Do UK student loans affect US credit score?
#1
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Joined: Nov 2017
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Do UK student loans affect US credit score?
Hi I'm new to this forum so hope this is in the right place.
I will be moving to the USA from the UK in 2 years once my green card application has been approved. I finished university last year and have a student loan debt of £60000+. I'm wondering if the UK student debt will affect my US credit score?
I can't find any information anywhere and I want to start paying more, if it affects my credit rating.
I will be moving to the USA from the UK in 2 years once my green card application has been approved. I finished university last year and have a student loan debt of £60000+. I'm wondering if the UK student debt will affect my US credit score?
I can't find any information anywhere and I want to start paying more, if it affects my credit rating.
#2
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Joined: Aug 2013
Location: Athens GA
Posts: 2,133
Re: Do UK student loans affect US credit score?
Hi I'm new to this forum so hope this is in the right place.
I will be moving to the USA from the UK in 2 years once my green card application has been approved. I finished university last year and have a student loan debt of £60000+. I'm wondering if the UK student debt will affect my US credit score?
I can't find any information anywhere and I want to start paying more, if it affects my credit rating.
I will be moving to the USA from the UK in 2 years once my green card application has been approved. I finished university last year and have a student loan debt of £60000+. I'm wondering if the UK student debt will affect my US credit score?
I can't find any information anywhere and I want to start paying more, if it affects my credit rating.
#3
Re: Do UK student loans affect US credit score?
Hi and welcome to the forum.
Couple things:
You don't have a green card application. Instead it sounds like an immigrant visa petition/application? Are you married to a US citizen? Or have some other close family connection?
Regarding your student loan - you still have an obligation to pay even if you're working abroad! Don't free load and get your repayments going.
It won't help your US credit score positively, but if your debt is sold to a US collections company you can sure as hell expect they will be knocking over a debt that large. And that will definitely negatively affect it!
Couple things:
You don't have a green card application. Instead it sounds like an immigrant visa petition/application? Are you married to a US citizen? Or have some other close family connection?
Regarding your student loan - you still have an obligation to pay even if you're working abroad! Don't free load and get your repayments going.
It won't help your US credit score positively, but if your debt is sold to a US collections company you can sure as hell expect they will be knocking over a debt that large. And that will definitely negatively affect it!
#4
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Joined: Jun 2016
Posts: 502
Re: Do UK student loans affect US credit score?
Hi I'm new to this forum so hope this is in the right place.
I will be moving to the USA from the UK in 2 years once my green card application has been approved. I finished university last year and have a student loan debt of £60000+. I'm wondering if the UK student debt will affect my US credit score?
I can't find any information anywhere and I want to start paying more, if it affects my credit rating.
I will be moving to the USA from the UK in 2 years once my green card application has been approved. I finished university last year and have a student loan debt of £60000+. I'm wondering if the UK student debt will affect my US credit score?
I can't find any information anywhere and I want to start paying more, if it affects my credit rating.
but bear in mind that when the Student Loans Company work out your student loan payments they just do a straight currency conversion from your US salary to Sterling.
So your student loan repayments can often feel quite high compared to what you'd pay in the UK.
#5
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Re: Do UK student loans affect US credit score?
Thank you for all of your replies!
My mum currently lives in the US and has a green card and I think I have a I-130 form filled? This is all new to me so I'm not completely sure on all of the correct wording.
To be clear I am not trying to get out of repaying my student loan at all! I just want to make sure that it will not affect my credit score once I get into the US.
As the debt is just a high figure it would take many years before I would be able to pay it off and the advice in the UK is to pay as minimum as possible as the debt will get wiped off in 30 years.
My mum currently lives in the US and has a green card and I think I have a I-130 form filled? This is all new to me so I'm not completely sure on all of the correct wording.
To be clear I am not trying to get out of repaying my student loan at all! I just want to make sure that it will not affect my credit score once I get into the US.
As the debt is just a high figure it would take many years before I would be able to pay it off and the advice in the UK is to pay as minimum as possible as the debt will get wiped off in 30 years.
#6
Re: Do UK student loans affect US credit score?
Hi, kirstiep!
I'm in a similar boat. I'm moving to the U.S. this month - I graduated this past July from a UK university, with all the bog-standard student debt. When you move overseas, there is a form you need to fill in and send to Student Finance England - you can read about this here:
Plan 1: Student Loan Repayment - Plan 1 - Repaying from overseas
Or:
Plan 2: Student Loan Repayment - Plan 2 - Repaying from overseas
As per usual, they will work out your repayments based on your plan (the threshold varies between Plan 1 and Plan 2, as you likely know). I've also read something (though can't think of the source right now, sorry) that echos what GeneralPowerpoint points out above - the amounts we'll repay from the United States will likely be higher than the amounts we'd repay if we remained in the UK. I don't recall the reason for this being due to currency conversion (I thought it had something to do with varying thresholds dependant upon the country of residence?), but I may be wrong. Either way, the important thing is to keep Student Finance in the loop.
There seems to be a huge misconception about Student Loans being written off if you move abroad - one of the questions I get asked most frequently by people newly learning of my circumstances, is if I ever have to repay my student debt. Absolutely, I do! For several thousand reasons. But primarily because the last thing I'd want is to have Student Finance breathing down my neck a few years from now, and then sending bailiffs to break into my house and steal all the fancy stuff I don't have.
I'm in a similar boat. I'm moving to the U.S. this month - I graduated this past July from a UK university, with all the bog-standard student debt. When you move overseas, there is a form you need to fill in and send to Student Finance England - you can read about this here:
Plan 1: Student Loan Repayment - Plan 1 - Repaying from overseas
Or:
Plan 2: Student Loan Repayment - Plan 2 - Repaying from overseas
As per usual, they will work out your repayments based on your plan (the threshold varies between Plan 1 and Plan 2, as you likely know). I've also read something (though can't think of the source right now, sorry) that echos what GeneralPowerpoint points out above - the amounts we'll repay from the United States will likely be higher than the amounts we'd repay if we remained in the UK. I don't recall the reason for this being due to currency conversion (I thought it had something to do with varying thresholds dependant upon the country of residence?), but I may be wrong. Either way, the important thing is to keep Student Finance in the loop.
There seems to be a huge misconception about Student Loans being written off if you move abroad - one of the questions I get asked most frequently by people newly learning of my circumstances, is if I ever have to repay my student debt. Absolutely, I do! For several thousand reasons. But primarily because the last thing I'd want is to have Student Finance breathing down my neck a few years from now, and then sending bailiffs to break into my house and steal all the fancy stuff I don't have.
Last edited by KK85; Nov 13th 2017 at 8:25 pm.
#7
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Re: Do UK student loans affect US credit score?
Are you under 21? If not the wait for F2B applicants is nearer 7 years.
#8
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Posts: 502
Re: Do UK student loans affect US credit score?
I've also read somewhere (though can't think of the source right now, sorry) that echos what GeneralPowerpoint points out above - the amounts we'll repay from the United States will likely be higher than the amounts we'd repay if we remained in the UK. I don't recall the reason for this being due to currency conversion
So you might earn more in Sterling when you work in the USA. But it doesn't actually buy more because the cost of living can be higher too.
So you end up paying a higher percentage of your disposable income on student loan payments because they over estimate how much you're earning in real terms.
If that makes sense?
#10
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Re: Do UK student loans affect US credit score?
So in the UK we're encouraged to pay off as little as possible over time as the remainder will be written off in 30 years. Is this still a good policy or would it be better to pay it off ASAP?
I know that there's a trans-Atlantic financial agreement that I've had to sign with my bank to release financial info to the IRS if they ask (Obama introduced it so that assets weren't hidden abroad), but would that mean that my UK student debt appears on my US credit report? It doesn't right now (I have US bank accounts and credit cards), but could it in the future?
I know that there's a trans-Atlantic financial agreement that I've had to sign with my bank to release financial info to the IRS if they ask (Obama introduced it so that assets weren't hidden abroad), but would that mean that my UK student debt appears on my US credit report? It doesn't right now (I have US bank accounts and credit cards), but could it in the future?
#11
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Joined: Jul 2017
Posts: 79
Re: Do UK student loans affect US credit score?
I can't speak to the Student Loan, but your credit score will be a nice fat zero once you get here.
There's no way to carry it over. The closest I got was opening an account with HSBC who offered me a credit line that corresponded to my (thankfully healthy) salary in the US. I had to even pay a $250 deposit just to get an internet line connected up, because according to the credit bureaus I simply don't exist at the moment.
There's no way to carry it over. The closest I got was opening an account with HSBC who offered me a credit line that corresponded to my (thankfully healthy) salary in the US. I had to even pay a $250 deposit just to get an internet line connected up, because according to the credit bureaus I simply don't exist at the moment.
#12
Re: Do UK student loans affect US credit score?
I know that there's a trans-Atlantic financial agreement that I've had to sign with my bank to release financial info to the IRS if they ask (Obama introduced it so that assets weren't hidden abroad), but would that mean that my UK student debt appears on my US credit report? It doesn't right now (I have US bank accounts and credit cards), but could it in the future?
Last edited by KK85; Nov 14th 2017 at 7:44 am.
#13
Re: Do UK student loans affect US credit score?
Pretty sure the OP will come under that category unless she was a child genius, but I just wondered how it worked.
#14
Re: Do UK student loans affect US credit score?
I can't speak to the Student Loan, but your credit score will be a nice fat zero once you get here.
There's no way to carry it over. The closest I got was opening an account with HSBC who offered me a credit line that corresponded to my (thankfully healthy) salary in the US. I had to even pay a $250 deposit just to get an internet line connected up, because according to the credit bureaus I simply don't exist at the moment.
There's no way to carry it over. The closest I got was opening an account with HSBC who offered me a credit line that corresponded to my (thankfully healthy) salary in the US. I had to even pay a $250 deposit just to get an internet line connected up, because according to the credit bureaus I simply don't exist at the moment.
"I know that there's a trans-Atlantic financial agreement that I've had to sign with my bank to release financial info to the IRS if they ask (Obama introduced it so that assets weren't hidden abroad), but would that mean that my UK student debt appears on my US credit report? It doesn't right now (I have US bank accounts and credit cards), but could it in the future? "
Last edited by Rete; Nov 14th 2017 at 12:46 pm.
#15
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Joined: Mar 2013
Location: Walsall, UK to Centerville, TN
Posts: 103
Re: Do UK student loans affect US credit score?
No connection but here's a trick I've been using to build credit in America.
I pay some of my student loan on an American credit card. Not only does it build my credit which was non existent in the US; I get grocery and fuel points.
I pay some of my student loan on an American credit card. Not only does it build my credit which was non existent in the US; I get grocery and fuel points.