Are you new to Spain? Here’s our view on developing your credit history and utilizing the most accepted credit cards for ex-pats in Spain if you want to learn all there is to know about credit cards available there.
Are you looking for a fresh start in Spain? Many ex-pats are already swooning over its excellent Mediterranean climate. However, another component of the relocation could make you dizzy: ensuring your finances in your new nation are in order.
If you’re considering relocating to Spain or have already relocated there, you may be considering using a credit card in your new nation. However, it may be more complicated than you think without a credit history in Spain.
But what to do people who need money and aren’t live in Spain? For example people who live in South Carolina, USA? What loan options do they have? They have many options in Paydaychampion site and one of them is a payday loan. Characteristics of payday loans in South Carolina you may learn on paydaychampion.com.
What kinds of credit card fees should I be aware of?
An annual fee is charged.
You may get credit cards in Spain with no issuance or maintenance costs. However, this does not rule out the possibility of incurring yearly fees while using other credit cards.
There is no right or wrong decision when selecting a credit card based on the yearly fees.
It all comes down to what kind of incentives or features you want for your everyday credit card transactions.
Fees for international transactions
As an ex-pat, you may need to transfer funds across nations and currencies.
Most credit cards charge 3% of the purchase price for such international transactions. It may not seem much at first, but you’ll see what we’re talking about as it accumulates.
So keep an eye out for credit cards that charge international transaction fees and see whether the perks or benefits of such cards are sufficient to offset the costs.
You may also avoid foreign transaction fees entirely by sending money abroad using an international money transfer.
As an ex-pat in Spain, what do I need to apply for a credit card?
Of course, the criteria may vary by bank, but there are a few fundamental requirements that you must meet before applying for a credit card as an ex-pat in Spain:
- You must be at least 18 years old to participate.
- You must be a Spanish permanent resident. Your permanent residence visa will come in handy in this situation.
- You must have your NIE (Number of International Identification) number. For foreigners in Spain, it’s a tax identity number.
What is the structure of the Spanish credit system?
Banks and other financial organizations monitor all of your loans, risks, and credits to determine your creditworthiness in Spain.
Finally, their choice is based on whether or not you are on a terrible credit denylist. So, to maintain a decent credit score, all you have to do is stay off the poor credit denylist, no matter what occurs.
After you’ve been placed on the denylist, you won’t be able to remove your name until six years have gone or you’ve paid off your debt in full.
What are my options for establishing credit in Spain?
In Spain, you won’t be able to receive a credit card in the blink of an eye. No, you’ll need to demonstrate that you’re capable of repaying your loans in full and on schedule.
You’ll be disappointed if you try to brag about your credit history before Spanish banks and credit card providers, no matter how fantastic it has been.
In general, the financial history you’ve built up in a nation remains in that country. As an ex-pat in Spain, you can only get credit cards if you have a strong credit history in Spain.
But, exactly, what constitutes a good credit score? Various credit agencies rate your creditworthiness differently, but you can obtain a rough understanding of the ratings.
For example, a credit score of less than 400 is considered low, but a credit score of 700 to 900 indicates that you have a strong credit history.
When it comes to establishing credit in Spain, setting up utility accounts is a great place to start. Internet accounts, postpaid phone contracts, power accounts, water accounts, and so on are examples of these accounts. Ensure you never forget to pay your utility bills and always pay the whole amount due.
If you took out any loans from a Spanish bank, pay them back within the agreed-upon timeframes.