International Credit Cards & Loans: A Comprehensive Guide

Borrowing money internationally may be complicated, but it can assist you in gaining access to more funds.

Acquiring an international credit card or loan from a foreign lending institution is more challenging than doing so from a domestic bank. Foreign countries use alternative credit scoring mechanisms than those in the United States, so the institution will need to make a more thorough investigation of your finances before extending credit to you. In some countries, only national citizens can take out loans, so it may be impossible to borrow money or take out a credit card in certain countries.

Step 1

Contact a lending institution in your target country and ask if it's legal for foreign residents to borrow money. If the answer is no, you may have to seek out alternatives. If it's possible, you may need to get further legal advice to guide you through the process. Consider contacting a legal firm in the country that you want to borrow money in about any additional procedures that you may need to follow.

Step 2

Apply for the loan or credit card from the foreign lending institution of your choice. As you're unlikely to have an established credit rating in the country in question, the institution will likely require that you go through some intensive financial screening. Small countries usually lack formalized credit rating procedures, so this kind of process will be expected. The loan officers at the bank will investigate your income, existing debts and all other aspects of your finances to determine your eligibility for a loan, credit card or line of credit.

Step 3

Review the loan agreement that the foreign institution provides to you and sign it. Once you borrow the money, you will likely need to keep it in accounts in that country. Most foreign banks only offer loans in the national currency. Sign the agreement once you are comfortable with the contract.

Tip

It will be significantly more challenging to get a loan in a country where you have no established business or credit rating. The longer that you've lived in a foreign country (and the greater your assets in that country), the more likely that you will win approval for a loan or credit card.