Do Other Countries Have Credit Scores?

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 your credit score has any value in a new country, or if you’ll have to start over. The answer is, it depends.

Do other countries have credit scores? Yes. Many other countries have some form of credit score system or means of assessing creditworthiness. But as you’ll see below, systems vary between countries that use credit scores. With vastly divergent systems, the ability to transfer credit scores between countries is rare. Read on to understand global credit scoring systems and what they could mean for you. 

If you’re looking for ways to build your credit, MoneyLion is here to help! MoneyLion offers a free and convenient way to find offers from our trusted partners to help you improve your credit — such as credit monitoring, credit report disputes, and getting credit by paying bills. A good credit score can lead to lower interest rates and increased borrowing power on loans and credit cards. 

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.

Although the government offers consumer protection, the U.S. credit bureaus that report credit scores of individuals and companies are publicly traded companies. Now, even a non-U.S. citizen can get a U.S. credit score. Each of the three credit bureaus — Experian, Equifax, and TransUnion — may track slightly different information so you could see different scores with each credit bureau. 

What countries have credit scores?

Countries worldwide, 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. In fact, most have unique features. Some countries, like Spain, 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 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. You will receive a score between 300 and 900 based on your track record. A score of 680 is considered above average and can help you qualify for a loan with a lower interest rate.

Japan

Japan has three credit bureaus: The Japanese Bankers 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 resident, maintaining a responsible relationship with your bank and 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 residents 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). The credit agencies 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 sign on to its electoral register.

Spain

Credit history is tracked in Spain’s risk-management center, Central de Información de Riesgos del Banco de España (CIRBE). To receive any credit, the CIRBE must first complete a credit check to highlight 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 using credit scores, CIRBE information is only available to financial institutions, not 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 residents require a 30% downpayment and proof of income.   

Australia

Up until 2014, Australia only reported negative marks. As of 2023, there are four credit reporting agencies, Equifax, Dun & Bradstreet Corp., 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:

• Payment history
• Recent credit applications
• The amount you’ve applied for
• Credit file age
• Outstanding debts
• Delinquent accounts
• Open and closed accounts
• Types of credit
• Negative marks
• Court judgments or defaults

Australian credit scores can range from 0 to 1,000 or up to 1,200, depending on the reporting body. High credit scores indicate more creditworthiness than low scores. 

China

China uses a credit system that integrates financial factors with social factors like traffic violations and arrest records to determine a person’s creditworthiness. The social credit system aims to measure and report the trustworthiness of individuals and businesses.

In China, a low social credit score can prevent someone from being approved for a credit card or loan, and consumers with low credit may face job restrictions or travel bans. 

Mexico

Mexico has two credit systems. Mexico’s official credit bureau, the Buró de Crédito, tracks consumer credit information. Around 90% of Mexican residents and nearly as many Mexican businesses rely on the Buró for their credit history. The scoring is similar to the FICO model but with a larger range. The minimum score to secure a mortgage in Mexico is between 400 and 699, while a score of 750 is considered excellent. 

A private credit bureau, Círculo de Crédito, is gaining popularity with Mexican banks. Círculo de Crédito uses FICO score models to determine creditworthiness. Like the FICO score used in the U.S., consumers receive a score between 300 and 850, with any score over 740 considered very good.  

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 disregard it. To apply for credit overseas, you’ll need proof of income or assets. You may be asked for rental history in some cases, 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 own 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 residency 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.  

You have one possibility for the transfer of some credit information. Equifax operates in 15 countries across Europe and Latin America and may allow you to transfer some credit information. You can check Equifax International Credit Reports. However, it’s essential to understand local laws or speak with a lawyer, as many countries have laws in place that forbid sharing of credit information overseas.

Building Good Credit History Globally

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. If not, look for local alternatives to build credit more quickly. This could include becoming a registered user on someone else’s account or applying for a credit-builder loan or the equivalent in that country. With a little creativity, you can build credit wherever you go in the world. 

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