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Do Other Countries Have Credit Scores?
Do Other Countries Have Credit Scores, and Does My U.S. Credit Score Follow Me?
There's no worldwide system for evaluating credit, but certain habits, like paying on time, matter everywhere.
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Credit scores aren't shared between countries, partly because data protection laws vary. If you plan to live as an expatriate, here are a few things you should know.
Do other countries have credit scores?
Assessments of creditworthiness differ around the world. Some countries, such as the Netherlands and Spain, rely on negative reports — that is, credit mistakes like unpaid debt. Other places, such as Canada and the United Kingdom, have scoring systems that are similar to the U.S. When more information is used to assess creditworthiness, many of the same factors — like paying on time and keeping balances low — help build a good credit reputation. » MORE: Tips for lowering your credit utilization » MORE: » MORE:How credit scores work in Canada
To get an idea of how scoring customs can vary abroad, look no further than our neighbor to the north, Canada. Canada’s credit scoring is similar to the U.S. system. For instance: Scores are on a common range (in this case from 300 to 900), and higher is better. The two major credit reporting bureaus are TransUnion Canada and Equifax Canada. Scores are calculated using factors that may include payment history, outstanding debt, credit account history, recent inquiries and types of credit.In the U.S. system, scores most commonly range from 300 to 850, unless it’s a specialty score like an automotive or insurance score. The U.S. has one additional reporting bureau, Experian.
In the U.S. system, scores most commonly range from 300 to 850, unless it’s a specialty score like an automotive or insurance score. The U.S. has one additional reporting bureau, Experian.
In the U.S. system, scores most commonly range from 300 to 850, unless it’s a specialty score like an automotive or insurance score. The U.S. has one additional reporting bureau, Experian. » LEARN: How credit reports work in Canada » LEARN
How credit scores work in the U.K.
Like the U.S., the U.K. has three major credit bureaus: Equifax, Experian and TransUnion. Each bureau has its own credit-scoring system with its own range, and the higher your score the better. All three ranges begin at 0. Equifax’s scores go to 1,000, Experian’s to 999 and TransUnion’s to 710. Some other information is also considered. For example, registering to vote can help your credit; in the U.S., voter information isn't included in credit reports.Your U.S. credit score won’t follow you
Leaving your credit score back in the States may sound appealing if you’re hoping to escape your debts by moving abroad. It’s not that simple. Often, when you apply for a visa in another country, your debt will be examined. If it appears you’re trying to avoid paying off debt, your application will likely be denied. Maybe you’ve been good about repaying debt. You may have other reasons why you want to join U.S. expats in popular destinations such as the United Kingdom, Australia and Mexico. You still can’t take your credit score. You may, however, be able to get along using U.S.-issued credit cards, but you’ll want to stick with those that have no foreign transaction fees. And it could be a good idea to keep a U.S. bank account open because you may need to pay the balance in U.S. currency. » MORE: See our picks for the best no foreign transaction fee credit cards » MORE: If you want to establish new credit in a different country, you can open an account, perhaps a secured card, to begin to build credit in your new country of residence.Meet MoneyNerd, your weekly news decoder
So much news. So little time. NerdWallet's new weekly newsletter makes sense of the headlines that affect your wallet.So much news. So little time. NerdWallet's new weekly newsletter makes sense of the headlines that affect your wallet.
So much news. So little time. NerdWallet's new weekly newsletter makes sense of the headlines that affect your wallet.