International credit rating?
Let's say someone lives in Japan and takes out a loan on a car and has a couple of credit cards. This person always makes the payments on time on both the loan and on the cards. (So basically, the person has a good credit rating in Japan.) Eventually the car is paid off and the person has no outstanding debt. Then one day the person decides to move to the United States. Upon arriving in the United States, will that person's good credit rating from Japan follow him or her? Or will it be that because none of those transactions occurred in the United States that as far as the United States is concerned, that person simply has "no credit"???
Public Comments
- I honestly don't think Japan does credit checks, and I know that there is no such thing as an "international credit check" When I lived in Japan, you didn't need credit checks to get cell phones, etc.
- Credit reporting agencies such as Equifax, TransUnion, Northern Credit Bureaus and Equifax, and others only collect information from creditors about consumers’ financial experiences in a particular country and is seperate from other countries credit reporting agencies and vice versa. There are many reasons why credit reports do not transfer from one country to the next. The main reason behind this is because of differences in national laws. Every country, and the European Union, has its own laws governing credit reporting and information use. In addition to legal barriers, there are significant contractual complications around how businesses in other countries would access reports, report and update information and respond to consumer disputes. There also are a number of technical issues around how information is collected, stored and shared that further complicates transferring your credit report.
