How International Students Can Build Credit Scores Abroad

Moving abroad for studies is an exciting experience but along with academics, international students also face financial responsibilities. One of the most important aspects is building a credit score, which plays a huge role in renting apartments, applying for loans, getting credit cards, or even securing certain jobs.

If you’re an international student wondering how to start building credit in a new country, this guide will walk you through practical steps to get started.

Why is a Credit Score Important?

A credit score is essentially your financial reputation. It shows lenders, landlords, and even future employers how reliable you are with money. A good score means you’re seen as trustworthy, while a poor or non-existent score can make simple things like getting a phone contract or renting an apartment much harder.

Credit Score Systems in Different Countries

Here’s a comparison of how major study-abroad destinations calculate credit scores:

Each country has its own scoring model. Your credit history in one country does not transfer to another, which is why students need to start fresh abroad.

How to Build Credit Score as an International Students

1. Open a Student Bank Account

Start by setting up a local bank account. This creates a financial record in your new country and makes it easier to apply for credit products later.

• USA: Banks like Chase and Bank of America offer student checking accounts.
• UK: Barclays, HSBC, and NatWest provide international student accounts.
• Canada: RBC, Scotiabank, and TD Bank have special newcomer/student packages.

2. Apply for a Student Credit Card

Many banks offer student credit cards with lower limits. Use it wisely—make small purchases and pay the balance in full each month.

• USA: Discover it® Student Cash Back and Capital One Journey Student card are popular.
• UK: Student credit cards are harder to get, but banks like HSBC may offer one if you have a UK bank account and proof of income.
• Canada: Scotiabank SCENE+ Visa for Students and BMO Student CashBack Mastercard are great starter options.

3. Become an Authorized User

If you have a relative or trusted friend abroad, you may be able to become an authorized user on their credit card. Their positive history can help build your score while you gain experience managing credit.

• USA: Being added to a parent’s or friend’s credit card can start your credit journey.
• Canada: Most banks allow adding authorized users with no extra fees.

4. Pay Bills on Time

Whether it’s rent, utilities, or mobile phone bills, always pay on time. Many providers report payments to credit bureaus, which boosts your score over time.

• UK: Mobile contracts with O2, EE, or Vodafone can contribute to your credit history.
• Canada & USA: Internet, electricity, and phone bills can all count if reported.

5. Use Rent-Reporting Services

Some services allow you to report your rent payments to credit agencies. Since rent is often a student’s biggest expense, this is a simple way to establish a solid credit history.

• USA: Experian RentBureau and RentTrack.
• UK: CreditLadder and Canopy report rent to Experian and Equifax.
• Canada: FrontLobby and Borrowell can report rent payments.

6. Keep Credit Utilization Low

Try not to use more than 30% of your credit card limit. For example, if your limit is $500, aim to keep your balance under $150. This shows lenders that you manage credit responsibly.

7. Avoid Too Many Applications

Each time you apply for a loan or credit card, a “hard inquiry” is recorded. Too many applications at once can hurt your score, so apply only when necessary.

Long-Term Benefits of a Good Credit Score

• Easier approval for rental housing
• Better chances of getting loans or mortgages in the future
• Lower interest rates on credit products
• Increased trust with financial institutions

FAQs