Establishing Credit Here In Argentina

[PhilipDT]

To a US citizen, a mortgage has a specific meaning.

I'm a US citizen and to me mortgage has a specific meaning which is: a loan secured by real estate, something that most certainly exists here. Just because mortgages are shorter term and usually for a lower loan to value ratio does not mean that they don't exist in argentina.

As an American I'm used to milk coming in gallon sized jugs. The fact that here it comes in smaller 1L sachets doesn't mean that milk doesn't exist in argentina.

 

[Ries]

Yes, hipotecas exist. And 6.6% of argentines use one when they buy a house.

But I still maintain that "establishing credit" in the US sense is pretty much nonexistent in Argentina.

 

[Gaucho_ec]

Well, thanks to my "caja de ahorro" I got a credit card, and as I've said in the previous post, they kept raising limits up to gold status due to my good behavior. All this without ever showing a pay check (because I never got one) If that's not "establishing credit"...

 

[pauper]

I'm a US citizen and to me mortgage has a specific meaning which is: a loan secured by real estate, something that most certainly exists here. Just because mortgages are shorter term and usually for a lower loan to value ratio does not mean that they don't exist in argentina.

As an American I'm used to milk coming in gallon sized jugs. The fact that here it comes in smaller 1L sachets doesn't mean that milk doesn't exist in argentina.

U.S. hegemony knows no bounds. Does this also mean the English speakers of the world will be forced to pronounce and spell aluminium incorrectly?

 

[sleslie23]

U.S. hegemony knows no bounds. Does this also mean the English speakers of the world will be forced to pronounce and spell aluminium incorrectly?

Only if you try to say that aluminum doesn't exist in Argentina.

 

[Big Al]

Since the OP uses a Lakers logo for his avatar, I was assuming he was from the USA, and, hence, thinks of "mortgages" and "credit ratings" using the US definitions.
Certainly, I could be wrong, and he could be talking about how they do it in Ireland or Australia.

(A variety of other countries, including the Netherlands, Norway, and Switzerland, have varying deductibility for mortgage interest- http://en.wikipedia....erest_deduction
but it is mostly associated with the US.)

I am from the US, Los angeles..., and yeah I know the credit system back in the US but I was trying to understand the concept here in Argentina, in the US they just punch in your social security number and your whole credit history is right there, so Im kinda trying to understand what is used here, how does one build credit here.

 

[sleslie23]

I am from the US, Los angeles..., and yeah I know the credit system back in the US but I was trying to understand the concept here in Argentina, in the US they just punch in your social security number and your whole credit history is right there, so Im kinda trying to understand what is used here, how does one build credit here.

It may have not been clear from the previous discussion, but there is no such thing as "building credit" here. Either you qualify for it or you don't, which primarily depends on your relationship with your bank (i.e how much money you have or make).

If you default on a loan, have delinquent accounts, etc then your name is put on the "veras." But even that doesn't necessarily disqualify you. I've opened an account and obtained a credit card with my name listed on it.

Tell us what you want to do with credit in Argentina and we can probably give you more specific answers.

Edit: For the most part everything is tracked via your DNI. Without a DNI, some things are tracked via a CUIT/CUIL, but without a DNI you probably aren't eligible for credit in Argentina.

 

[ElQueso]

Well, there is sort of building credit here, but with a specific provider.

In the States the banks and lenders all use the credit reporting systems. Here, as someone mentioned, something similar is used to discover if someone has outstanding debts not paid. But that system doesn't give a rating like we do in the States based on payment history and amount of loans taken out, etc.

We've been connected to a bank here for about 4 years now. We started off with a Caja de Ahorro (savings account) where you get a sort-of-card to begin with. Basically a debit card that can be used at many stores to buy things on credit and get cash out of ATMs. The credit actually originates from the stores in this case - they charge the bank every month for what's owed, although the bank tracks it as well. When we had just this card, you couldn't even buy things online.

Next comes a credit card (ours was Amex) when you've demonstrated that you can pay your payment debts. Very high interest rate (around 30% annual if I remember). We always paid it off every month.

Then you can graduate into having a checking account, which requires you to actually have established credit with the institution with whom you are doing business. We've never used our checks, but this account comes with a real debit card. It also comes with the ability to borrow money (we currently have a $50,000 limit, $10,000 for a "quick" loan).

There are different types of checking accounts that allow you to borrow more money, different prices of maintenance, etc., based on your provable income.

When we first got our account and it turned into a checking account, we never supplied them with any documentation as to how much we make. We had a problem with some overcharges from the bank (I'd be wary of Santander Rio) and had to get them removed from the credit card, and during the process they killed the card. When we went to go get it reinstated, they told us that we had to prove income before we could get it back.

According to our bank, it is now necessary (by law, or decree) to provide proof of income in order to get a checking account.

Mortgages are hard to get, even if you want one. High interest rates, 50% (usually, minimum) down payment and they put you through the wringer to get it approved. Same with car loans (actual loans, not the lay-away, pay as you go/lottery system).

 

[sleslie23]

The Cheese, as always, took the time to write a more detailed, accurate post. Use that as your base, OP.

However, regarding "building credit" I was given two credit card practically upon arrival in Argentina as a consequence of my company opening a bank account for me. It was based solely upon my employers standing with the bank and my salary. I neither asked for, nor wanted the credit cards. That was 7 years ago. Times have changed.

 

[Ceviche]

How to use "Hipoteca" to repay a seller who wants only US$?