The article gives a comprehensive overview of the 1996 research project A Comparative Study of Academic Credit Systems in an International Context commissioned by the German Federal Ministry of Education, Science, Research and Technology (BMBF). It provides background on upcoming reforms in German higher education, details the research methodology and the results of the research, and provides a description of the major categories of credit systems, reasons for their creation, geographical distribution in the world, the impact of credit systems on higher education systems, and the international compatibility of credit systems. The article concludes with policy recommendations the author provided at the request of the German Federal Ministry of Science and Technology, and demonstrates how the research results directly enter into the political decision-making process and are likely to be implemented.