Need suggestions - Credit Card in Argentina for citizen

[Stevied]

Hi Everyone,

Not exactly an expat question, but hopefully someone can help anyway. We live in the US (my wife is Argentine). Our niece lives in Buenos Aires; is a university student (over 21); and has a job that is en negro. She has a bank account at Galicia, and we supplement her income with cash to her account via western union. It would be very convenient for her to have a credit card - but we can’t figure out how she can get one under these circumstances. In the US there would be multiple ways (my daughter had one as a university student with no job). We would happily co-sign, but (a) we don’t live in Argentina; and (b) we are both retired. Does anyone have any ideas?

S

 

[carride]

Hi Everyone,

Not exactly an expat question, but hopefully someone can help anyway. We live in the US (my wife is Argentine). Our niece lives in Buenos Aires; is a university student (over 21); and has a job that is en negro. She has a bank account at Galicia, and we supplement her income with cash to her account via western union. It would be very convenient for her to have a credit card - but we can’t figure out how she can get one under these circumstances. In the US there would be multiple ways (my daughter had one as a university student with no job). We would happily co-sign, but (a) we don’t live in Argentina; and (b) we are both retired. Does anyone have any ideas?

S

Brubank and Ualá are both good options for prepaid cards. Like a debit card. I was able to quickly receive these a few years ago. An advantage of these two banks is the ability to build history to eventually request one of their credit cards.

You can send money with western union the same way you have been doing to your nieces Galicia CBU checking or savings account. It is worth having a backup, and MoneyGram is one which also sends to CVU. WU has only recently added the option to send to CVU instead of CBU. Argentina has two type of account networks for handling transfers. CVU and the classic CBU. Brubank is CBU, and Ualá default is CVU, though since their merge of Wilobank they also have CBU accounts. https://www.santanderpost.com.ar/articulo/cbu-vs-cvu-cuales-son-sus-principales-diferencias/

The two cards I mention are not the only ones, though were some of the first FinTechs that filled the hole to provide banking for large percentage of people in Argentina who were outside the banking system. You should be able to investigate others. I believe, MercadoPago also has a physical prepaid card as a CVU account option.

Finally you should keep track of the limits that ARCA has set for transfers and spending. Not blocks, but flags that might be raised if monthly are reached. https://baexpats.org/threads/arca-i...resholds-for-virtual-wallets-and-banks.48450/

 

[FrankPintor]

Hi Everyone,

Not exactly an expat question, but hopefully someone can help anyway. We live in the US (my wife is Argentine). Our niece lives in Buenos Aires; is a university student (over 21); and has a job that is en negro. She has a bank account at Galicia, and we supplement her income with cash to her account via western union. It would be very convenient for her to have a credit card - but we can’t figure out how she can get one under these circumstances. In the US there would be multiple ways (my daughter had one as a university student with no job). We would happily co-sign, but (a) we don’t live in Argentina; and (b) we are both retired. Does anyone have any ideas?

S

And this is not exactly a response to your questions, but I am a bit surprised, I opened a Galicia account a few months ago, and apart from the standard debit card I was immediately offered not one, but two credit cards. All without having deposited anything in my account.

Working "en negro" is very common here, I don't think it should be a problem, as long as there is regular income in your niece's account.

Maybe it's as simple as applying for the CC in the Galicia app? Or going into her branch and requesting a CC?

 

[Rich One]

You niece can obtain a CC from Naranja X or Carrefour/Jumbo.

 

[Ries]

I think the fastest easiest way is just send money direct to her existing galicia account via western union. The nomimnal cost per transaction may seem higher at first, but most of the other ways also have expenses, and are from companies or banks more susceptible to unexpected law or regulation changes. Galicia and WU arent going anywhere and it works.

 

[Stevied]

I think the fastest easiest way is just send money direct to her existing galicia account via western union. The nomimnal cost per transaction may seem higher at first, but most of the other ways also have expenses, and are from companies or banks more susceptible to unexpected law or regulation changes. Galicia and WU arent going anywhere and it works.

Sorry, I think you misunderstood my question. We don’t have any issues getting money in to Argentina for her - we just want to help get her a credit card to build some credit and make transactions a bit easier.

 

[Ries]

Sorry, I think you misunderstood my question. We don’t have any issues getting money in to Argentina for her - we just want to help get her a credit card to build some credit and make transactions a bit easier.

credit cards are not as common here- many businesses expressly refuse to take credit cards, only debit or transfer.
But Banco Galicia will change her current debit card to a credit card, and she can have a visa card. They sometimes require you change the exact type of account you have, but its no big deal to get Galicia to issue a card.

Tarjeta de débito o crédito | Banco Galicia

Descubrí cuándo usar una tarjeta de débito y cuándo una tarjeta de crédito según tus necesidades financieras, y aprovechá al máximo sus beneficios.

www.galicia.ar

 

[Ries]

Another thing to consider is a "credit rating" is not the desirable, and common, thing that it is in the states. Mortgages to buy homes are quite rare, and they have adjustable interest rates that would scare the pants off any US buyer. Not many people qualify for loans, either for cars or homes. Most stores offer time payments without a credit card.
Credit cards here are for the rich. Most people are living pretty much paycheck to paycheck, and only spend the money they have.

 

[carride]

Credit cards here are for the rich. Most people are living pretty much paycheck to paycheck, and only spend the money they have.

This is quite an outdated statement. Not true at all in these times or for a number of years. Many middle-class have credit cards.

To not have one, first you miss the % discounts many established stores give depending on the bank issuer of the card. Second those same stores have worked with the banks to allow the payments to be stretched out for a number of months, often with zero interest, without hidden or up-front fees. This is the system that allows low earners to buy large home appliances.

Another thing to consider is a "credit rating" is not the desirable, and common, thing that it is in the states.

I have no knowledge if this is true or not. Though I doubt it is. Young documented workers can be given low amounts of unsecured credit from the banks, and I assume their payment history is useful in some way towards future credit

 

[Ries]

I will retract my statement, then, as I am out of date. I use US credit cards, and an Argentine debit card, which is a combo that works well for me.