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Thursday, June 4, 2015


Axis Capital Group Business Funding Jakarta Review: Credit Scoring in Different Countries


            Credit score isn’t like the existing sports scoring nowadays. As the 2016 Rio de Janeiro Olympics near, many of us will be rooting to our favorite sports and team members bearing each of our nations’ flags. But talking about credit score, which country do you think have the highest credit reporting system aside from America?

            According to Axis Capital Business Funding Group review, a credit source for small business owners operating in over ten states in America, many countries in public and private credit reporting agencies exist and were often initially created to help monitor risk in banking sector. Privacy laws often prevent those registries from sharing information with private credit reporting agencies.


            Germany's system is "quite comprehensive" though the information reported predominantly comes from banks. Their major reporting agency is SCHUFA. Thanks to recent regulatory changes, Germans can have late payments deleted from their credit files as long as the original amount was less than 2000 Euros and the bill was paid within six weeks. Germans can request free copies of their credit report once a year.

            Positive information is not reported on consumer credit reports in Australia. The government doesn’t allow it. But they are trying to at least report balances. Reviews say that lenders are only relying on applicants to truthfully report balances on other accounts.

South Africa

            South Africa has a robust credit reporting system, much like in the UK, with Experian, TransUnion and Compuscan as the main credit reporting agencies. But the rest of Africa generally has very poor or non-existent coverage, and changing that is a daunting challenge.

Malaysia, Singapore, Hong Kong, Jakarta, Indonesia

            Much to the surprise of many, Asia has leapfrogged the U.S. and the UK in terms of technology and more comprehensive database.  In those countries, they have combined consumer credit reporting and commercial credit reporting which is specifically valuable for SMEs (small and medium enterprises) trying to get access to credit.


            China has a public registry originally developed by the People's Bank of China. It has been very difficult for the private credit bureaus to establish themselves in a country where there is no legislation to protect themselves. Those who live in Japan, however, had better maintain a good reputation and relationship with their banker. Consumer credit is underutilized, and credit data is vertically siloed. Some credit is even made in a name’s basis.


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