How to Maintain Your U.S. Credit Score While Living Abroad
Living abroad can be an exciting adventure, but it also comes with its own set of challenges, especially when it comes to maintaining your U.S. credit score. While different countries have their own credit scoring systems, your U.S. credit score remains crucial if you plan to return to the United States. A solid credit score can make it easier to rent or buy a home, set up utilities, qualify for loans and credit lines, and even land a job. Here are some essential steps to protect your U.S. credit score while living overseas.
Maintain a U.S. Address
One of the best ways to keep your U.S. credit score intact is to continue using your U.S. credit cards. To do this, you need a U.S. address. You can ask a relative or close friend if you can use their address for your financial accounts. If that’s not an option, consider using a paid mail forwarding service. These services cater to digital nomads and expats, providing a U.S. mail address that’s not a post office box. Some companies will physically ship your mail to your foreign address, while others scan and send digital copies. Once you have a U.S. address, update all your financial accounts accordingly.
Switch to Online Statements
Receiving your bills digitally is ideal when living abroad. This not only reduces the cost and hassle of receiving snail mail overseas but also helps protect you from identity theft. Criminals can steal mail and use your personal information to commit fraud. By switching to e-statements and online account alerts, you reduce the risk of physical mail getting into the wrong hands and can manage your financial life from anywhere in the world.
Keep Your Credit Cards Open
Regular, on-time payments for bills and debts are crucial for maintaining your U.S. credit score. Keep your U.S. credit cards open and active by setting up autopay for recurring bills like mobile phone service. This ensures your card has regular activity and that your bill is never late. You can also use the card for subscriptions like Netflix or Spotify. If you visit the U.S. periodically, using the card and making timely payments will help keep your credit accounts active. You can also use your card for regular expenses overseas if it’s widely accepted, but avoid cards with foreign transaction fees.
Maintain a U.S. Bank Account
Opening a local checking account in another country can vary in difficulty. An alternative is to use an international product like Wise, which allows you to open multiple checking accounts in different currencies and transfer money between them at favorable exchange rates. Keeping your U.S. checking account open is also beneficial. It streamlines the payment of your credit card bills and other debts like mortgages or student loans. It also makes life easier if you receive checks from U.S. residents or work for U.S. companies. If you plan to withdraw cash abroad, use ATMs that are part of your bank’s network to avoid hefty fees.
Monitor Your Accounts for Signs of Fraud
Security standards vary globally, and your sensitive data might be at risk. For example, your card number could be stolen at a small business, or a hacker could intercept your login credentials on a public WiFi network. Stay proactive by turning on alerts for your credit card and bank statements. Regularly log in to review recent transactions for any suspicious activity. For added protection, sign up for free credit monitoring with Experian. You’ll receive alerts if changes are detected in your credit report, helping you head off unauthorized activity.
Secure Your Credit Report
If you won’t be applying for new U.S. credit or need a credit check soon, consider adding a credit freeze to your credit reports. A credit freeze limits access to your credit report and score, adding an extra layer of protection. If a criminal tries to open a credit card account in your name, the card issuer will see the freeze in place. You can lift the freeze if you need a credit check, but you’ll have to contact each credit bureau individually to add and lift the freeze.
The Bottom Line
Even if you don’t think you’ll need your U.S. credit reports or scores for a while, it’s still a good idea to take steps to protect them from fraud. Check your credit report and score for free with Experian at any time while you’re abroad to ensure you’re on the right track for your return.
At O1ne Mortgage, we understand the importance of maintaining a good credit score, whether you’re in the U.S. or abroad. If you have any questions or need assistance with your mortgage needs, don’t hesitate to call us at 213-732-3074. We’re here to help you navigate your financial journey with ease.
