It may only be a dream or fantasy to have the concept of a global credit score. But what if the world would be integrated in to a single credit scoring model or scheme? Although a lot of people debate on such topic, having it planned or even mobilized in the near future is still not a possibility.
At present time, when a person says that he/she is planning to cross another border to another country or to migrate to another country, it would also mean that creating a new credit history in that new country will also be there. And thus, if there is a scoring scheme or model that is used worldwide, moving or changing address, specifically country based, will also move your current free credit report or history to that new location of address.
Credit bureaus in the United States are continuing to launch or establish new credit scoring schemes or models to other countries, but still a credit scoring scheme that will be applicable to all is still a fantasy that is yet to become real.
FICO, the United State’s leading credit score company, and TransUnion are now introducing credit scoring schemes in other nations, respectively. The FICO for instance, has versions of credit scoring model in about 20 countries. While the TransUnion introduced the first standard credit score in Honduras, called the TransUnion Score Predictivo. And also the TransUnion, has joint Project with Credit Information Bureau India Limited, and established CIBIL TransUnion Personal Loan Score, which is known as India’s first and only personal loan score.
And though such expansion or progress when it comes to countries that are now having their own credit scoring scheme, experts are still saying that it is impossible to have a single scoring scheme world wide. Some experts are even definite when they are rejecting this concept.
And with regards to the global credit scoring scheme, Simon Harben, Experian Decision Analytics’ head of global bureau analytic says that, “Dependence on the local bureau score rather rules out the idea of a global credit score.” And Chet Wiermanski, group vice president of global analytics with credit bureau TransUnion, although he usually says never say never, he still don’t think that he can see such a global credit scoring scheme. He said that, “Not in my lifetime, and I’m a fairly young man.”
And why is it that when it comes to global scoring scheme, there are a lot of reasons that it is impossible to be established? It is because different nations or different group of people have different culture that value different traits in their own different ways. And also rules and laws are affected and thus vary from place to place.
But there are others who somewhat believes that such a global scoring scheme can be attainable. Like Graham Platts of GDSLink Inc, who says that, “Of course we could see a global score used across nations, but it would not be as good as national scores.” Platts also said that, “However, people may go for it because they are willing to sacrifice a bit of predictive power (and hence, bad debt) in return for ease of use, consistency, speed to market, for example.”
Some may say it is impossible, some might say it is possible. But one thing is for sure, the future is still unknown, and to get there is the only way to know if things are really possible or not.
