Wednesday, July 29, 2009

When You Move to Another State, Does Your Credit Report Follow You?

Moving to another state requires you to make many administrative changes, including transferring your vehicle title and registration, getting a new driver's license, paying state taxes and, in some cases, getting a new bank account. However, one thing that does not change with an interstate move is your credit report.

National Credit Reports

    National credit bureaus manage your credit reports, so they are not dependent on which state you live in. Experian, Equifax and TransUnion maintain credit reports that compile all of your credit-related data in a file tied to your name and Social Security number. Therefore, moving to another state will not affect your credit reports at all.

Significance

    You should manage your credit responsibly now because your mistakes will follow you, even if you move to another state. If you had a bad credit score before, you will still have that negative information on your credit report after you move. On the other hand, if you worked hard to build a good credit history, you will be able to keep it in your new state.

Credit Report Components

    Credit reports contain a variety of credit-related entries that help lenders evaluate your past use of credit. Your report lists all of your credit accounts that pass along information to the bureaus, along with your payment history and account balances. Items on the public record, such as bankruptcies and court judgments, also appear on your report. One section of the credit report lists the companies that have viewed your report in the past two years. Lastly, your credit report includes your date of birth, variations on your name, your previous addresses and potentially your previous employers. The identifying information is only used to keep your file straight, and it does not affect your credit score.

International Move

    While moving to another state does not leave you with a blank slate on which to build credit again, moving to another country does. Your credit report does not follow you on an international move. Therefore, if you move to another country, you will have to start from scratch with building credit again. In some cases, a lender in another country might be able to view your previous credit report and use it to influence a lending decision, according to Bankrate. However, the information on your report cannot be transferred to your credit report in another country.

30 comments:

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