What happens to my credit score when I leave the country?

Your Credit Score and International Relocation: What You Need to Know

When relocating internationally, many individuals wonder how it will affect their credit score. The answer is: it won’t. Your credit score is solely based on your financial history within the country where you established it.

Credit Bureaus and Residency

Credit bureaus, the organizations that calculate credit scores, track financial activity within a specific geographical area. When you relocate abroad, your credit history remains with the bureaus in your original country of residence. The bureaus do not have access to your financial information in your new country, so your credit score in your home country will remain unchanged.

Maintaining Good Credit Habits

While your credit score may not be affected by your international move, it’s essential to maintain good credit habits regardless of your location. Paying your bills on time, keeping your debt utilization low, and avoiding excessive credit inquiries will help you maintain or improve your credit score.

Building Credit in a New Country

If you plan to stay abroad for an extended period, you may want to consider building credit in your new country. This will be necessary for obtaining financial products, such as loans or credit cards, in your new location.

To build credit, you can:

• Open a local bank account and establish a payment history on a checking or savings account.
• Get a credit card issued by a local bank and use it responsibly.
• Make regular payments on utilities and other recurring bills.

Additional Considerations

• Check your credit report: Before leaving the country, obtain a copy of your credit report to ensure it is accurate and up-to-date.
• Notify creditors: Inform your creditors of your upcoming move and provide them with your new contact information.
• Consider a credit monitoring service: This service can alert you to any changes or potential issues with your credit report.

In summary, your credit score remains unchanged when you leave the country. However, it’s crucial to maintain good credit habits and consider building credit in your new country if you plan to stay for an extended period. By following these tips, you can ensure that your creditworthiness remains strong, regardless of your location.