Does credit score transfer internationally?
Does Your Credit Score Follow You When You Move Abroad?
Moving to a new country is an exciting adventure, but it can also come with a few challenges. One of those challenges is dealing with your finances, including your credit score.
Does Your Domestic Credit Score Matter Abroad?
Unfortunately, the answer is no. Your domestic credit score is based on your credit history in your home country. When you move to a new country, you are essentially starting from scratch. This means that your new country will not consider your credit history from your previous country when assessing your creditworthiness.
How Creditworthiness Is Determined Internationally
Each country has its own unique credit scoring system and data sources. This means that the factors that determine your creditworthiness will vary from country to country.
In general, lenders in other countries will look at your:
- Income
- Employment history
- Debt-to-income ratio
- Payment history (if available)
- Residency status
Building a New Credit Profile
Once you move to a new country, you will need to start building a new credit profile. This can be done by:
- Opening a bank account in your new country
- Getting a credit card or loan in your new country
- Making regular payments on time
It can take time to build a good credit score in a new country. However, by being patient and making responsible financial decisions, you can eventually establish a strong credit history and access the same financial products and services as citizens of your new country.
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