To begin with, it’s important to know that anyone relocating to New York City is going to face some challenges. The city is not particularly easy to navigate and there are many ways to drain your bank account before you even get settled in. The job market is among the most competitive in the world, and being new to the city isn’t going to help that situation one bit.That being said, being aware of these challenges can help you better prepare for the hurdles that will present themselves when you move to New York City as a foreign national.What is a credit score and why do I keep being asked for one?
After the great depression, the United States adopted a rating system that is referred to as your credit score. This score is used rate how reliable you are at paying your debts in a timely manner. Your credit score is built from paying your bills on time including loans, credit card payments, and utility bills.The reason that this is such an issue for internationals is that it takes considerable time to build a credit score. When you turn 18 in the United States – or arrive in the United States from a foreign country – you have no credit history and therefore are a higher risk for lenders, landlords, or anyone else relying on you to make monthly payments. Note that it does not matter if you have endless money in your home country – you need to build your credit score in the United States, and the only way to do that is over time. Usually a few years are needed to build a good credit score and even a couple slip-ups such as missing a loan payment or paying your rent late can have a long-term negative effect on your score.Without a credit score, you should expect to pay higher security deposits on things like your cell phone bill and utilities. As a solution, you can find a co-signer or guarantor – someone who has a developed credit history and will sign on your behalf. They then risk their own credit score should you be late or default on your bills and they become responsible for paying the debts. Otherwise, you simply will need to prove that you are responsible with money over time to develop your credit score.Your credit score is also closely tied to the next issue every international faces – finding a home.Where can I live?There are a few things that make finding a home in New York City more complicated than other international cities.
- The city is huge. Finding a neighborhood that is a good fit for you will take some time, and it’s not as easy as finding a neighborhood you will like. Can you afford this neighborhood? Is the neighborhood close enough that you can get to work with relative ease, or did you just sign yourself up for a 90 minute commute every day? It’s important to take all of these things into consideration.
- The city is expensive. Be prepared to pay a significant premium for what you may be used to in your home country – or prepare to live with roommates or a much, much smaller apartment.
- That credit score we mentioned earlier?Without credit, many realtors and landlords will be skeptical about you moving in. It is standard for landlords to require you to show proof of income (which you may or may not have) and to ask for your credit score. Without a good credit score, they will most likely ask for a more significant security deposit, multiple months of rent up-front, or will require you to find a co-signer or guarantor (someone to take responsibility should you not pay your rent).
For these reasons, finding a home in New York City can be seriously difficult. You can find some more information from our guide on Moving to NYC, including options for interim housing until you figure out just where you want to live.What in the world is a social security number?Another part of documentation that internationals will fail to have is a social security number. A social security number is issued when a US citizen is born and is the identification number used for tax purposes and for social benefits when a citizen needs social services.You will need a social security number to begin work in the United States, to open a bank account in the United States, to sign up for credit cards in the United states, to do almost anything in the United States. Getting a social security number is not a difficult process but can be frustrating as sometimes the documents needed are not all immediately available to you and it can involve quite a bit of waiting time.To find more details on how to obtain a social security number, you should look into the more in-depth information in our relocation guide.Where can I put my money?Another necessary step that can be confusing is the number of requirements for opening a bank account. You will need to have a social security card, proof of address, may need proof of employment and usually will need to maintain a minimum balance in the account once you open it.Note also that banks in the United States have to follow the guidelines set up by government organizations, meaning that large transactions (over $10,000) must be reported to the IRS (tax agency) to ensure all income is reported when you file your tax returns. This includes transactions from foreign bank accounts.Until you have a social security card, steady income and an address that you can prove is yours, you will need to continue to rely on the banks you have in your home country. There are some global banks in New York City that may make this easier – HSBC, for example – but the only real solution for the issue of opening a bank account is going to be time.How do I get healthcare and why does it cost so much?
Another eye opener for many is the cost of medical care in the United States and how people use the medical system due to its extravagant cost. Private health insurance is extremely expensive and is not currently subsidized by the government. For that reason, many Americans remain uninsured and take their chances with high medical costs if their employer does not provide health insurance.Even with insurance, medical care can be quite costly with co-payments and deductibles. These are payments that are required to ensure that health benefits are not abused. For example, you may be required to pay $15 every time you visit the doctor and $30 for every time you visit a specialist. Medication also will have co-payments or deductibles. The amount of a deductible varies depending on the cost of your medical insurance. For example, a low cost, basic health insurance plan could have a $1000 deductible for a basic medical procedure. This would mean that you pay for the first $1000 of the procedure and the insurance pays for anything over that amount.Because the cost of medical care is so high, Americans reserve doctor visits for cases where prescription medication is needed or it is on the border of an emergency. Hospital visits are reserved for very serious issues – broken bones, head trauma, heart attacks, etc. Ambulances cost hundreds of dollars to call and should be reserved for life or death scenarios.Adapting to the way healthcare is used is sure to be a transition for internationals. Check out our guide to US healthcare for a more in depth look.Nervous about moving to New York City? Check out our relocation guide for further information on finding housing, using healthcare, getting a social security card and much more.