Obtaining credit while living in a foreign country can be challenging. Most banks and credit facilities give first preferences to those who hold South African ID’s. Most South African banks will consider foreigners who hold valid passports with work permits and permanent resident. For foreigners to be considered for credit here are some of the things they need to fulfil.
- Good Credit Record
Firstly, it is advisable to start establishing a good credit record. Foreigners can ensure that they have a good credit record by paying their credits on time and being faithful in their payments. They can start by opening small accounts from retail shops that they pay on a monthly basis, once they are able to they can move to larger credits.
- Affordability
Banks will also look at the affordability of the repayment of loans before extending loans. While applying for loans foreign customers must consider their spending habits to avoid being disqualified for credit.
- Criminal Record
They also need to ensure that they have a clean criminal record in order to be considered for new credit.
- Stable Income
A stable income is always preferred by most credit facilities as it means that the person seeking credit will be able to pay it back. The type of credit that one is looking for will also be considered before credit is approved.
- Valid Working Permit
Most importantly, institutes will extend credit to someone who has a valid work permit and permanent residents. Having a good credit history will increase the trust that the banks and credit facilities have over you. Foreigners can also check for their credit score in order to know if they need to pay more on their accounts.
- Avoid Being Blacklisted
They need to avoid being blacklisted as it may affect their future relationships with other institutes. Lending money to foreigners is considered a huge risk therefore interest on their loans is a bit higher than those of South African citizens.
