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cj.23 · 27th July 2008, 08:29 AM

We just touched on this in the Religious Education thread, and it's something that interests me and I have personal issues resulting from. Why do credit ratings not transfer internationally?

The best known example is the fact that UK and US credit ratings are completely incompatible, despite often being held by the same companies like Equifax. Yet having an excellent credit history and rating in one nation becomes completely irrelevant if you move across the pond, or even to a different part of Europe. I'm guessing the criteria employed are very different, but why, and why can the same data not just be run through the other criteria to produce a credit score for the other country?

Anyone know? I have not googled I am afraid.

I grow lazy and trust in the excellent knowledge found here!

cj x

balrog666 · 27th July 2008, 11:18 AM

Originally Posted by cj.23

We just touched on this in the Religious Education thread, and it's something that interests me and I have personal issues resulting from. Why do credit ratings not transfer internationally?

The best known example is the fact that UK and US credit ratings are completely incompatible, despite often being held by the same companies like Equifax. Yet having an excellent credit history and rating in one nation becomes completely irrelevant if you move across the pond, or even to a different part of Europe. I'm guessing the criteria employed are very different, but why, and why can the same data not just be run through the other criteria to produce a credit score for the other country?

Anyone know? I have not googled I am afraid.

I grow lazy and trust in the excellent knowledge found here!

cj x

Equifax, et al. do not "hold" your credit rating although they may issue special purpose "scores". Their primary function is to maintain your credit history and credit scoring by other parties like banks, credit card companies, credit issuers.

In fact, in the US, while your "credit scores" are (usually) freely available to you, the data/formulas used to compute them is not.

paximperium · 27th July 2008, 11:43 AM

Originally Posted by balrog666

Equifax, et al. do not "hold" your credit rating although they may issue special purpose "scores". Their primary function is to maintain your credit history and credit scoring by other parties like banks, credit card companies, credit issuers.

In fact, in the US, while your "credit scores" are (usually) freely available to you, the data/formulas used to compute them is not.

Exactly. Each company, Experian, Equifax, Transunion etc. has a different scoring formula. Their is no central credit company in the US. All these companies do is track your credit.

Since they do not have the ability or access to foreign bank records etc. they are unable to calculate a foreigner's credit rating.

Francesca R · 27th July 2008, 01:09 PM

Oh I thought this was about the ratings applied to sovereign debt . . . .

27th July 2008, 08:29 AM	#1
cj.23 Master Poster Join Date: Dec 2006 Location: Kadath in the Cold Waste Posts: 2,822	UK/USA Credit Rating We just touched on this in the Religious Education thread, and it's something that interests me and I have personal issues resulting from. Why do credit ratings not transfer internationally? The best known example is the fact that UK and US credit ratings are completely incompatible, despite often being held by the same companies like Equifax. Yet having an excellent credit history and rating in one nation becomes completely irrelevant if you move across the pond, or even to a different part of Europe. I'm guessing the criteria employed are very different, but why, and why can the same data not just be run through the other criteria to produce a credit score for the other country? Anyone know? I have not googled I am afraid. I grow lazy and trust in the excellent knowledge found here! cj x
	__________________ I'm an Anglican Christian, so I declare my prejudice here. Please take it in to account when reading my posts. "Most people would rather die than think: many do." - Betrand Russell My dull life blogged http://jerome23.wordpress.com

27th July 2008, 11:18 AM	#2
balrog666 Eigenmode: Cynic Join Date: May 2004 Posts: 2,545	Originally Posted by cj.23 We just touched on this in the Religious Education thread, and it's something that interests me and I have personal issues resulting from. Why do credit ratings not transfer internationally? The best known example is the fact that UK and US credit ratings are completely incompatible, despite often being held by the same companies like Equifax. Yet having an excellent credit history and rating in one nation becomes completely irrelevant if you move across the pond, or even to a different part of Europe. I'm guessing the criteria employed are very different, but why, and why can the same data not just be run through the other criteria to produce a credit score for the other country? Anyone know? I have not googled I am afraid. I grow lazy and trust in the excellent knowledge found here! cj x Equifax, et al. do not "hold" your credit rating although they may issue special purpose "scores". Their primary function is to maintain your credit history and credit scoring by other parties like banks, credit card companies, credit issuers. In fact, in the US, while your "credit scores" are (usually) freely available to you, the data/formulas used to compute them is not.
	__________________ A person who won't think has no advantage over one who can't think. - (paraphrased) Mark Twain Diversity--When all colors and creeds believe exactly as liberals want them to. Or Else! -Coyote

27th July 2008, 11:43 AM	#3
paximperium Penultimate Amazing Join Date: May 2008 Location: Silicon Valley-Stuck between Google and Apple Posts: 10,727	Originally Posted by balrog666 Equifax, et al. do not "hold" your credit rating although they may issue special purpose "scores". Their primary function is to maintain your credit history and credit scoring by other parties like banks, credit card companies, credit issuers. In fact, in the US, while your "credit scores" are (usually) freely available to you, the data/formulas used to compute them is not. Exactly. Each company, Experian, Equifax, Transunion etc. has a different scoring formula. Their is no central credit company in the US. All these companies do is track your credit. Since they do not have the ability or access to foreign bank records etc. they are unable to calculate a foreigner's credit rating.
	__________________ "The method of science is tried and true. It is not perfect, it's just the best we have. And to abandon it with its skeptical protocols is the pathway to a dark age." -Carl Sagan "They say a little knowledge is a dangerous thing, but it's not one half so bad as a lot of ignorance."-Terry Pratchett

27th July 2008, 01:09 PM	#4
Francesca R Girl Join Date: Nov 2006 Location: London EC1 Posts: 11,826	Oh I thought this was about the ratings applied to sovereign debt . . . .