Did you receive a golden opportunity to go abroad due to your stellar performance at work? Are you feeling at the top of the world after receiving the good news from your boss? Well, it is natural to feel ecstatic at the prospect of living in a new country. However, this doesn't mean that you should forget about the other things in life. Keep it in mind that you'll be returning to your homeland after a few years or months. If you're not conscious and make some gross mistakes, then be prepared to get some vicious financial shocks after coming back to the country.
You need to manage your finances carefully before and after leaving the country. Or else, you may find it very difficult to qualify for new credit or loans after returning to your native land. Banks may not show interest in opening an account for you. Moreover, you can be susceptible to identity-thefts easily.
Usually, people are so engrossed with the thought of getting their children admitted to a good school or securing a good house that they hardly worry about finances. They assume that everything will be fine after going into the new country. Their misconceptions get cleared after returning to their homeland. These people realize that they should not have kept a blind eye on their finances.
Just because other people fail to maintain their credit, it does not mean that your finances should also suffer. You can fly to another part of the world, live there and then come back without hurting your credit. All you need to do is to avoid repeating the mistakes done by millions of people in the country.
Read along to know about some common mistakes often committed by the people before and after leaving the country.
Mistakes made by the consumers before leaving the homeland
Check out the 2 errors that people often commit before stepping into another country.
1. Closing credit and bank accounts: You may feel like closing all the accounts before going away from the country. However, keep it in mind that your credit gets damaged after closing a credit card account. In fact, the damage will be greater when you close a large number of accounts. It will take a huge amount of time to repair that damage.
You can say good bye to your departmental store cards. You'll hardly need them in the foreign country. If you have 30 cards, then you can easily cancel some of them. You won't need all your cards.
Inform the credit card companies (the cards which you're going to cancel) that you're going to live in another country for a few years. Refrain from canceling the cards at one go. Rather cancel one card after another.
Notify the credit reporting agencies about your impending departure. They'll add a special note on your credit report. If anyone tries to open a credit account in your name, then this note will instantly show up. This is a good defense against identity-theft.
Keep your bank account open so that you can pay your credit card bills online. You can ask your employer to pay your salary partly in US dollars. One has to pay a substantial amount for exchanging the currencies. If you keep a US bank account, then it will help you reduce cost on that area.
2. Not gathering knowledge on banking system: You'll be doing a mistake if you think that banking system works in the same way across the planet. You may have to get a new ATM password and PIN number in the foreign country. It may be the case that you're used to transferring money from one account to other. However, transferring funds from one country to another is a different issue altogether. There are a few countries which have strict rules regarding exchange of foreign currencies. So, it is better to know these rules from beforehand.
Find out the correct procedure of applying for a credit card in a foreign country. Get acquainted with the foreign credit card rules too. They'll be different from the US. For example, in United Arab Emirates, you won't be permitted to leave the country after defaulting on the credit card.
Mistakes made by the consumers after leaving the country
Here are the 2 mistakes made by the consumers while residing in the foreign country.
1. Keeping your accounts inactive: If you don't use your accounts after shifting into the new country, then bank will mark them as inactive. So, it is better you use the cards once a while. Check the balance in your accounts from time to time. Remember, identity thieves target the active but unused accounts. Identity-thieves will pull your credit report and find out that you're not using certain accounts. They'll try to get in touch with the credit card company and change the address. Thereafter, they'll use the cards at their free will.
2. Changing the address of all your accounts: You should keep your US address at all cost. Otherwise, it will be hard for you to maintain your US accounts. You may even face problems while applying for credit cards after coming back to the country. Retain your mailing service. This will help you have a US address. You can get an online access to your mails.
There is yet another alternative. You may request your relative or family member to receive and check your mails. You may give power of attorney to your relative. This way he/she can manage your finances while you're in another country.
Make sure you give this power to a person who is trust worthy. Choose a person who can manage finances efficiently. Otherwise, your financial life will become a mess. Try to keep a tab on this person. If he/she makes mistakes, then you can take necessary steps immediately.