Comparison Between American & European Credit Scores


Everyone knows that a person's credit score can have a big impact on the quality of his life. Unfortunately, understanding your credit score, including all of the factors that go into determining it and what can impact it, can be difficult and complicated. And the confusion is only exacerbated when people are relocating abroad and realize that their credit score cannot relocate with them.

American Credit Score

  • While banks, credit companies and other financial institutions are generally mum regarding the precise measures used to determine a person's overall credit score, there are generally five separate critical factors that are taken into consideration. These factors are repayment history, outstanding debt, length of credit history, state of financial accounts and the different types of credit you have had. Each one of these factors has a predetermined weight on your overall credit score, and in order to keep your credit at an optimum level, it is imperative that proper attention be paid to them. Generally, a person's repayment history has the greatest impact on her credit score, so it is most important that people make their payments on time to keep their credit scores high. Any payment that is more than 30 days late may reflect negatively on your credit score.

European Credit Score

  • The single biggest thing that Americans relocating to European countries should keep in mind is that their American credit score is not transferable. You will essentially start life in Europe with a clean slate. Additionally, credit scores do not transfer from one European country to another, so if you move, you will have to rebuild your credit every time. Your credit score in Europe will be factored similarly to your American credit score, with such factors as derogatory items, public records, late payments and revolving and installment credit accounts. This means that in Europe, as in America, in order to maintain good credit standing and a high credit score, it is necessary to have a satisfactory repayment history and debt-to-income ratio. While each country's specific credit reporting and collecting practices are different, it is always a good idea to do your best to keep your accounts in good standing.

What You Can Do

  • The primary reason that credit scores are not global has to do with protecting consumer privacy. This means that not only does your American credit score not count in Europe, it cannot even be retrieved by lenders there. If you are relocating to Europe, it may be in your best interest to maintain a hard copy of your American credit report and score. Additionally, you may want to retain your American credit cards and credit lines until you secure new credit lines in Europe.


Promoted By Zergnet



You May Also Like

  • How to Get a Credit Card in Italy or Europe

    Go to Pay the required fee and obtain your FICO credit score from Experian, Equifax and Transunion. European credit lending institutions...

  • Will My Credit Card Work in Europe?

    Most credit cards are part of an international system that allows consumers to use credit cards in any given country. Contact the...

  • Understanding Credit Report Scores

    Credit report scores are based on information from three credit reporting bureaus. The three bureaus use information from banks and credit agencies...

  • How to Run Credit Checks on Prospective Tenants

    Find out about the financial responsibility and history of prospective tenants by running credit checks on rental applicants. Follow these few steps...

  • Understanding Your Credit Score

    Credit scores are developed by three separate credit reporting bureaus by interpreting data on payment history, amount of credit available and job...

  • History of the Euro Currency

    In 1999, several European nations adopted a single currency called the euro to strengthen and stabilize the continent's economy. While some goals...

  • How to Use American Credit Cards in Canada

    American credit cards are used and accepted throughout the world, including in Canada. This is because the credit card providers are large...

Related Searches

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!