Do Other Countries Have Credit Scores? | Build Credit Abroad (2024)

You’ve worked hard to build up your credit score, and now you’re moving abroad or considering purchasing property abroad. You may be wondering whether that credit score has any value or if you’ll have to start over.

That depends. Many other countries have some form of credit score or mean to assess creditworthiness. But as you’ll see below, systems vary between countries that use credit scores. Whether credit score information can be shared across international borders also varies. Find out more below.

When did credit score tracking begin?

In 1970, the Fair Credit Reporting Act passed in the U.S. and created a regulated system that tracked what information would be collected, for how long, what exactly was reported, and how to obtain copies of your credit report. It wasn’t until 1989 that the first general-purpose Fair Isaac Corp. (FICO) score was created.

What countries have credit scores?

Countries around the world including Canada, the U.K., Spain, China, and Japan use credit scoring systems. Not all countries that use credit scores have systems like the U.S. Some only track negative marks like late or missed payments, while others track total debt or debt history. Below we’ve compiled a list of a few major countries and their unique credit scoring systems.

Germany

Germany is one of the countries that uses credit scores, but there is only one credit bureau. It’s called the Schutzgemeinschaft für allgemeine Kreditsicherung, or SCHUFA for short. SCHUFA is a private enterprise known for fair credit-building steps to ensure you start on the right foot.

The company works much like a U.S. lender, tracking loan activity, open accounts, unpaid balances and fines. Unlike U.S. systems, with SCHUFA, every citizen begins with 100, and the score slowly diminishes as you borrow more money. A score of 90 is considered above average with the SCHUFA system. The top credit tier starts at 97.5.

Canada

Canada’s credit scoring system is the most similar to the U.S. It operates through Equifax Canada and TransUnion Canada. Much like the U.S., each creditor keeps track of payment history, age of accounts, and credit utilization. Based on your track record, you will receive a score between 300 and 900. 680 is considered an above-average and can help you qualify for a loan with a lower interest rate.

Japan

Japan has three credit bureaus: Association’s Personal Credit Information Center, the Japan Credit Information Reference Center Corp. (JICC), and the Credit Information Center Corp. (CIC). Unlike other countries on this list, Japan doesn’t issue credit scores. But it does track information like account terms and payment history.

In Japan, having a healthy relationship with your bank is more important than a specific credit score. As a Japanese citizen, maintaining a responsible relationship with your bank and your employer should be enough to get credit approval. The bank is responsible for taking into account details about employment history, salary, and history at the bank.

Non-Japanese citizens or newcomers to the country could encounter more difficulties because of the lack of Japanese credit bureau data for them to pull from.

United Kingdom

Of countries that use credit scores, the U.K. is one of the most similar to the U.S. If you’re planning a move to the U.K., the names of these three credit agencies should ring a bell. Experian, Equifax, and TransUnion (previously called Callcredit) work in the U.K. much as they do in the U.S. The only difference is the scoring ranges. In the U.K., Experian credit scores range from 0 to 999, while TransUnion goes from 0 to 710, and Equifax goes from 0 to 700.

To earn a line of credit or qualify for a mortgage, you must show good standing in payment history, credit utilization, and age of accounts. As a bonus incentive, the U.K. offers a boost to your credit score if you register on its Electoral Roll.

Spain

In Spain, credit history is tracked in its risk-management center, Central de Información de Riesgos del Banco de España (CIRBE). To receive any type of credit, the CIRBE must first complete a credit check to highlight any past payments or current debts. The CIRBE only tracks negative points, like unpaid debt. It can stay on your record for up to six years until the debt is cleared.

Unlike other countries that use credit scores, CIR information is only available to financial institutions, not to consumers. If you’re considering applying for a loan, make sure you bring the information about your credit report from your home country. Most Spanish loan approvals for non-Spanish citizens require a 30% downpayment and proof of income.

Australia

Up until 2014, Australia only reported negative marks. As of 2021, there are four credit reporting agencies, Equifax, Dun and Bradstreet, Experian, and the Tasmanian Collection Service. This new credit reporting system — similar to the U.S. — allows lenders to make a more balanced assessment of a borrower’s likelihood of repayment based on their history and current accounts.

To determine your credit score they collect the following: credit file age, type of credit, amount you’ve applied, negative marks, court judgments or defaults, payment history, and open and closed accounts.

Is my credit score useful anywhere in the world?

Even though many countries use credit scores, there is no international credit scoring system. If you want to apply for credit or a loan internationally, you can bring a copy of your U.S. credit report, although lenders may choose to disregard it. To apply for credit overseas, you’ll need proof of income or assets. In some cases, you may be asked for rental history, and referrals from the U.S. could help your case.

Is there an international credit report for individuals?

There is no international credit report for individuals. Countries that use credit scores each have their system. Credit scores built in the U.S. are only valid within its borders. Because of international privacy laws, credit scores are not shared between countries. However, if you get residence or citizenship in another country that uses a credit score system, you can establish a credit score in multiple countries.

Can I build credit abroad?

Yes, you can build credit abroad, but this depends on the credit scoring system of your adopted country and whether you have the appropriate identification to be considered for credit in the country. Usually, you’ll start as a brand-new credit file. In countries that only track negative marks, this won’t hurt you. But in countries that build credit on length of credit and on-time payments, you’ll need to build credit history over time.

As a possible alternative, Equifax operates in 15 countries across Europe and Latin America and may allow you to transfer some credit score information. You can check Equifax International Credit Reports. You must know the local laws because there are laws in place that forbid sharing of credit information overseas.

Summary of what countries use credit scores

Countries that use credit scores include Japan, China, the U.K., Canada, Australia, Germany, and the Netherlands. While you cannot transfer your credit scores internationally, many of the principles of building a good credit score are the same in all countries.

If you’ve built a good credit score in the U.S. and are moving to a country where Equifax operates, you may be able to carry that good credit score with you to the new country.

FAQ

Are credit scores international?

No, credit scores aren’t international. Each country uses its own credit scoring system.

Is America the only country with credit scores?

No, America is not the only country with credit scores. Many countries use credit scores.

Do all countries have credit scores?

No, not all countries have a credit scoring system like the U.S.

Do Other Countries Have Credit Scores? | Build Credit Abroad (1)

Written by Grace Kilander Grace Kilander is a freelance content writer based out of Las Vegas, Nevada. After 15 years she left the hospitality industry, started multiple businesses and launched her writing career. Her passions including all things health, wellness and sustainability. In her free time, you’ll find her enjoying hot pilates classes and spending time outdoors with her husband, son and two dogs.

Do Other Countries Have Credit Scores? | Build Credit Abroad (2024)

FAQs

Do Other Countries Have Credit Scores? | Build Credit Abroad? ›

Other countries have their own systems to judge whether borrowers are likely to pay off their debts. Monitor your credit, track your spending and see all of your finances together in a single place. Credit scores aren't shared between countries, partly because data protection laws vary.

Does your credit score follow you in different countries? ›

Other countries have their own systems to judge whether borrowers are likely to pay off their debts. Monitor your credit, track your spending and see all of your finances together in a single place. Credit scores aren't shared between countries, partly because data protection laws vary.

Do foreigners have credit scores? ›

How Long It Takes an Immigrant to Build Credit. It can take immigrants with no credit several months to build a positive credit report. Generally, it takes at least three months and probably six months of activity before a credit score can be calculated. Many immigrants are able to develop a good score within a year.

Who gives countries credit scores? ›

This entry provides the current bond ratings for a country or territory from each of the three major credit bureaus (Fitch, Moody's, and Standard & Poors).

Does UK credit score work in the USA? ›

International credit scores generally do not transfer to credit scores in the US. Most credit-builder products, like secured credit cards, look at your bank account instead of your credit score.

Is my credit score different in different countries? ›

Typically, a credit score is only applicable within its respective country. If you decide to move to another country, you'll likely need to build a new credit score. Your credit score in the U.S., for example, probably won't affect your score when establishing credit in Germany.

Do countries outside the US have credit scores? ›

What countries have credit scores? Countries around the world including Canada, the U.K., Spain, China, and Japan use credit scoring systems. Not all countries that use credit scores have systems like the U.S. Some only track negative marks like late or missed payments, while others track total debt or debt history.

What countries have no credit score? ›

Not all countries use credit scores to assess a debtor's creditworthiness. Japan, the Netherlands, and Spain rely on factors like one's income, repayment history, and length of employment to determine creditworthiness.

Which country has the highest debt in the World Bank? ›

India takes the top spot. The world's most populous country owed $38.3bn to the WB at the end of 2022, down by almost $1.5bn from a year earlier. India's outstanding balance is almost double that of the next biggest debtor, Indonesia, with $20.6bn.

Can debt from another country follow you? ›

You're still legally responsible for debt whether you're in the United States or not. You can also continue making payments on it, and if you do, you won't have any issues. If you abandon your debt, it won't follow you to a new country, but it can lead to other issues.

What is the ideal credit score in USA? ›

Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.

Do credit scores transfer internationally? ›

Your credit score will not follow you to another country, but your financial situation, including your debt levels and income, will still play a pivotal role. Creditors cannot share your financial information abroad and different countries have different standards for assessing creditworthiness.

Is credit score us only? ›

You might wonder, “Do other countries have credit scores?” The short answer is yes. But if you're planning an international move, you might be surprised to learn that you can't take your credit score with you. Some countries—like Canada and the U.K.—have credit scoring systems that are similar to the U.S. model.

Does your credit score reset in a different country? ›

No, your credit score does not transfer automatically when you move to countries. Each country has its credit system and reference agencies. This makes it necessary to build a new credit history in your new country of residence.

Will my debt follow me to another country? ›

Technically, nothing happens to your debt when you leave the country. It's still your debt, and your creditors and collectors will continue trying to get you to pay it back. Just as they would before, those efforts may include phone calls and letters.

Will my US credit score follow me to Canada? ›

If you're new to Canada, you won't have any credit upon arrival. That's because your credit history from your country of origin — good or bad — won't transfer with you to Canada. Don't stress! There are simple ways to build your Canadian credit score, like applying for a secured credit card or getting a cellphone plan.

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