What Happens to Your Credit When You Move to Another Country?

Your credit report and credit score determine whether a lender is willing to extend new credit to you. When you move to another country, you probably need to make many purchases right away, from buying a home and car to getting basic furniture and items for your home. Unfortunately, you might have a hard time establishing credit immediately after your move.

No Transfer

Your credit report is country-specific. The credit reporting laws and practices vary widely from one country to another and the credit bureaus that gather information are country-specific. Therefore, information that was on your credit report in the country where you lived does not automatically transfer to your new credit report in the country you move to. Instead, you get a blank credit report in your name at the bureaus that report credit in your new location.

Possible Consideration

Depending on where you move, creditors in your new country might be able and willing to consider your international credit report when extending credit. The credit bureaus in the United States also do business overseas, so if they have an office in the country where you move, the lender could at least access and consider your report as a supplemental reference when evaluating your application. However, lenders are not obligated to consider your credit report from your home country.

Establishing New Credit

Start small when you need to get credit after you move to a new country. Apply for just one credit card and use it regularly to start developing credit history. You also might be able to get an installment loan at a relatively high interest rate and refinance it later after you have established a positive credit history. In some countries where the cost of living is low, credit is not widely available, in which case you will need to get by in the beginning without opening any credit accounts.

Things to Consider

If your move is only temporary, you should make every effort to maintain your credit score in your home country while you are living abroad. Part of your credit score considers your average age of accounts, so your score will be much better if you keep at least some of your credit-related accounts open and active than if you close them all and open new ones when you return. One of the easiest ways to do this is to use your credit cards occasionally for online purchases.