Expats often want to get credit when they move to a foreign country. They think having a foreign credit card is not only cool but will help them avoid foreign exchange fees and other international transaction fees. ⠀
Is getting credit in a foreign country a good idea? Here are 5 things to consider before obtaining credit in a foreign country. ⠀
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1. Do you need more debt? What is your current debt level in your home country? Do you plan on being in the country long enough that you will need credit? ⠀
2. Do you understand the language and local credit rules and regulations well enough to apply for credit and handle any issues or problems you may have? ⠀
3. What are your options for repayment? (i.e. balance in full each month, a finance charge for not paying in full each month, and what is the interest rate on the finance charge? Is it variable or fixed?)⠀
4. What are the ramifications for not paying your debt? In some countries, you can be thrown in jail for not paying your debts. Is non-payment of debts reported to your employer? and will it affect your current and future immigration status and your ability to re-enter the country
5. Credit scores don’t travel. Will this local credit activity be reported to the credit bureaus in your home country?⠀