What Is Credit History and Why Does It Matter?

Credit history is a record of your ability to manage debt and repay loans. It includes things like:

• Credit card usage

• Loan repayments

• Utility bills

• Rent payments (in some countries)

In Europe, a good credit score can help you:

• Rent a flat without a guarantor

• Get a mobile phone contract

• Apply for a loan or mortgage

• Secure better job opportunities (some employers do background financial checks)

Do International Students Have a Credit History in Europe?

Typically, international students arrive without a local credit history, as credit profiles from their home countries do not carry over to European systems. Each European country operates its own credit system—for example:

• Germany uses Schufa

• France uses FICP/Banque de France

• The UK has Experian, Equifax, and TransUnion

• Finland uses the Asiakastieto credit register

As a student, you may not need credit immediately, but building it gradually is wise, especially if you plan to stay long-term.

Ways to Build Credit as an International Student in Europe

1. Open a Local Bank Account

Start by opening a student bank account with a reputable local bank. Many banks offer accounts with minimal fees for students and may offer small overdraft facilities, which can contribute to your credit profile if managed responsibly.

2. Apply for a Student Credit Card or Secured Credit Card

Not all banks will offer credit cards to international students, but some do if you have proof of income or a deposit. A secured credit card (backed by your own funds) is a safe way to start building credit.

A secured credit card, which is supported by your own deposit, offers a reliable way to begin building your credit history.

3. Pay Bills in Your Name

Put utility bills (electricity, water, internet) and rental agreements in your name if possible. In some countries, on-time payments for utilities are reported to credit bureaus.

4. Register for the Electoral Roll (UK-specific)

If you're studying in the UK and eligible, registering on the electoral roll can improve your credit score, even if you don't vote.

5. Use Rent Reporting Services

In some European countries, there are services that allow rent payments to be reported to credit bureaus. Ask your landlord or housing provider if this is possible.

6. Avoid Missed Payments

Even small unpaid bills can impact your credit. Set up direct debits for regular payments to avoid forgetting.

7. Stay in One Place Longer

Having a stable address and bank account for more than 12 months often improves your creditworthiness. Avoid frequent moves unless necessary.

Common Mistakes to Avoid

• Applying for multiple credit cards at once

• Missing payments or paying late

• Letting your account fall into overdraft without permission

• Not checking your credit report for errors

Can You Check Your Credit Score as an International Student?

Yes, most European countries allow individuals to request their credit report for free or a small fee. You can:

• In the UK, check via Experian, ClearScore or Credit Karma

• In Germany, request a report from Schufa

• In France, apply via Banque de France
  
  

Checking your credit score does not harm it, and helps you stay informed.

Building credit as an international student may take time, but even small, responsible steps can go a long way. Whether you plan to stay in Europe, move elsewhere, or return home, a good credit history is a valuable asset for your future.