Do you lose your credit score if you move abroad?

Moving Abroad: Navigating Your Credit Score

Relocating internationally can raise concerns about the fate of your credit score. However, moving abroad does not automatically erase your U.S. credit history. Your credit score remains relevant regardless of your new residence, particularly if you anticipate a future return to the United States.

Sustaining Your Credit Profile

Even while living abroad, maintaining a positive credit profile is beneficial. A good credit score can impact various aspects of your financial life, including:

• Access to loans and credit cards
• Interest rates and fees on financial products
• Eligibility for insurance policies
• Employment opportunities

Maintaining Your Credit History

To preserve your credit history, consider the following steps:

• Continue making timely payments: Late or missed payments significantly impact your credit score. Set up automatic payments to ensure you don’t fall behind.
• Keep credit cards open: Closing credit cards can shorten your credit history, which can negatively affect your score. Keep your old cards open, even if you use them infrequently.
• Limit new credit applications: Making multiple credit inquiries in a short period can indicate financial distress and lower your score. Only apply for new credit when absolutely necessary.

Returning to the U.S.

If you return to the U.S., your existing credit history will be invaluable. Your score will be ready to pick up where it left off, without skipping a beat. However, it’s essential to note that your credit activity abroad may not be reported to U.S. credit bureaus, so it’s crucial to maintain your credit profile while you’re away.

Conclusion

Moving abroad does not erase your U.S. credit score. By understanding the impact of relocation on your credit and taking the necessary steps to sustain your credit profile, you can ensure that your financial reputation remains intact, both while living abroad and upon your return to the United States.