Overseas credit reports: Are credit scores international?

If you’re getting excited about moving abroad, or you’re just about to begin a new life in the UK, credit might not be the first thing on your mind. Things like finding a new place to call home, or settling into a new job, might feel more important right now. But because you often need credit to get phones, bank accounts and for some rental agreements, before long you might be wondering: does my credit score transfer to another country?

Does everyone have an overseas credit report?

The short answer is no, you don’t have an international credit report. Your reports are records of your credit history. They detail how you’ve managed things like borrowing and bills in the past. In the UK, they’re generated and held by three credit reference agencies (CRAs): Experian, Equifax, and TransUnion. 

The UK CRAs don’t hold information about how you’ve managed money outside of the country or any foreign credit reports.That’s because each country has different data protection laws and scoring systems so it’s not possible to have standardised, international reports for individuals. CRAs can only collect data about your borrowing in the country where they are based. If you move abroad, you will essentially be back to square one when it comes to your history.

It’s important to note that your score is separate from your report. Where your report details your activity and is visible to lenders, your credit score is a helpful summary of your overall credit history that is only visible to you.

Are credit scores international?

While credit scores and reports are technically different, your score doesn’t transfer internationally either. This is because it’s calculated from the report held on you in the UK so you can’t have one which travels with you abroad. 

If you live abroad for a relatively short amount of time (like, a year) it’s possible that your UK credit score won’t have changed much when you come back. But if you don’t return for many years, then you’ll have a gap in your history without any activity meaning it might have an effect on your report. Likewise, if you apply for credit soon after moving abroad, you will probably find that your history might not be very strong due to the lack of activity on your account in that country. In both cases, you would need to build your credit history to improve it.  

Can I transfer my credit history internationally?

Unfortunately not, but sometimes you might find that lenders will consider reviewing a copy of a report from your home country if you can give them one. 

It’s important to know that even though your credit history won’t come with you, it doesn’t mean your debts can’t follow you on your travels. You’ll still be held accountable for any money you owe in the country you’ve left. While it is more complicated for creditors to take legal action against you while you’re abroad, bear in mind that you’re not immune. Your debts will still be active while you are away and can become more serious. If left unattended, an unpaid debt can become a default on your report, or the lender might take legal action to recover the debt.

What if I am moving to the UK?

If you’re moving to the UK to live for the first time, you’ll be starting your history from scratch. Once you begin building up a history of payments you’ll have a credit score, but it will likely be very low to begin with. Try not to be too discouraged by it though, it’s possible (and easier than you think) to boost your credit score.    

Read this helpful blog post to find out how to get credit when you move to the UK.

Quick ways to build your credit in the UK

Whether you’re moving to the UK for the first time, or returning after a long time away, you will probably be looking for the fastest, proven ways to build, or rebuild, your credit score. Here are three tips to help you get started: 

1. Set up Direct Debits to pay your utility bills 

If you’re new to the country, paying bills in your name via Direct Debit is one of the simplest ways to grow your history. This helps to prove your address and shows that you’re able to make regular payments. 

2. Register to vote or, if you can’t, submit a notice of correction

When lenders run credit checks, they review your report for proof of your identity and your address. Registering to vote can be great for proving that you’re a resident in the UK which can help you strengthen your report. 

Did you know that if you are a qualifying commonwealth citizen living in the UK, you can register to vote in both general and local elections? And that EU citizens residing here can also vote in local elections?  

If you can’t register to vote in the UK, you might find it helpful to submit a “notice of correction” to the CRAs. These short, written statements can be added to your report to explain any personal situation that could affect how you look to lenders. Creditors might sometimes consider these — alongside the rest of your file — when they run a credit check but it’s not guaranteed. 

You could submit a notice of correction to explain why you’re unable to register to vote, and to reassure lenders that you have leave to remain, settled status or an ongoing citizenship application. If you do, it’s worth sharing the notice with each of the main CRAs as lenders don’t always check with every agency.

3. Discover simple, proven ways to build your credit score with Loqbox 

A Loqbox membership can help you strengthen your report, grow your savings and learn more about the UK system. It’s simple and automated so you can focus on settling into your new home in the UK.