When you’re heading to the Queen’s country you have to have your finances in order. This includes understanding how to establish and build credit as a new expat in the UK.
Your credit score is a statistical tool to predict the likelihood of you defaulting on your credit obligation. There are a dozen different credit scores built with algorithms to predict the likelihood of default on a particular type of credit (credit card, car loan, car lease, etcetera). The credit score is a tool to allow increased retail consumption.
Credit in the United Kingdom is handled by three agencies cleverly called Credit Referencing Agencies (CRA’s). TransUnion, Equifax, and Experian are the three most commonly used. Experian and Equifax give you a credit score that can range between 300 to 850 and TransUnion gives a rating between 1-5, depending on their specific criteria and system tracking.