- A credit score is a number, used in countries like the US and Canada, which aims to predict your likelihood to meeting financial obligations like paying back a loan.
- Having a low credit score can make it harder and more expensive to get a mortgage, for example.
- Mant countries do not have a credit score system like the US, instead only tracking negative credit marks rather than tracking positive ones.
In the US, a good credit score can feel like a key determinant of success. It defines how good an interest rate you can get on a car loan or mortgage, the quality of credit card you can get approved for, or if you'll get approved for any credit at all.
The better your score, the better the perks. A bad score can become a black mark that leads to missing out on the home you want (credit checks are a common aspect of apartment applications), higher car insurance rates, or even difficulty getting a cell phone, according toNerdwallet.
But as monolithic as the credit score seems, many countries in the world handle credit very differently - with many having no credit score system at all.
Here's how 10 countries deal with credit, and how they score your financial worth.