Buzz
Building and managing a solid credit history is already a challenge. But if you move overseas after establishing a strong credit profile, it becomes even more difficult to keep your credit in good standing.
One Mytour reader experienced this firsthand. As a U.S. citizen living abroad, he was using his company’s U.S. headquarters as his official address.
When his U.S. credit card was flagged for potential fraud, the card issuer requested that he submit a driver’s license or state ID to lift the block. However, this expat did not have these documents available. Although he had a passport and an active checking account with the same bank, his repeated attempts to verify his identity were unsuccessful. Frustrated, he eventually instructed the bank to cancel the card.
But his troubles didn’t stop there.
After closing the account, his credit score plummeted by 60 points, prompting him to apply for a new U.S.-based credit card. However, his application was rejected due to his lack of a U.S. residential address and a local work contract when he visited the bank in his current location. This left him without any credit cards, only debit.
And debit cards offer limited help when it comes to your financial health. “That doesn’t assist my U.S. credit score,” he expressed. “I’m likely not the only one facing this, and it shows how easy it is to end up in a financial limbo,” he wrote.
With the increasing number of digital nomads, this email made me wonder about how to safeguard your credit when leaving the United States. I reached out to Anthony Davenport, CEO of Regal Credit Management and author of “Your Score,” to hear his advice for clients on the move.
Although Davenport’s advice doesn’t help our reader overseas, it could prove valuable if you plan an extended stay abroad.
Place a freeze on your credit
Davenport's top recommendation is to lock your credit profile with all three major credit bureaus. This step ensures no one can access or negatively impact your credit while you’re out of the country.
We’ve put together a guide to assist you with this process, and it’s a wise precaution, no matter what your travel plans may be.
Keep a U.S. address on record
Davenport emphasized that securing a U.S. residential mailing address is a crucial step to take before leaving the country. While a post office box can serve as a secondary address for banking correspondence, most credit card companies won’t allow it as your primary address.
The simple solution is to rely on a family member or trusted friend to collect your mail and notify you if anything important arrives.
If you don’t have anyone who can act as your U.S. mailbox, consider subscribing to a mail-scanning service. These are often advertised as mailbox rentals or 'digital mailboxes,' but the key is that your mail is sent to a physical address, not a P.O. box.
Digital mailbox services typically offer features like scanning the exterior of envelopes, opening and scanning contents, forwarding mail or packages, and even depositing checks you receive by mail. Pricing starts at around $10 per month for basic services (envelope scanning and opening/scanning a few pieces of mail), with extra charges for additional mail scanning.
You’ll need to complete USPS form 1583 to authorize mail delivery through an agent. The service provider will guide you through this and any other required paperwork.
Keep yourself engaged
The final step is to ensure you continue using your U.S. credit cards so they don't close due to inactivity.
'Set up autopay for a small recurring charge' on your U.S. credit card, then arrange automatic payments with your card issuer to ensure the charge is fully paid each month, advised Davenport.
'This will help keep their credit in top shape for when they return to the U.S.,' he said. 'Otherwise, you might need to rebuild your credit from the ground up if you decide to come back.'
