Expat Tip #1: Credit Cards
With my move to London looming just over the horizon, I’ve started getting my finances in order in preparation. I’ve discovered a few tidbits that might help a new expat and thought I’d post ‘em for your viewing pleasure:
Since 16, I’ve been a model credit user. I’ve financed four cars (and sold each one before ever paying the loans), purchased a condo (now occupied by my ex-girlfriend, who just got married), and maxed out a few credit cards, all without ever making a late payment. Despite some lamentable financial decisions, I’ve never made a bad move credit wise.
Unfortunately, my 780 credit rating in America is about as useful as a chocolate teapot in the UK. NOTHING in my credit history transfers. As soon as my visa is stamped and I become an office resident of the UK, I’ll be persona non-grata, just another one of the plebes without credit. Luckily I still have access to my Yankee plastic!
I’ve done some research on the best way to leverage my US credit while I’m in the UK:
The first thing I did was cancel my useless accounts. First on the list is my Discover card since merchants in the UK don’t accept Discover. This was the easiest thing for my move yet! This is aces for anyone that wants to cancel a credit account, just tell them you’re moving out of the country. No questions, no transfer to a supervisor offering lower APR. “Thanks for your business Mr. Harmon” — end of story.
My next concern was international transaction fees. After some intense web-smithing I determined that Capital One doesn’t charge this fee! In fact, Capital One eats a small percentage of the transaction because they still have to pay Mastercard. One online application later and I’m all set up to suck the teat of another credit card company at my leisure. Spiffy!
Another concern of mine is preserving my pristine credit record. All I need is some jackhole to steal my identity while I’m in Europe longterm. It seems like every day another moron gets his/her unencrypted PC stolen at Starbucks with 50,000 social security numbers on it. One of the options I’m looking at is freezing my credit report. What this basically does is prevent any new credit queries to occur without lifting the freeze, effectively stopping people from opening up a GAP charge card with your name on it. New laws in all 50 states let you do this with the three major credit bureaus, TransUnion, Experian and Equifax for about $10 (it’s free if you’ve had you are a victim of ID theft). I’m planning on doing this before I leave for peace of mind. When/if I return, all it takes is a certified letter to these companies to re-open my reports.
There you have it. A few things you can do to cancel accounts, save some money and hopefully prevent potential identity theft. I’ll be back soon with more tips as soon as I find them out or learn them the hard way…
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January 4th, 2008 at 6:08 am
[...] Expat escapades - Will Grant do well in his new homeland? I’m sure he will, but I’m interested to read about his adventures and how he will work through the transition from colonial to redcoat! [...]