US credit score and outstanding debt.

Hey guys,

This question has been bothering me for the last couple days so I thought I'd consult the expat experts =p

What happens to my US credit score when I move?  I believe I read somewhere that it doesnt transfer with you, and that you start fresh regardless of what your credit was like in the US? (Mine is mediocre at best, Im young and havent really invested in anything to earn it)

Also, what about outstanding debts in the US?  I lined these up and numbered them for easy reading 
 
1.What happens if you dont pay them? 
2.Does that effect your new life in the UK? 
3.How does that effect you if you ever choose to move back?
4. Can lenders "chase" you to a dif. country? 
5.And can you repay from abroad?

The reason I ask is I have outstanding student loans for the 2 years I attended college... however, before I move over (january this year) Im not going to have repaid them and wont have the money after moving and not having a job right away.

Thanks in advance,
Nicky

It is best to keep paying off your debts, especially student loans, because you never know what life will hand you and if you will return to the US.  Always easier to return if you have a good credit score.

I never had a problem either doing a forbearance or deferment with my student loans at times when I couldn't make my payments.  In fact, when I moved here I was temping and because that wasn't a permanent job they let me have an unemployment deferment (so no interest accrued).  I use XE trade to transfer money each month to pay our U.S. debts.

Student loans are one thing you should never default on.  They never go away, not even if you declare bankruptcy.  I doubt the U.S. would track you for loans, but if you ever try to move home you won't be able to get a mortgage for one thing, or a car loan and you probably woouldn't be able to sponsor your spouse to come to the U.S.. 

Student loans aren't like credit card debt, they don't disappear if you don't pay them for x number of years.

You can easily get a forebearance on student loans.  It is stupid not to. 

blah, when it REALLY comes down to it I wouldnt "skip out" on my student loans, Im too obsessive to ever do that. 

Im still bitter that Hurricane Rita hit where I used to live, and because the Uni didnt reopen for that sem. I had to drop out... and have yet to finish my degree. and since those credits dont xfer to england, I feel like it was all wasted.

Thought I'd throw that in there =)

Oh, I forgot to add you can pay online, but I am not sure if you need a U.S. bank account.  That is what I do.  Yuck!!! At least it was only two semesters and your money will be worth twice as much.  Just remember to call your loan company they are used to putting loans in foreberance and are usually nice about it. 

blah, when it REALLY comes down to it I wouldnt "skip out" on my student loans, Im too obsessive to ever do that. 

Im still bitter that Hurricane Rita hit where I used to live, and because the Uni didnt reopen for that sem. I had to drop out... and have yet to finish my degree. and since those credits dont xfer to england, I feel like it was all wasted.

Thought I'd throw that in there =)

Trickynicky, how far off are you from finishing school? Have you checked into taking correspondance/online classes? I've known people who were very close to finishing a degree
and for different personal reasons had to leave school but were able to finish taking the last few
classes by correspondance or online. It's worth looking into...Good luck with the move.

Hi,

There are similar posts up on UKY about the questions you've asked, But basically, DON'T default on any of the debts you have there in the US whilst you are here. You never know when you'll need to go back and you don't want those debts to be added to any you still have to pay back in the UK whilst there!

Also, as metioned in other posts, take advantage of the stronger Sterling to US Dollar value whilst you're here. Send money back, and right now it's worth 'double' in conversion values - payback debts there twice as fast basically! Even when/if the rate goes down to it's in recent years norm of about £1 = $1.50/60 ish rate, you'd still be paying off any debts there quicker - assuming of course you have some savings/dosh to send back!

lastly, speak to your university there and any university here if you plan on attending one. They may give you certain amounts of credit for what you've acheived so far - I know I've read something along these lines when looking at university prospectus's.

Hope this helps!

cheers! DtM! West London & Slough UK!

£1 = $1.50/60 ish rate


now its £1 to $2.02