How credit scoring works outside the US

Why countries have credit ratings

Sovereign credit ratings work like national credit scores, measuring a country’s ability and willingness to repay its debt. Moody’s, S&P, and Fitch are the major agencies assigning these ratings, which influence borrowing costs and investor confidence.

How to check your credit score

Contrary to popular belief, checking your credit score doesn’t hurt your credit. Many credit card companies show your score when you log into their app online, but there are other ways to check it.

Privacy concerns in the credit scoring system

Because credit scores use a lot of personal information (such as whether or not someone makes credit card payments on time), some worry their privacy is being compromised in the data collection process.

Some argue that credit reporting promotes economic inequality in the US

Although today's credit scoring system is much more objective than, say, the credit assessment system of the 1700s, some argue there's still room for improvement, with critics saying the current system is still discriminatory. For example, while mortgage payments have long been automatically reported to credit bureaus, rent payments (the primary housing expense for most lower-income Americans) historically haven't been reported unless a payment was missed.

How the credit scoring system could change

Factoring rental payments into credit scores is just one proposed change some have suggested making to today’s credit scoring system to cater the system to renters as well as homeowners.

What your credit score actually means

The modern iteration of credit scores hasn’t been around for that long—it was invented just a few decades ago, in 1989. This video outlines how the credit scoring system has evolved and become more complex since then. Plus, it explains what your credit score actually means, what factors impact your score, and more. Watch it here.

How is credit reporting regulated in the US?

While the three main credit bureaus and the credit scoring companies aren't government entities, they are subject to certain US government regulations, such as the Fair Credit Reporting Act.

How VantageScore and FICO’s algorithms calculate credit scores differently

VantageScore and FICO weigh various factors that determine your credit score differently. For instance, while your payment history makes up 40% of your VantageScore, it only makes up 35% of your FICO score.

What are business credit scores?

Businesses have credit scores the same way individuals do—with a few key differences. For one thing, business credit scores range from 0 to 100 instead of 300 to 850, and are based on factors such as bankruptcy and bill-paying habits.

Most people will probably never hit a perfect 850 credit score for a variety of reasons, including the fact that younger borrowers are at a disadvantage as credit history length accounts for 15% of one's score.

See how a good VantageScore and a good FICO score can differ

While VantageScores and FICO scores both offer credit scores between 300 and 850 and consider the same core factors, they weigh those factors differently, and specific numbers can have different meanings depending on the type of score.

How to rebuild your credit score

It's easy to let your credit score slip without realizing it. Checking your credit score and getting to know what's on your credit report are the first steps to getting to the "700 club," or "good score" range, according to one financial expert.

Five primary factors determine your credit score

Your credit history is used to calculate your credit score. It includes information such as how often you miss payments (on credit cards, for instance), the types of financial accounts you hold, how long you’ve held those accounts, and more.

How FICO and VantageScore weigh factors in credit history differently

VantageScores are sometimes lower than FICO scores because the algorithms that calculate the two scores weigh the factors that influence them differently. For instance, VantageScores typically weigh payment history more heavily than FICO scores.

Kal Penn explains credit scores

Kal Penn, the actor who played Kumar in the “Harold and Kumar” films and appeared in shows like “How I Met Your Mother” and “House,” just so happens to know a thing or two about how the credit scoring system works in the US.

What is VantageScore?

The three major credit bureaus introduced the VantageScore credit score in 2006 as a competitor to FICO. It’s calculated slightly differently from a FICO score, though just like the FICO score, it’s widely used by lenders.

Consequences of a bad credit score

A bad credit score can lead to spending roughly $100K more on a typical mortgage. Poor scores also prevent you from getting certain jobs, apartments, and more, hindering you from building wealth in the long term.

The three major credit bureaus were created in the mid-1900s to sort local credit reporting into national databases

In the 1800s, credit bureaus went into business to help lenders make decisions. But today's three major credit bureaus, Experian, Equifax, and TransUnion, didn't become the industry leaders they are today until the 20th century, around the same time FICO was founded.

An explanation of hard credit checks vs. soft credit checks

Some buy now, pay later services do a soft credit check rather than a hard credit check, like credit card companies would do when someone applies for a card. While hard credit checks can impact your credit score, soft pulls typically do not.

One in five Americans has an error on their credit report, according to the Federal Trade Commission

In 2026, four US senators sent letters to two of the nation's major credit bureaus (TransUnion and Experian) after an investigation revealed that they were fixing fewer errors on consumers' credit reports.

Credit reporting's earliest origins in the 1700s resemble a game of telephone, with rural merchants asking their most esteemed neighbors to vouch for them to sleuthing urban lenders.

Credit reporting started as a service for businesses rather than consumers

In the 1700s US economy, consumer credit reporting wasn't necessary. A loan to a farmer for agricultural supplies, for instance, would inevitably help them purchase both personal and business items.

Do student loans affect your credit score?

While student loans can impact your credit score, that's not necessarily a bad thing. Repaying the loan on time can strengthen your credit score, whereas paying late can hurt it. To find out more about how student loans can impact your credit score, read this article.

How to get a copy of your credit report

By law, it's possible to get a free credit report once each year from Equifax, Experian, and TransUnion, the three major credit bureaus. The US government recommends using AnnualCreditReport.com to request these reports, as it's the only website authorized by the federal government to provide the legally mandated free reports.

Why there are microchips in credit cards

Credit cards have evolved significantly since their invention in 1950, but security lagged in the US for years. Despite handling only a quarter of global transactions, the US once accounted for half of all credit card fraud. The 2013 Target data breach helped push the adoption of chip cards, reducing fraud but shifting risks to online scams.

Credit scores seriously suffer when individuals file for bankruptcy, and there’s no easy fix

Those who file for Chapter 7 must wait 10 years before the bankruptcy is removed from their credit report. For Chapter 13, the wait time is seven years.

The US lags behind other developed countries in math and science scores

The Programme for International Student Assessment, administered every three years by the OECD to 15-year-olds, scores US students below the OECD average in math (465 vs. 472) and only slightly above average in science (499 vs. 485). These figures place US pupils in the lower half of developed nations.

See if you can maintain a perfect credit score with this game.

Although credit unions offer many of the same services as traditional banks, they differ in that credit unions operate with not-for-profit status and are run by and for their members.

Credit card issuers determine your credit limit using your payment history, income, and more

Some credit card issuers also take your other payment obligations into account when determining your credit limit, such as the cost of your rent or alimony.

Credit unions, explained

Proponents of credit unions often point to the fact they’re not-for-profit cooperatives instead of for-profit businesses as a key selling point. This explainer dives into what this looks like in action—instead of pocketing the profits from interest rates, credit unions reinvest that money into the products and services they offer. For customers, this tends to create a more personal and community-oriented experience.

Selecting an embryo based on polygenic score is illegal in the UK, Israel, and swaths of Europe

Though their use for embryo selection is illegal in many locations, private clinics in the US may offer polygenic scores to inform embryo selection. The US Food and Drug Administration has not banned their use—instead the tests are regulated like supplements, meaning they are not regulated before they come to market but consumers can file complaints and then the agency may take action.

Rewards credit cards can offer points, travel miles, and more

For every dollar that a cardholder spends on a rewards credit card, they can also receive benefits such as cash back, airline miles, and more. For many, rewards are the reason they make so many purchases on credit cards in the first place.

Who actually pays for your credit card rewards?

In 2018, 92% of all credit card spending was made on a rewards card, which seems like a good deal to many who apply for rewards cards offering discounted flights, points, and more. But in actuality, the customers are often the ones who end up paying for the rewards in the grand scheme of things.

Why consumers could soon see the impact of buy now, pay later loans on their FICO credit scores

FICO rolled out its first-ever BNPL-specific credit scoring models in June 2025. While missed installments can now negatively impact a credit score, there's also the potential for on-time BNPL installment payments to help boost scores.

While studies have shown that voter fraud in the US is extremely rare, its elections are considered the 35th fairest in the world according to the 2025 Free and Fair Elections Index—a list topped by Belgium and Norway.

Are credit unions really worth it?

Credit union perks sound great on paper. They promise better interest rates and competitive customer service. But does this really translate to financial benefit for members? A new report dives deep into transaction data and answers with a resounding “yes.” Credit unions yield benefits of $179 per member or $376 per household. Dive deep into the data and read the report here.

In the US, you must actively sign up to donate your organs

The US has an opt-in donation system for organ donation—meaning people must provide consent to proceed with any donation. Locations including Spain, the United Kingdom, and Argentina have an opt-out donation system, which means individuals are presumed to be donors unless they actively refuse consent.

Credit limits can be lowered as well as increased

Some common reasons for someone's credit limit being lowered include missed payments, an inactive account, and more.

US women got the right to open a credit card in their own name in 1974

Before that year, banks in the US were legally allowed to deny women credit or charge them higher interest if they failed to get a male cosigner.

Most of Netflix's subscribers are outside the US

Accordingly, each year, Netflix releases an expansive slate of international shows and movies to subscribers worldwide, including hits that crossed over to the US, like "Squid Game."

Five steps to start your credit union journey

Once you’ve decided you want to start banking with a credit union, you’ll need to fill out an application. This will ensure that you meet all of the institution’s membership requirements. You’ll need to hand over basic information like your name, address, date of birth, Social Security number, and your driver’s license. This tutorial walks you through the process so that you can make your first deposit in no time.

Master the banking basics

Before deciding on a credit union, it’s important that you understand the basics. That way you can know exactly what’s happening with your hard-earned money behind the scenes. Flip through these flashcards to make sure you understand key terms like “deposit” and “checking account.” Then, you can read up on top banking products and start to find a credit union that works for you. Click here, then scroll down the page to find the cards.

Financial institutions check for lots of things before authorizing a purchase

Before authorizing a purchase, card issuers consider whether or not the cardholder has a high enough available credit limit to make the purchase, where the purchase is being made in order to reduce fraud, and more.

Listen to a podcast episode that goes inside the 2017 Equifax credit bureau hack

This podcast episode details a 2017 credit bureau hack in which Equifax data about millions of Americans was compromised. It dives into the history of credit bureaus, specifically how they became legally allowed to access Americans' financial information without Americans actually volunteering it themselves.

Why financial literacy education in the US sucks

If you don't remember learning anything about basic financial literacy in school, you're not alone—that's the common sentiment among those who have passed through the American school system. This video explains the history of financial education in the US and points out what can be done in the future to make the financial lessons children learn in school stick with them past recess. Watch it here.

Are credit unions living up to DEI promises?

Credit union insiders often say their institutions better serve minority bankers through a combination of a not-for-profit ethos and community focus. However, a recent probe found that the largest US credit union rejected more than half of all Black applicants for conventional mortgages. To dive deep into Navy Federal Credit Union’s mortgage practices, read this journalistic investigation.

Managing too many credit cards can be costly if they have annual fees

However, canceling cards must be strategic if it becomes necessary, as it can negatively impact your credit score. Before canceling, experts suggest asking if it's possible to downgrade to a no-annual-fee version in order to keep the account open, thus preventing potential hits to your credit score.

16 credit unions with almost no membership requirements

One of the hallmarks of credit unions is that they tend to be exclusive. For instance, one of the largest credit unions only does business with Boeing employees. However, this roundup introduces 16 credit unions that have practically no membership requirements. Interested customers may need to guarantee $5 minimum deposits and in some cases, make a donation to an affiliated charitable organization.

Visualize the 5,000-year history of consumer credit in one infographic

Consumer loans for agriculture were likely first used around 3500 BCE, but modern consumer credit took many more centuries to be established. England's credit reporting system, for instance, dates back to the early 1800s when a group of English tailors began swapping information about customers who failed to settle their debts.