How does credit score in other countries work?
How does credit score in other countries work? Is there an international credit system you can use in different countries or does each country have their own system?
Settling and moving around to different countries would be much easier if we could use the same credit score system around the globe. Unfortunately, there are no international credit agencies that exist yet. Each country has their own way of deciding how capable borrowers are of paying off their debt.
While there is no single international credit rating or international credit score, a few countries use similar systems while some, like Japan, use none at all. And even though multiple countries, such as the U.S., U.K., Mexico, Russia, and Canada use Equifax, a consumer credit reporting agency, credit scores on not transferrable between countries. This is because each of them may use a different combination of credit reporting bureaus and are based on slightly different factors.
There is no International credit check– does this mean people can escape from debts by moving to a different country? No. Governments look for debt when you apply for visas for different countries. If it seems likely that you are avoiding debt, your visa will not be approved.
Perhaps one day there will be an international credit report recognized in multiple countries and make a traveler’s life much easier.
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