Credit Cards in Spain

Credit Cards in Spain

Finances! The one aspect of life that comes with both advantages and disadvantages depending on how you manage them. Probably growing up you would hear adults arguing about finances and wonder why it was such a big deal! Well, as an adult, with bills to pay I’m sure you now understand the importance. 

Knowing a thing or two about how credit cards work in Spain will go a long way in helping you manage your finances. You have already spent a lot of money in moving to Spain so you are looking to save as much as possible. The bad news for you is, without a Spanish credit history, it might be a little tougher to get a credit card.

An Overview of the Spanish Credit System 

To determine the creditworthiness of a customer, your bank will look at your credit history in Spain. This means that they will track all the loans you have borrowed before deciding to extend a line of credit. So, your chances of getting a credit card are lower if you are on a blacklist for bad credit. 

However, as a new arrival to the country, I don’t expect you have borrowed any loans that you were unable to pay. This is the part where managing your finances makes a lot more sense. I should also let you know that blacklisting in Spain means you can’t get your name off until after 6 years. You also must have paid off your debts in full. 

Building Good Credit History in Spain

All your credit card provider needs to know is that you can pay off your debts. So, ensure that you have a stable job with regular income. You are probably wondering what it means to have a good credit right? Well, it will depend on your credit score and differs from one credit bureaus to another. 

For example, most banks in Spain won’t give you a credit card with a credit score under 400. You need a credit score of between 700 and 900 to get a line of credit. The best way to build good credit would be by setting up utility accounts.  So, ensure you pay for all your utilities on time. 

Applying for a Credit Card in Spain

Talking about money in Spain brings to mind the Netflix series; Money Heist. Whether or not you have watched this series, you know how important money is in Spain. Luckily for you, there are many banks in Spain that offer various financial services. While opening a Spanish bank account you will notice that most banks offer credit cards. The most common cards are Visa and Mastercard

Each bank will have different requirements for issuing credit cards. However, some requirements are standard and might apply to all banks.  For starters, you must be 18 years and above to get a credit card in Spain. Similarly, credit cards are only available to permanent residents. Thus, as an expat, you will need your permanent residency visa. Finally, you will need your Número de identidad de extranjero NIE number

Credit Card Providers in Spain 

There are many credit card providers in Spain. However, some are more popular and expat friendlier than others. Let’s take a look at some of the best credit cards for expats in Spain. 

WiZink Plus

Though WiZink is an online-only bank, it offers its customers a no-fee Mastercard with 3% refund on your purchases. However, it only applies to any 2 categories in travel, food, fashion, and leisure. 

So, if you are looking for an affordable credit card where you can also earn as you pay. This is the best one for you. Picture this, the said cashback can go up to €6 Euro every month. Besides, you also decide when to pay your monthly credit card bills and how to pay. You call the shots on the time when you’ll be paying your bill every month. 

The provider allows you to pay in full every month or pay a fixed amount each month. You can also decide to pay a percentage of your available credit each month. However, you should note that with credit cards, it’s best to pay your bills in full every month to avoid interest.  

BBVA Aqua Credit Card

If you are looking for a secure credit card then this is the card for you. For a start, the card’s number is not printed on it. It also comes with a dynamic CVV that protects your online card purchases. The CVV is only valid for a few minutes so you are somewhat assured of protection against fraudsters. 

Furthermore, the provider lets you choose between a physical card and a digital card. You will receive notifications every time you use your card. So, you can tell if someone else is using it. 

Open Credit Card

The Open Credit Card is a product of Openbank. The card is free and available to those earning a regular minimum income of €900 EUR. The card allows you to purchase goods from stores or online with a 3D Secure Code System. The card works at any business accepting Visa. 

With this card you can get a limit of up to €6,000 EUR every month all you need is an active Openbank account. The provider also offers you a free travel accident insurance when you buy a ticket with the card whenever you are traveling. It has a compensation limit of €120,202.20 and covers disability and death claims. 

The minimum fee for making cash withdrawals from ATMs with this card is €3.90. However, note that making purchases in foreign currency will cost you a fee. The fee costs 3% of the purchase amount, with a minimum fee of €2.