It does happen in China but that doesn't mean it will happen here. Just because a totalitarian regime decides to do something doesn't mean western democracies will automatically copy it, e.g. I can't remember the last time we had a "re-education" camp or act of genocide in my town, probably not in my lifetime.
Social credit is the system in China where each individual is monitored. It's like a credit score, someone who gets a good degree will gain points, someone who is unproductive, e.g. unemployed or disabled, will lose points. Volunteer for the government, score goes up, play a lot of videogames, score goes down. Your brother is a senior official in the Communist Party, that reflects well on you, your father rapes someone, that reflects badly on you.
The idea is your score can then be used to determine how trustworthy and valuable you are to society and reward or punish you accordingly. Just as with having a good regular credit score you get cheaper interest rates and better offers, people with a good social credit score will get perks like discounted train fares, priority for healthcare. The idea is the country helps those who help the country, and hinders those who don't.
But no, it's not coming to the western world any time soon.