Alternative Credit Agency Lets Immigrants Bring Their Credit With Them
Nova Credit wants to make it easier for immigrants to take out loans in a foreign country and receive financial support
For someone entering a new country, it can take years to develop a similar credit score they had previously had in their country of origin. Immigrants entering the United States have this issue if they have plans to start their own business or need to take out a loan to purchase a new home. Nova Credit wants to fix that by reaching out a variety of different credit companies from other countries to develop a credit passport someone can take with them when they cross borders.
Traditionally, a credit score remains in the country it was developed in due to each country handling credit in a different way. As of right now there’s no way for someone to have their credit rating transfer it or make it universal. A person’s credit score only matters to another country when they try to move elsewhere and it looks like they’re moving to avoid having to making payments. Otherwise, all credit ratings remain in a single country. Due to credit agencies overlooking these individuals they miss out 26 million people and have to turn them away.
To try and repair this fault, for the past two years Nova Credit have reached out to credit agencies in 15 countries to develop a credit system for someone to take with them across borders. Nova Credit wants to create a credit passport a person can take with them for other agencies in a foreign country to view when deciding to give a person a loan or not. This would give immigrants a greater chance at having a better start by offering them the same financial opportunities as others around them.
The reason this wasn’t completed sooner was due to the databases credit agencies used in different countries. All of them look for the same thing, however, they go about it in distinct ways and use unique systems. A credit agency in Mexico or the United Kingdom may not have the same standards as a credit agency in the United States, making it a complicated process.
Nova Credit cultivates a variety of unique data points credit agencies usually don’t handle, like a person’s phone records, social media history, or even behavioral quizzes. Nova Credit still looks at the same financial records as the credit agencies do. They simply do not base all of the person’s history choices on those records and expand out on information typically overlooked.
Credit agencies interested in working with Nova Credit can contact them on their website.