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Can moving abroad affect your Credit Rating?

27th September 2018 Posted by: Student World Online

WHEN you’ve finished your studies and got your degree, you may well set your sights on a move overseas.

There are many reasons why graduates do this and it’s fair to say that living abroad – whether it’s for a long or short time – can bring you a wealth of amazing life experiences.

Beyond the excitement and joy though are more serious matters that you shouldn’t ignore, one being the impact such a move can have on your credit rating.

While this might not be the top of your priorities list, your credit score can be very important to your future and financial well-being.

Here’s what can happen to your credit rating when you move abroad.

Do I Still Have the Same Credit Rating?

When you move to a different country, the short answer is that your credit rating does not move with you.

If you were a native to the UK and you moved to another country, the credit agencies in the UK would continue to monitor your UK credit activity.

Your lack of activity in the UK over a prolonged period would see your score affected negatively.

In other words, the longer you go away, the longer the credit gap and the further down your score will fall if you are not using any credit facilities based in the UK.

Is My Overseas Credit Better?

You’ll be starting from scratch with your credit in your new location.

This can be problematic if you want to get things like loans, rental agreements, or phone contracts.

If you have a good credit score at home though, it’s worth having a record of this to show lenders, although this won’t guarantee you any favourable circumstance or approval.

Can I Still Improve My Native Credit Score?

While you’re away you can manage and monitor your credit score in your home country, rather than just leave it.

You can set up direct debits to manage repayments on any outstanding loans or finance you have and you can use your credit cards in your new country.

Make sure you pay them off and let the providers know you’ll be using them abroad.

It’s worth putting steps in place to manage your credit while you’re away to keep your financial future looking healthy for your return. 

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