A proposal of Department of Homeland Security mentions that immigrants must provide proof of financial status, credit history and credit scores, for review. Moreover, this will help to determine admissibility of a person in the country. The immigrants need to provide proof of financial status. The list has applications for public benefits, proof of Private Health Insurance for covering a few medical conditions, besides credit scores/histories.
Immigrants should not depend on Government Aid
Not dependent on government aid
The aim here is to stop immigrants from becoming legal residents, who are likely to become a public charge, and dependent primarily on government aid. This proposal, will go before the public for commentary, and will apply to immigrants also who seek an extension of stay/change of status.
Credit scores/reports reveal details regarding
Bill payment history,
Current debt,
Work history,
Residence history,
Self-sufficiency
Lawsuits and arrests
Bankruptcies, of a person in the U.S.A.,
The U.S. Citizenship and Immigration Services will consider a first-class credit score as a positive factor because it shows an applicant can support himself / herself and dependents on the strength of financial records. The rule defines a good credit report as one generally near or above the average of U.S. consumers.
Effect on immigrants
Moreover, there is a concern that the rule will discourage immigrants from availing public aid. Presently several low-income families, and first-generation immigrants, need help to get proper food.
Additionally the Immigrants may opt against receiving women, and children or WIC benefits for avoiding any trouble with immigration.
An expert feels that the proposal was overdue. The definition of public charge since 1990 was lenient. There is a strong need for updating the rules. Credit scores/histories will not be the only factor to judge immigrants’ applications. There is a necessity to show sound financial standing today. Immigrants have a sponsor who supports and certifies that they will remain self-sufficient. The norm is earning sufficient money to remain above 125% of the poverty line which is $25,975, for a family of three as per Department of Health and Human Services.
Action needed from Immigrants
Another expert stated that an individual must not be rejected for having a high credit-card balance. Some of the immigrants do not have a credit score, and need to build their credit history from the beginning involving 6 months.
Initially, people must have one credit account standing in their name, which is possible when a lender offers a secured account or a friend/family co-signs a loan. Furthermore as an Alternative they can use a prepaid debit card which reports all activity to credit agencies.
Not having a credit report/score will be a negative factor to decide if an immigrant becomes reliant on public benefits. In case there is no report or score, the U.S.C.I.S. will consider immigrants to have a fine standing if they show no debt or a history to pay bills in a timely manner.
Conclusion
There will also be a review if immigrants have proper certification to receive public benefits, or food stamps. Another feature is using the benefits for a longer time than permitted. The DHS will make exceptions in certain situations like unemployment and concluding college education.