# Build credit



## dennis82

anyone has tips to build credit (dont have much credit in my home country)


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## sparks

Credit for what ,,,,, interest rates are high in Mexico


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## dennis82

i'm european we use credit cards on a 30 days pay off basis.

I would need a credit card in that option, i saw most offer 6 month no interest etc, i don;t plan to "not" pay it off during that time.

So what has to be done to "build" credit here.


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## eastwind

Do Mexican banks and credit issuers use the same big 3 credit reporting agencies (Experian/Equifax/TransUnion) as the US? 

In the US there are "credit limits" and "credit scores", which aren't the same thing, and if the Mexican system is the same it's not clear which you are wanting to increase when you say "build credit" (maybe both).

In the US a high credit score is desirable because it lowers the rate of interest you pay on a house or car loan. It may also lower the premium cost quoted to you for various kinds of insurance.

In Mexico credit is less frequently used, more expensive, and harder to get.


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## dennis82

i heard they have only one "the buerau" or something i forgot the name.

When i lived in the US i was able to build credit with a secured credit card and proofed i can make payments etc

Main issue here is car rentals i was thinking about renting a car, europcar said they need a credit card.

I have only my santander bank card and my EU Account's Bank Card


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## sparks

You can apply for credit at stores like Electra and Copel but definitely, would need a resident Visa and I have no idea what they think of non-Mexicans. It's credit with them and no credit card


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## horseshoe846

dennis82 said:


> i heard they have only one "the buerau" or something i forgot the name.
> 
> When i lived in the US i was able to build credit with a secured credit card and proofed i can make payments etc
> 
> Main issue here is car rentals i was thinking about renting a car, europcar said they need a credit card.
> 
> I have only my santander bank card and my EU Account's Bank Card


I have heard the same - as I understand it there is a single Mexican credit rating agency, but I have no experience with them.

When you have a 'premium' bank account in Mexico (requirements vary) it is easier to get a credit card. I think we got one on day one. We have never paid interest on a credit card either in Mexico or in the US. But in Mexico you have to be very careful because rates are something like 45%. Also - we had a couple bad experiences. Kind of like the banks doing this differently. They will say something is 'free' but they charge your account anyway and reimburse it later. Or something can be 'free' if you charge a certain amount each month. We have been very happy with our free HSBC Mexico credit card. The benefits are somewhat similar to a Gold American Express card. They even detected when someone was trying to use the card fraudulently at a Texas Home Depot.


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## RVGRINGO

“Building credit“ in Mexico is not something that is generally possible for an expat; certainly not a tourist. Even those with residence visas, for which there are significant financial proofs required, will probably not build a credit rating. The reality is that citizenship, family history & connections, real estate and business ownership will all be considered. That takes a very long time to accomplish.
Besides; who would want to borrow money with the usurious interest rates in the mid-double digits?
Mexico is still largely a cash society, but you can use your USA credit card for some things; wire transfers or ETFs from your USA bank, for other things. So, keep all of those things; or establish them before considering a visit to a Mexican consulate to apply for a residence visa.


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## citlali

You have to have money in an account in a Mexican bank to ask for credit and then they turn you down if you are close to 70.
I had money in an account so I did not see the need for a credit card but I realize if does help when you travel if you want to rent a car.. I was turned down by Walmart Bancomer Banamex and other and starting at 68 they told me I was too old. I became a citizen and all of a sudden I am being offered creit by several banks so I think that being a citizen helps but if you have money i the bank you can get a credit card if you are an expat.

Upper middle class Mexican use credit pretty freely, it is not true that this is a cash society.. it depends if you have money or not, if you have Mexican and have money chances are your have credit cards and loans..it is not all one way..


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## horseshoe846

I agree some with what both of you say. Yes we have US credit cards, US debit cards, a couple Mexican debit cards and one Mexican credit card.

We often use SPEI transfers (interbank transfers). There are times when they simply will not accept our US credit card and we must use our Mexican card (which I pay off within a day or so). Our US credit card gives us cash back against travel (free, no exchange fees and the Visa exchange rate posted on their site). Our Mexican card earns points of some sort. When the dollar/peso was 21:1 my preference was to use our US cards. But at 19:1 I don't care so much because I have pesos in the bank that I picked up at 19.50 or so.

Citali : are you saying that at age 70 your credit cards were cancelled ot that it is hard to get a new card at age 70+ ?

It is true that middle class Mexicans use credit cards way too much. Last year we transferred our auto ins to AXA because HSBC got us a good discount. Last year we made one annual payment. This year when it was time to renew they were going to change the payment terms to monthly. Perhaps they thought they were doing people a favor. We had to cancel the policies and start new ones to get the ability to make one annual payment.

I find that Mexico is a cash-society only in small businesses. I pay my auto mechanic in cash. I pay the auto dealer via credit card. I pay the local ferreteria in cash. I pay Home Depot (or any big box store) via credit card. Today we had an albanio (?) come buy and I paid him in cash. If I visit my local Pemex I pay with a credit card. If it is just my wife and I for breakfast I pay in cash. If it is four of us for lunch - I use a credit card. I just got set up with a PASE card - auto paying via scanner at highway toll booths. I have it setup to auto charge my Mexican credit card 500 pesos everytime the balance drops below 200 pesos. They would not accept my US card. Also - I have had bad luck using a US card on MercadoLibre.


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## citlali

When I was 68 I got a Walmart card and applied for a credit card. I was turned down because I was too close to 70 according to Banco Walmart. At the time I was a permanent resident. Banamex and Bancomer both turned us down at the same time. Two years later Bancomer called me to offer me a credit card.. I told them do not bother I am 70, they said no we noticed you are now a Mexican citizen and we are happy to offer you a credit...I took it as in a few occasions it makes life easier. I too pay it off right away..
This is what happened to me so I am not sure why I was really turned down unless it was the citizenship but the excuse when I was a permanent resident was that I was too old.. I had the same balance in the bank owned the same cars and houses so I cannot see what else it would be.


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## TundraGreen

citlali said:


> When I was 68 I got a Walmart card and applied for a credit card. I was turned down because I was too close to 70 according to Banco Walmart. At the time I was a permanent resident. Banamex and Bancomer both turned us down at the same time. Two years later Bancomer called me to offer me a credit card.. I told them do not bother I am 70, they said no we noticed you are now a Mexican citizen and we are happy to offer you a credit...I took it as in a few occasions it makes life easier. I too pay it off right away..
> This is what happened to me so I am not sure why I was really turned down unless it was the citizenship but the excuse when I was a permanent resident was that I was too old.. I had the same balance in the bank owned the same cars and houses so I cannot see what else it would be.


At one point my Mexican bank offered me a credit card with no monthly fee. I accepted it and a month later saw a monthly fee of $650 mxn show up on my statement. I don't know if I misunderstood, or if it was a mistake, but I didn't want the card badly enough to find out. I just cancelled it. I do have a couple of Mexican bank debit cards.


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## dennis82

i would just need a credit card for renting a car, something if i want to buy something on credit like furniture or TV etc., like i did in europe.

BTw i dont have access to a US Credit Card i'm not a US Citizen


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## dennis82

maybe i want to buy a car idk yet.


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## horseshoe846

dennis82 said:


> i would just need a credit card for renting a car, something if i want to buy something on credit like furniture or TV etc., like i did in europe.
> 
> BTw i dont have access to a US Credit Card i'm not a US Citizen


The point is - you do not want to buy something (anything) on credit in Mexico and pay it off over time. Sure a lot of 'sales' will suggest that you have 6 months interest free or such - but that is just pushing the can down the road.


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## citlali

I have Mexican debit cards but that is no good to rent cars . I do not have any US credit card I can use as I have no US address .


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## dennis82

i was wondering my debit card from one Bank says clearly MC Prepaid, but one just says mastercard, and the card itself doesnt say debit nor credit (or electron) maybe i can "fool" the rental company with that. 

I called europcar and they said we only accept credit cards but how do they know (card was issued in Europe btw)


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## Waller52

All the info you need is available from the experts on creditboardsdotcom


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