The Struggle is real! Establishing credit in the US for foreigners

Presenters Moderator: Stacy Miller, CRP, GMS-T – Senior Account Manager – Quicken Loans Cori Beaudet, SCRP, SGMS – Director, Abbott Talent Deployment – Abbott Laboratories Andrew Cox – Founder & CEO – Mycredex Inc.

PEOPLE AND THEIR SKILLS ARE GLOBALLY MOBILE. THEIR CREDIT IS NOT.

…U.S. businesses welcome 350,000 highly skilled, well paid professionals annually… 4

…all of whom need help. 5 CREDIT DENIED

Credit In the USA: A different underlying philosophy… The United States… Guilty until Proven Innocent The Rest of the World: Innocent Until Proven Guilty

Why Doesn’t Credit Travel? Legal Barriers Technical Barriers Practical Barriers

What this can mean… Rejected for credit cards Paying sub-prime rates for car loans Denied mortgage financing Forced to stay in rented accommodation long term Paying cash deposits for cell phones, utilities and cable service Paying 40%-126% more for insurance products

HELP! The Vicious Credit Cycle…

10 Bank Accounts Mortgages Store cards Cable Company Gas & Electricity Water Company Home Insurance Credit cards Mobile Phones Renting a home Second Car Furniture rental Car Insurance BUT CREDIT SCORES MATTER… 10

Why Credit Scores MATTER: HOUSING SCORE RANGE MORTGAGE 30 YEAR FIXED RATE* MONTHLY PAYMENT (P&I) MONTHLY $ DIFFERENCE VS ANNUAL SAVINGS %$1,350$37$ %$1,387$ %$1,417$30$ %$1,454$67$ %$1,530$143$1, %$1,630$243$2,916 Source: Informa Research Services

Why Credit Scores MATTER: CAR PAYMENTS SCORE RANGE 36 MONTH AUTO LOAN $25,000 MONTHLY PAYMENT (P&I) MONTHLY $ DIFFERENCE VS ANNUAL SAVINGS %$730($14)($168) %$744$ %$768$24$ %$798$54$ %$849$105$1, %$863$119$1,428 Source: Informa Research Services

Why Credit Scores MATTER: INSURANCE

So what does NO or LOW credit cost? $4,000-12,000 Annually

15 THE SOLUTION? Enabling new arrivals.to gain access to the credit they need, at the rates they deserve…. And establish and build a U.S. credit profile quickly AND PROACTIVE CREDIT MIGRATION

The Credit Migration Difference $$$$$$$$$$$$$$$$$$$$$$ Organic Approach With Credit Migration Year 1Year 3Year

The Virtuous Credit Cycle…

18 CREDIT SCORE CASH SAVINGS PRODUCTIVITY YEAR 1 > 700 $4,000-12,000 >150 hours saved

A question for YOU… OR…

21 WHAT CAN YOU DO? Enable pre- departure preparation: Briefing Diagnostics Options Action Routemap AND Provide actionable post arrival support Sources of Credit Credit Management Credit Monitoring

Some of the companies who provide support on this vitally important issue which affects EVERY arriving assignee…

What can your organization do to help facilitate this process? Advise assignees/permanent transfers to gather documentation that supports their recent credit/payment history – Mortgage/rent statements – Utility payments – Cell phone statements – Bank statements – Auto loan payments – Driver record – Credit card statements – Tax payment history and tax filings

What can your organization do to help facilitate this process? Build corporate relationships with insurance companies, banks, mortgage loan brokers and auto sale companies – Look local as well as national, provides options and trust in the organization Begin the counseling process early and make connections with service partners as soon as possible. – Some companies may require that they begin offering their services prior to entry into the US – Your employees may need to transfer large sums of money from their home country and that may need to be accomplished in person

What can your organization do to help facilitate this process? Pay relocation allowances/cash benefits in the HOST location For those employees coming from currency restricted countries, offer a transition allowance to help build down payments and provide interim solutions

What can your organization do to help facilitate this process? As soon as the employee enters on their US visa, advise them to make sure they open a local bank account and credit card Even if the limit is small, credit will build quickly

Questions and Thank You!