Building credit and borrowing

This Topic helps you understand where you stand, build a record step by step, and borrow without falling into costly products. It is for anyone thinking about, planning or carrying out a move to Spain.

Start with "Building a credit history in Spain from scratch". It shows you how to set up the record that supports cards, loans and contracts. After that, read the rest in the order that fits your situation:

• "CIRBE and credit files: who holds your data in Spain" explains who keeps your data and how to see it.
• "Does your home-country credit history count in Spain?" covers what carries over and what to offer instead.
• "Will a Spanish bank lend to you as a newcomer?" explains what lenders weigh and when they ask for a guarantor.
• "Personal loans, credit cards and buy now pay later in Spain" helps you choose and use consumer credit.
• "The revolving credit card trap in Spain" shows how to spot these cards and what to do if you are charged excess interest.

Mortgages, rental guarantees and business loans are not covered here.

Key rules

• CIRBE threshold: Lenders report to CIRBE once your total risk with them reaches 1,000 euros; below that, only operations in default are reported.
• CIRBE report cost: Requesting your own CIRBE report from the Banco de España is free of charge, by any channel.
• Withdrawal period: You can withdraw from a consumer credit contract within 14 calendar days without giving a reason, by telling the lender in writing or another durable form before the deadline.
• No single score: Spain has no single national credit score, so your bank relationship and repayment record are what count.
• Payroll: Having your salary paid into your Spanish account is the strongest step you can take.
• No national score: Spain has no single official credit score; each lender judges you in its own way.

Building credit and borrowing: the whole process, step by step

From first account to borrowing

• See what Spanish files hold on you (read: CIRBE and credit files: who holds your data in Spain): Before you apply for anything; a bureau must reply to your free data request within 1 month

• Open a Spanish bank account and have your payroll paid into it (read: Building a credit history in Spain from scratch): As soon as you have your NIE and an address

• Keep regular account activity and payroll going: Usually 6 to 12 months before lenders see a usable record

• Gather substitute evidence such as payslips, foreign bank statements and a guarantor (read: Does your home-country credit history count in Spain?): Before applying, because foreign scores are generally not recognised

• Check your eligibility: contract type, seniority and residence permit (read: Will a Spanish bank lend to you as a newcomer?): Before you apply; lenders often want 6 to 12 months of job seniority or residence

• Compare offers using the standard information form and the TAE (read: Personal loans, credit cards and buy now pay later in Spain): In good time before you sign anything

• Change your mind after signing, if needed: Within 14 calendar days

• Repay early if you wish: At any time during the loan

• Act on excess interest on a revolving card (read: The revolving credit card trap in Spain): Complain to the bank first; go to the Banco de España if there is no reply after 1 month

Documents you may need

Identity and residence

• Your NIE
• A copy of your ID — CIRBE and credit files: who holds your data in Spain
• A rental contract or a padrón certificate — Does your home-country credit history count in Spain?

Income and work

• Recent payslips and an employment contract — Does your home-country credit history count in Spain?
• Foreign bank statements — Does your home-country credit history count in Spain?
• Recent payslips as proof of income — Will a Spanish bank lend to you as a newcomer?
• Proof of your payroll and your employment contract — Building a credit history in Spain from scratch
• A letter from your employer confirming your job and pay — Does your home-country credit history count in Spain?

The home and the lease

• The signed credit contract — Personal loans, credit cards and buy now pay later in Spain
• Proof of your address in Spain and a Spanish bank account — Will a Spanish bank lend to you as a newcomer?

Other documents

• The standard European information form — Personal loans, credit cards and buy now pay later in Spain

Each article lists the other documents it asks for, where you need them.

Building credit and borrowing: questions that cross several articles

Can I use my home-country credit score to get a loan in Spain?

Generally no, because Spanish lenders do not recognise foreign credit scores or reports and rely on Spanish files. You start with no score, apart from a few bank expat programmes.

What can I show a bank instead of a Spanish credit history?

You can show recent payslips, an employment contract, foreign bank statements from the last 6 to 12 months, a foreign tax return or a Spanish guarantor. Lenders also weigh income, contract type and how long you have lived here. Read "Will a Spanish bank lend to you as a newcomer?" for the details.

How long does it take to build a usable record in Spain?

It usually takes 6 to 12 months of regular account activity and payroll. Bigger products such as a mortgage depend more on income and deposit than on history.

How do I see what the credit files hold about me?

You can ask Equifax or Experian for your data free of charge, with a copy of your ID, and they must reply within 1 month. See CIRBE and credit files: who holds your data in Spain.

Which card should I avoid if I want to stay out of expensive debt?

Avoid revolving cards, where the unpaid balance accrues interest at a very high TAE. Debit, deferred-payment and prepaid cards do not carry that risk in the same way. Read "Personal loans, credit cards and buy now pay later in Spain" and "The revolving credit card trap in Spain".