5 Things to Know About Nova Credit

Making a big move to the U.S. can already be a challenge for newcomers, but it’s even more difficult when you can’t get credit. It’s been a longtime obstacle for immigrants up until recent years, and Nova Credit is one of the financial technology companies attempting to clear the path.

Nova Credit offers immigrants from certain countries a chance to use their credit history from their home country to apply for credit cards or an auto loan in the U.S. The company can translate data from your country of origin to a U.S.-equivalent score and report, which can be used to determine eligibility for different financial products.

It can be useful, especially for those who need to buy new furniture, appliances or any number of essentials for their move. Having access to credit can make it easier to plant roots in a new country, whether you need a car to get to your job or a credit card to buy some time while you pay off must-needed purchases.

Here’s what to know about Nova Credit.

1. Nova Credit shares your credit history

Nova Credit can share your credit history from abroad with certain U.S.-based lenders. It translates your credit report into a Credit Passport that lenders can use to evaluate your creditworthiness for some types of credit cards or an auto loan. Nova Credit currently offers a Credit Passport only for newcomers from certain countries, but availability in your region depends on individual creditors from eligible countries.

The financial products you can qualify for also depend on your country of origin. Every time you consent to share your Credit Passport to qualify for a product, the lender pays the company for that information.

2. You may potentially qualify for AmEx credit cards

Applicants can potentially qualify for credit cards issued by American Express and other companies. Credit cards for credit beginners don’t typically pack healthy rewards or introductory offers, but qualifying for an American Express card with Nova Credit can give you that access. For AmEx cards, you may complete an application through AmEx’s website.

The application process for an American Express credit card is similar to that of most credit cards, but you’ll have to check a box confirming that you have a credit history in a different country to initiate the Credit Passport process by Nova Credit. Pulling your credit report from another country is typically a soft inquiry with no impact on your credit score, but exceptions do exist. If you’re from Brazil, Kenya, Mexico or Nigeria, for example, there will be a temporary impact on your credit score in your home country. In the U.S., applying for a financial product will not temporarily impact your credit score if you’ve not established a credit file in the country.

3. You may also qualify for other products

Nova Credit partners with other companies to allow you to use your foreign credit history to apply for certain products. For instance, you may use your foreign credit history to apply for device financing and phone plans through Verizon. Nova also partners with Westlake Financial to provide access to auto loans in the United States for those who can qualify from select countries. With its partnership with MPOWER and Prodigy Finance, it also helps provide eligible international students with student loans.

4. Proof of identity may be required

Depending on the creditor's policies, you may need to provide proof of identity, a Social Security number or Individual Tax Identification Number. For instance, if you’re applying for an AmEx card, you might be able to verify your U.S. home address through a bank account, driver’s license, utility bill, phone bill or other official documents like government-issued identification. You may also have to answer questions about your foreign credit history.

5. A U.S. credit file could disqualify an international credit report

It’s possible that you may have established a credit file if you opened a credit account elsewhere. If you’ve already begun establishing credit during your short time in the U.S., it could get in the way of being able to use your foreign credit history, depending on the creditor and product. If you’re unsure of where your credit history stands, you can visit AnnualCreditReport.com to check whether you have a U.S. credit report for free.