I live in Washington, DC and my credit score is rather fair, below 600. But I am planning to leave for Mexico and I will definitely need to apply for a loan to settle down in that country. I wonder if my FICO score from the US matters abroad or I will be considered an applicant with no credit history at all?
Does my credit score matter abroad?
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Answers: 1
COMPACOM TEAM
Expert answer
Almost all the countries have credit score systems to evaluate how risky a borrower you are. There may be some differences but the basic principle is the same, lenders still look at how you’ve conducted your finances, the timeliness of payments, and how much of a risk you are. Let’s compare American, Canadian, British and European scoring.
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The USA |
Canada |
The UK |
Europe |
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They work on a scale of 300 to 850 and have three credit bureaus. |
They work on a scale of 300 to 900 and have two credit bureaus. |
There are three credit bureaus, and lenders also take into account court judgments and whether the borrower has voted in elections. |
Your score depends on your current salary, your family situation, current debts, residence status, and other factors. If you don’t pay off on time, this information is shared by all lenders across most of Europe, which makes it hard for you to get approved for a loan. |
Must know!
First of all, you must remember that if you plan to move to another country you may face difficulties getting a visa if you have serious loan debt. In case you did move you’d better make sure your credit record is OK as it may also be counted while applying for a loan abroad. The credit bureau Equifax operates in 15 countries through Europe and Latin America.
If you don’t maintain your credit in the U.S. while living abroad, you lose it and will have to start over once again upon return to the States. And everybody knows that no credit is as bad as having a poor one. So use the Internet to check your score and pay by your credit card at least once in a while to show that you use it and track your credit.
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