Table of Contents
- Nova Credit collects information from credit bureaus in 13 countries and sells it to companies in the U.S. that want to offer credit products to immigrants
- The service is designed to make it easier for new U.S. immigrants to access credit cards, student loans, auto loans, cell phone services, and property rentals
- To be eligible, you must have a good or excellent credit score in your home country and no more than six months of credit history in the U.S.
- Some of its partner companies require applicants to have a U.S. Social Security number or other proof of identity from the U.S. government
- Nova Credit is still relatively new, and the company has a Trustpilot rating of 4.1 with generally positive reviews
Immigrants face many challenges when moving to the U.S. Financial barriers abound, not the least of which is the fact that they’ll start from scratch with their credit history. Traditionally, credit reports and scores don’t transfer abroad, which can make it difficult to get approved for credit cards and loans in a new country.
Nova Credit aims to change that. As a cross-border credit bureau, the company helps immigrants to the U.S. by translating their foreign credit history into a U.S.-equivalent score. This can unlock faster access to U.S. credit cards, auto loans, student loans, and even cell phone coverage.
Nova Credit’s services primarily target newcomers to the country, such as international students and professionals, but its products can help anyone who faces difficulties establishing new credit in the U.S. Here’s a detailed look at how Nova Credit works and what it offers for immigrants.
Understanding the Nova Credit Process
When you apply for Nova’s services, the company buys credit reports from foreign credit bureaus and uses them to create a “Credit Passport” that can help partnering U.S. businesses evaluate your credit history. Its “NovaScore” is roughly equivalent to a U.S. FICO score, allowing businesses to assess your creditworthiness based on U.S. standards.
By leveraging your credit history from your home country, Nova Credit can help you get faster, easier access to credit cards, auto loans, student loans, rental agreements, and mobile phone services. These products and services are often difficult to access if you have no credit history, and although a credit profile through Nova Credit isn’t exactly the same as having a domestic U.S. credit profile, it can remove significant barriers.
Although NovaCredit is authorized to operate globally and through the Fair Credit Reporting Act in the U.S., this service isn’t available for immigrants from every country. Currently, Nova Credit partners with bureaus in Australia, Brazil, Canada, the Dominican Republic, India, Kenya, Mexico, Nigeria, the Philippines, South Korea, Spain, Switzerland, and the U.K. The company also has a limited number of partner businesses in the U.S., so not all companies will accept a Nova Credit report for underwriting.
Key Features And Limitations Of Nova Credit
As a cross-border credit bureau, Nova Credit offers exciting prospects for easing the financial transition immigrants face in the U.S. To benefit from the company’s services, it’s important to understand a few key aspects of its business model and product offerings.
B2B Focus
Although Nova Credit is designed to help immigrants gain easier access to credit products, the company is a private, for-profit, B2B enterprise. Just like other credit bureaus, it sells your credit information to its partner businesses so those partners can expand their customer base to include more U.S. transplants.
Because businesses pay for (and benefit) from Nova Credit’s services, the company doesn’t charge fees to customers. However, some companies, such as property managers and landlords, may pass on their credit processing fees when you apply for a loan or lease. Also, the benefits of the service only extend as far as its business partnerships.
Consumer Financial Product Offerings
Nova Credit offers four core services to immigrants in the U.S.:
- Credit cards: The company primarily works with American Express credit cards, but you may find a few other options, depending on your country of origin.
- Auto loans: Nova Credit works with Westlake Financial to offer auto loan preapprovals with no impact on your new U.S. credit history.
- International student loans: Undergraduate and graduate college students can access international student loans through MPOWER Financing and Prodigy Finance — or even refinance up to $100,000 in foreign bank student loans.
- Cell phone service: Verizon works with Nova Credit to offer interest-free device financing and cell phone plans to immigrants.
Nova Credit also works with property managers in some areas to provide credit background and income verification for rental applications. Regardless of which service you use, the company can help you establish a local credit file for the first time without any negative effect on your new U.S. credit score.
Eligibility Criteria
Not all U.S. immigrants are eligible for Nova Credit’s services. To qualify, you’ll need a good or excellent credit score in your home country. Some credit card and lending partners also require a U.S. Social Security number or another proof of identity provided by the U.S. government.
It’s also a good idea to apply for Nova Credit soon after moving to the U.S. Because lenders will usually check your U.S. credit reports first, you cannot have a U.S. credit file that’s more than six months old.
Industry Impact and Customer Reception
Nova Credit has opened the doors for many U.S. immigrants to access credit cards, loans, and more, and many who have used the service report that it helped them get their financial footing more quickly.
The service isn’t perfect, however, and its Trustpoliot rating of 4.1 shows some negative reviews in the mix. Some users note the limited number of credit card providers and lending partners available through Nova Credit, while others note that they had to jump through more hoops than anticipated to verify their income or provide credit history from their home countries.
Nonetheless, the overwhelming response across the industry has been positive. Nova Credit is one of the first companies to break down international barriers when it comes to credit access, and it’s proven to be a valuable service for U.S. newcomers thus far. The company continues to expand its business partnerships and access to foreign credit bureaus, making its services available to more consumers every day.
Frequently Asked Questions (FAQs)
Is Nova Credit Legitimate?
Yes, Nova Credit is a legitimate consumer credit reporting agency under the Fair Credit Reporting Act. It sells credit reports from credit bureaus in 13 countries to businesses to help U.S. immigrants get approved for credit cards, student loans, and more.
How Does Nova Credit Affect An Immigrant’s Credit Score In Their Home Country?
The impact of using Nova Credit on your credit score in your home country depends on where you’re from. For instance, Nova Credit’s service results in a hard credit inquiry in Mexico, which can hurt your credit score. However, in countries like Australia, Canada, India, or the U.K., you’ll only receive a soft inquiry with no impact on your local credit score.
Can Nova Credit Help With Credit Cards And Loans Other Than American Express?
Yes, Nova Credit offers some other credit cards, as well as auto loans and student loans from other institutions. Products available to you will depend on your home country and credit score outside the U.S.
Is A Social Security Number Required To Use Nova Credit’s Services?
Nova Credit does not require a Social Security number, but some of its partner businesses do, including American Express. In some cases, you only need a U.S. passport or another proof of identity issued by the U.S. government.
How Does Nova Credit Verify Income?
Nova Credit offers income verification for tenant screening services. You can upload pay stubs or connect your bank account to use this service.
Find out more
- Credit Score Optimization – Learn how to positively influence your credit score.
- Defining a Strong Credit Score – Understand what makes a credit score robust and healthy.
- Credit Monitoring Essentials – Discover how credit monitoring can be a key to financial security.
- Roadmap to Credit Repair – Navigate the process of improving your credit with ease.
- Lowest Credit Score Challenges – Addressing the concerns of having the lowest credit score.
- Credit Repair Investment – Evaluating the cost of repairing your credit.
- Credit Report Cleanup – How to tidy up your credit report for accuracy.
- Impact of Credit Checks – Delve into how different credit checks affect your score.
