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What Happens to Your CIBIL Score When You are Working Overseas?

25-Jan-2019 written by : FSI-Team

CIBIL Score When You are Working Overseas?

There are many reasons why people move abroad but better job opportunities are easily the most popular one. If you are a resident Indian who has moved to a foreign country for work, then you have to ensure that your debt and financial obligations back at home are accounted for and managed properly. But what about your CIBIL score? What happens to that when you are not living in India? In this blog, we discuss all that you need to know about it.

What happens to your CIBIL score when you move abroad?

Here is the thing- different countries have different credit rating agencies which calculate credit scores differently. Although there are some international agencies like Experian and Equifax that are operational in multiple countries, they may use different scoring methods and they don’t usually transfer your CIBIL report from India to their other systems. Besides, CIBIL is an Indian credit rating agency, which means that when you go overseas, it won’t have any relevance there and you would have to build a credit history from scratch based on the rating systems they have there.

Depending on how long do you plan to work overseas, you can manage your CIBIL score differently. Let’s look into both situations:

When You are Abroad and Settled There Permanently

If you are sure that you will be working in a foreign country for the rest of your life, then you needn’t worry about your credit score in India. This is will because you will need to start a new credit history overseas and your previous history won’t matter. That said, there are a few things that you can do to get a good credit rating easily and quickly in your new location:

  • If you have an account in an international bank which has branches in your new location, you can try transferring your Indian bank account there. Otherwise, if that’s not possible, you can just open a basic bank account which can help you get other products like credit cards to improve credit rating.
  • It’s not easy to get new credit cards when you don’t have a long history of financial responsibility, especially in a new country. However, they can be incredibly helpful in building a good credit rating in a foreign country. So, you can either get a secured credit card in which you have to deposit a certain amount to get the card, or otherwise you can get a standard credit card albeit with a high interest rate.
  • Once your credit history is old enough, you can also try getting a small personal loan as that can give a big boost to your rating easily.

When You are Abroad on a Temporary Basis

If you are working overseas only for a few years and plan to come back to India, then you can’t ignore your credit score in your home country i.e. India. You want your credit rating to stay intact when you come back so that you don’t have to face troubles getting loans and credit cards.

To protect your CIBIL score in India, take the following steps:

If you have any credit card debt, make sure that you repay it as soon as possible. Any debt that’s left will attract interest, and it’s not good for your credit score.

Don’t close your bank accounts and credit card accounts just because you think you won’t need to use them for a while. If you really have to, then choose the ones that are relatively new. This is because your oldest accounts are extremely important for your creditworthiness, and closing them can hurt it.

Keep an eye for identify theft. Since you are going to live in a foreign country for some time, it’s easy for you to ignore red flags about frauds and identity thefts related to your accounts in India. So, make sure that you check your credit report every once in a while, to see if there are any suspicious loan inquiries or transactions from your accounts.

Settling in a new country can be tough, but you can’t afford to ruin your credit history at any cost. So, always be careful with your finances no matter where you go.


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