If you are planning to move to Italy and start a new life, you may be wondering what happens to your credit score and if it really matters.
You may have spent years working to increase your credit score, paying off all your debts, paying off loans, and building up savings.
Now, as you prepare to move to Italy, the hope is that your excellent credit score will make the transition easier.
Does the credit score in Brazil remain with you?
Unfortunately, the answer is no. Generally speaking, credit scores are not transferable between countries, yet.
Each nation has its own criteria for assessing borrowers' ability to repay, and this can be particularly frustrating for Brazilians, who know that building a good credit score is essential.
Even with the growing number of people choosing to live abroad, there is still no global credit score that tracks individuals around the world.
According to the bank Capital One: “Global credit scores don’t exist yet. Some credit bureaus, like Experian, operate in multiple countries, but privacy laws vary between nations, which often prevents these companies from sharing credit information across borders.”
This means that when you move to Italy, you will have to start from scratch to build a credit score in the new country.
How are credit scores calculated in Italy?
In Italy, credit scores are managed by credit reporting agencies, such as Centrale rischi of the Banca d'Italia (Bank of Italy Risk Center) and Centrale Rischi Finanziari SpA (CRIF). These agencies collect and archive financial and credit information from people residing in Italy, as well as Italian companies.
Generally speaking, a person's creditworthiness is classified using an alphabetical scale. Individuals with excellent credit scores receive a rating AAA, while those considered high risk receive a classification C.
Build a good credit score in Italy It is similar to the process in other countries. The Italian bank IBL Bank states that paying bills on time, having few loans and maintaining a stable financial situation are factors that contribute to building a good score.
Do you really need a credit score in Italy?
There are some situations where a good credit score may be necessary in Italy, especially if you plan to stay in the country long-term.
One of these situations is obtaining a real estate financing. Before granting the loan, Italian banks will investigate your credit score based on several factors, such as the amount you receive monthly in your bank account.
Most banks, such as Intesa Sanpaolo, also checks credit scores before issuing credit cards.
However, generally speaking, credit checks in Italy are not as important as in other countries.
National bank IBL Banca mentions in a blog post that credit scores in Italy don’t carry the same weight as in other nations. For example, while in Brazil you’ll be subject to a credit check when renting an apartment, in Italy, proof of income and bank statements are usually enough to prove that you’re eligible to rent a property — and in some cases, you may not even need to provide them. (Photos: Depositphotos)
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