Will Your Credit Score Follow You If You Move Abroad?
Written by
Yaël Bizouati-Kennedy
Edited by
Maria Concepcion
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Maintaining a solid credit score is important as it can facilitate life in many ways and impact everything — such as your ability to take loans — and the rates you will get. It is also an essential part of American life.
While every country has its own credit system and scoring, moving overseas is by no means parting ways with your American credit history, whether good or bad, especially if you have plans to return to the country.
Your debt will not magically disappear when you move to another country, and any debts you owe will remain active. And if you’ve taken on debt in the U.S., you’re contractually obligated to pay it, regardless of where you choose to live, Experian noted.
“Living abroad can make it more difficult for creditors to find you and collect on your debt. But if you avoid them long enough, you could be dealing with a lawsuit, tax issues and more. And if you return to the U.S. at some point in the future, your financing options will be severely limited,” added Experian.
Another detrimental consequence: you could take a severe hit to your credit score, complicating your return to the States.
And if you want to maintain your credit score while you’re overseas, there are a few steps you can take.
For instance, inform your credit card issuer of your trip so it doesn’t cancel your card and keep U.S. bank accounts and credit cards open, and in good standing, according to Capital One.
Capital One also recommends using the card for transactions to keep it active and making on-time payments.
“An easy way to do this is to set up autopay for recurring bills, like mobile phone service, since this ensures your card has regular activity and that your bill is never late,” Experian noted. “You can also use the card for subscriptions you’ll continue using abroad, like Netflix or Spotify, to keep your card in use. Just avoid carrying a balance so you don’t pay interest unnecessarily.”
In addition, you will need a U.S. address to keep your existing cards and maintain your U.S. bank account or other financial accounts.
“One option is to ask a relative or close friend if you can use their address for your financial accounts while you’re overseas,” added Experian.
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