NRI loans or property investments back home.
Moving abroad may reset your credit score, but itās also an opportunity to build strong financial habits from day one. With the right steps and discipline, youāll be able to access better financial products, get favorable rates, and feel confident in your new country.
Your credit score is not just a numberāitās a reflection of trust. And with time, you'll earn it.
š” Need help navigating finance as an Indian abroad?
Visit AbroadSaathi.com for expat credit tools, NRI banking tips, and relocation supportāall in one place.
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