Banking in Spain as an American Expat

Credit in Spain

One of the most surprising things when we first got here was that they did not care about your credit score. That is a USA system surprisingly, Spain does not care about your 720 score. They prefer to see your bank statements, and work contract or W2 to verify you have the funds needed. These are the types of documents used when you want to rent or finance something.

Spain credit cards

If you use local banking in Spain, then you may get a credit card with an APR and a credit card without an APR. These work very similar to what you are used to but with one big difference. You can set your repayment plan in increments of 3 months. This works great for those large purchases that you do not want to take a big hit on right away.

If you are using credit cards in Spain issued by your local Spanish bank, then you will have to set up a payment plan in your bank account and ensure the funds are there. There is no minimum payment, it is more like breaking up the purchase into something like 15 months with a bit of a fee added to the monthly payment. And after 15 months you are done. More of something like if you have ever done layaway or something similar.

Credit score in Spain

Credit does exist here in Spain, but we still do not fully understand the credit system in Spain. From our understanding from our research, personal experience, and what our banker friends have told us, is that it is like a “naughty list” system. If you do not pay something you get put on a did not pay list. Once you pay back the debt you are removed from the list.

There is more that goes into the credit system, but this is the best way I can explain it in layman’s terms.