Nova Credit Overview: A Startup that Imports Credit History for Immigrants
Did you recently move to the U.S. and you are struggling to get credit offers? Is your lack of credit history keeping you from getting the loans you need? U.S. banks and other traditional lenders are making it hard for foreign nationals to get good credit offers here.
But, we may have just the answer you need. Nova Credit is here to help foreign nationals like yourself to get better access to credit in the U.S.
What is Nova Credit?
Nova Credit developed a platform that helps you to migrate your existing credit history in your home country to the U.S. It is their mission to help promote the flow of people from one country to another by translating and migrate information internationally. They will obviously adhere to the laws of the different countries they engage within their pursuit to help people move their personal and credit information from one country to another. But their aim is to break barriers nonetheless.
Nova Credit started as a research project at Stanford University and the company was eventually founded in 2015. Up until now, they have created a global platform for identity mobility to help immigrants get better access to credit in foreign countries.
How Nova Credit Works?
Nova credit supplies something called a Credit Passport®. You open a profile with them by completing an application questionnaire. You submit the necessary information on the platform so that Nova Credit can identify and extract your information from your home country. They use your information and pull your current credit history from your home country.
You can use your Credit Passport® and the information it provides to improve your applications when you apply for loans and apartments in the U.S. The information included in your Credit Passport® is like a credit history. Unfortunately, many U.S. banks and lenders don’t yet accept it as an official credit history yet.
Nova Credit is free for immigrants and expats. They make their money by charging the banks and property managers they partner with. They help those businesses to get more customers and in exchange charge them a small fee.
Nova Credit also has agreements with credit bureaus in many different countries. They ask for your permission to extract your current credit history from one of the credit bureaus in your country of residency. They will then translate and migrate that information to the U.S. to help you gain better credit offers here.
Please note, your global credit history won’t form part of your U.S. credit history yet. A Credit Passport® will only help you to get a form of credit in the U.S. by providing information on your credit history. It will still be important to spend time building your credit report here in the U.S. Most traditional lenders and banks only consider credit reports submitted by the U.S. branches of Equifax, Experian, and TransUnion. These credit bureaus will only record the financial and credit history of the dealings you have in America.
Pros and Cons of Nova Credit
Nova Credit is helping thousands of people through its groundbreaking product. It has some great benefits for their customers. But, it is still a relatively young company. They have, unfortunately, not had much time to grow every part of their business which means they are not quite ready to serve every immigrant or expat living in the U.S. yet.
Let’s look at the pros and cons Nova currently has to offer.
Pros of Nova Credit
- Import foreign credit history into the U.S. – Nova credit helps you to bring your credit history to the U.S. This serves as supporting documentation when you apply for credit in the U.S. You don’t have to go through the administrative burden of getting all your info here. They will migrate your credit history for you.
- Gets immigrants access to U.S. credit years faster – You don’t have to spend a couple of years building a U.S. credit history to get your first loan. Nova Credit helps to shorten that time period (in some cases even with a few years). Faster access to credit helps you to start building your U.S. credit report faster. This might just be the head start you need to grow your wealth.
- No Social Security Number required – Nova Credit can help you to get access to credit without a Social Security Number (SSN). Nova Credit does not require you to have a SSN to use their product. They are able to migrate your information from your home country to the U.S. without it. This means you can start building your credit history in the U.S. without having an SSN.
Cons of Nova Credit
- Limited partners – Nova Credit haven’t had much time to form partnerships with a big bunch of companies and institutions yet. They only have a limited amount of partners who accept the Credit Passport® and the information it provides about your foreign credit history. In time they will have grown and created new partnerships with more companies. They currently have partnerships with Canvas, MPOWER, and Yardi.
- Only works for immigrants from select countries – Nova Credit currently only helps people from Australia, Brazil, Canada, Great Britain, India, South Korea, and Mexico to migrate their credit histories to the U.S. They are busy testing their offering to people from China and Nigeria as well. Soon they will also be able to migrate their information. Unfortunately, Nova Credit doesn’t yet offer their product to people from other countries.
- Sometimes requires a hard credit pull (to check rates) – In some cases, Nova Credit needs to log a hard credit pull on your credit history to check your rates for a credit deal. A hard credit check has a small negative impact on your credit score. A lower credit score leads to more expensive and higher interest rates offered to you so make sure you think twice if this is the case for you.
- Only useful for those with existing foreign credit histories – Nova Credit can’t take your information and create a credit history from it. They don’t serve the purpose of a credit bureau. They will only be useful to you if you already have a proper credit history in your home country. They can only work with the credit history you have built up at the credit bureaus in your country of residency. You can unfortunately not use this product to build a credit history from scratch.
What About Immigrants Without Foreign Credit History?
What do you do if you need a loan but you don’t have a credit history at all? Not even in your home country! Will you still be able to get a loan in the U.S.?
The good news is yes, you can! Stilt offers personal loans to immigrants and foreign nationals like yourself. There are simple eligibility criteria you need to fulfill to be able to apply for a personal loan. But, you don’t need a credit history to be eligible for a loan here.
With Stilt, personal loans are unsecured meaning you don’t have to provide security for the loan to serve as collateral. You can apply for a loan between $1,000 and $25,000 with interest rates starting at 7.99% APR (Annual Percentage Rate).
The interest rate offered to you will depend on the strength of your application. Stronger applications get lower interest rates. A soft credit pull is performed to verify your information so it won’t impact your credit score at all.
Here’s how it works.
After you have confirmed your eligibility you can apply online for the loan amount you need. Supply as much supportive documentation possible. Your interest rate depends on your application. Please supply any additional information if requested in a follow-up call.
Receive Your Loan Offer
You will receive feedback on your application within 24 hours of submitting. If you are approved, the next step is you will receive your loan offer and a promissory note. Please sign and return the promissory note if you want to accept the loan offer.
The loan will reflect in your bank account within 2-3 business days. Set up your payment method online. An autopay option will help you to pay on time every month. It will also help you to build a stronger credit history in the U.S.
You don’t have to struggle without credit options in the U.S. Immigrants and foreign nationals can use Nova Credit to migrate their credit histories to America. Not only will it help you to gain better access to credit, but it will also help to lower the interest rates offered to you and it will shorten the waiting period you need to complete when applying for credit in the U.S. And if you don’t have any credit history, you can still gain access to credit in the U.S.
Apply at Stilt today for the personal loan you need. Repaying your personal loan from Stilt will also help you to build a credit history in the U.S.