Building a credit score

You won't get credit or a loan as a foreigner in Malta unless your income is so high and safe that there is no doubt for the bank.

In fact the word credit card in Malta means you give the bank the money first and the the bank will then give you  credit of your own money but not all ! You will always need to retain a positive balance.

A credit or store card that you can pay monthly ? Doesn't exist in Malta. Cash counts.

Cheers
Ricky

We got a credit card with no problems at all.  The bank probably won't give you one, but we got the Insignia Card after it was suggested on here. It's just a normal credit card, none of the silliness the banks do by taking €2000 of your own money, then giving you a credit limit of €1000.

Thanks Ricky,
        So in the case of a bank loan, would we need to for example, put 1200euro into a savings account of some sort and borrow 1000euro, then pay the loan over say 6 months. Then get our 1200euro back?

I know that doesn't make a lot of sense but would this help build a credit score in the future or is there not really any point?

Hi Sam,
The insignia card sounds helpful. I might have to get one of them

In regards to banks not lending to foreigners. Would we ever manage to get a mortgage in the future?

It doesn't make a lot  of sense.

Maltese banks are very reluctant to lend money to foreigners. Your best bet is to have a decent income and job guarantee for one or two years.

What you are suggesting would not give you access to a larger amount of money than you give the bank in the first place.

Why do you need to build a credit score in Malta? Buying an appartment or house will always mean a major down payment. But if you do you can get a mortgage as a foreigner in Malta. But never more than 80 % or so.

Cheers
Ricky

There is a couple of reasons I wanted to get a good credit rating, I'm not sure if it is the same in Malta but in the UK I had to have credit checks to rent my house, get my job, get a phone contract. They want credit checks for everything which makes having a good credit rating pretty important.

Also I presumed (like in the UK) you would need a good credit rating to get a mortgage. If in the future we decided to buy a house or apartment in Malta I would like to be prepared. If it is just a deposit and a good job that is needed then we wouldn't get any loans or credit cards.

Adamazin wrote:

Hi Sam,
The insignia card sounds helpful. I might have to get one of them

In regards to banks not lending to foreigners. Would we ever manage to get a mortgage in the future?

I've no idea, sorry.  We've only been here since February, so we're still learning. I'd assume so though because many foreigners do buy and they can't all have the money outright. 

You don't have credit checks here for things like rentals, phone etc, so a credit rating isn't necessary.

Thats's the way ir is in Malta .

Sadly too many EXpats just make the run with debts so you can't blame the banks ! I still receive court notices to my address from former tenants being approached by the police ! I hate these criminals still using my address!

Cheers
Riicky