New DNI - What's next? How to build credit?

[Oatmeal]

Hello. This post is for my girlfriend who just got her temporary visa (2 Years) and in process to get a physical DNI. Not sure how long that takes but we want to get a head start for her to build credit history. In other countries, sometimes you have to register your identification to the credit agencies (Equifax, Experian and TransUnion).

In addition, it is ideal to start building credit with store cards, credit cards or register some services (cellular)? While I am not sure what are the terms of these cards and if they are even favorable or good to have, I do want her to start building credit regardless.

Anyone able to provide clarity on this? 1) Need to register to credit agencies? 2) How to build credit? or any opinion/suggestions on what she should do?

Thank you.

 

[James Bond]

Hello. This post is for my girlfriend who just got her temporary visa (2 Years) and in process to get a physical DNI. Not sure how long that takes but we want to get a head start for her to build credit history. In other countries, sometimes you have to register your identification to the credit agencies (Equifax, Experian and TransUnion).

In addition, it is ideal to start building credit with store cards, credit cards or register some services (cellular)? While I am not sure what are the terms of these cards and if they are even favorable or good to have, I do want her to start building credit regardless.

Anyone able to provide clarity on this? 1) Need to register to credit agencies? 2) How to build credit? or any opinion/suggestions on what she should do?

Thank you.

Argentina doesn't have credit agencies like back home. She should sign up for a savings account at a big bank and get a debit card. I am not sure if they will give her a credit card right away but keep in mind interest rates are very high so you probably won't want to use it much unless you're using it in stores as many stores will let you finance things with no interest for 12-24 months. But it's doubtful you would want to use a credit card here and have a balance besides these monthly charges for items you finance with 0% interest.

A relationship with a bank will be the most important first step. Also, these days if you have a DNI banks will want to see that you have some income with AFIP our tax agency. So if she isn't employed she may want to declare some income with monitributo. I believe there are some threads on this forum about that.

 

[Wally]

Hello. This post is for my girlfriend who just got her temporary visa (2 Years) and in process to get a physical DNI. Not sure how long that takes but we want to get a head start for her to build credit history. In other countries, sometimes you have to register your identification to the credit agencies (Equifax, Experian and TransUnion).

In addition, it is ideal to start building credit with store cards, credit cards or register some services (cellular)? While I am not sure what are the terms of these cards and if they are even favorable or good to have, I do want her to start building credit regardless.

Anyone able to provide clarity on this? 1) Need to register to credit agencies? 2) How to build credit? or any opinion/suggestions on what she should do?

Thank you.

No credit system like the USA to worry about. Open up a bank account at a decent-sized bank. I don't use my local credit cards much at all. We don't buy a lot of junk we don't need. Also, you will find many locals do not like to keep a large amount of $ in their accounts. Also, many people don't declare all their income so they don't want AFIP to see what they are spending and mostly use cash. I mostly use my credit cards from the USA to keep out of the radar of AFIP.

You can get a cellular plan but you don't really use it for credit at all. I have been living here for many years and don't deal with credit issues here. I bought my apartment over 10 years ago and the bills still come in the name of the previous owner. I never bothered to change it to mine as the line was always so long. I didn't hassle with it.

 

[earlyretirement]

I agree with the others. I've been living and working in Buenos Aires for 22 years. I don't do anything credit-related so no worries there. It's not like the USA with our credit bureaus. As the others mentioned, you really wouldn't want to use credit here as the interest rate would be astronomical. I do the same as Wally does. I just use my USA credit cards inside Argentina and really this is a fairly new phenomenon just over the past year or so. Previous to that we had the white and blue rate that didn't make sense to ever use your credit card. No MEP rate back then. It's amazing being able to use your credit cards from back home which you will mostly want to do unless the rate shifts.

You can always see the exchange rate here:

Dólar hoy, cotización del dólar, precio del dólar, dólar blue, precio histórico del dólar, valor del UVA | Dolarito.ar

Seguí la cotización del dólar minuto a minuto, compara cotizaciones, visualiza los valores históricos, conocé el precio del dólar, evolución del valor UVA

www.dolarito.ar

You should always keep in mind MEP, Blue and Western Union rates to see what makes the most sense for you.

I agree to get a bank account with a bigger bank. I would recommend Banco Galicia. You can get a debit card and set up an account all without going into a branch once you have your address or you can use an address of a friend if you don't have your apartment yet. They have a free account you can sign up for. Their customer service is great.

https://www.galicia.ar/personas/hacete-galicia

 

[Betsy Ross]

Most people are most excited to get their DNI so they can use Mercado Libre!

 

[Jakoval]

Most people are most excited to get their DNI so they can use Mercado Libre!

Seriously, life got a whole lot easier once I got my DNI. It's like I was set free. Without it, there's only so much you can do.

 

[Digital Nomad]

Seriously, life got a whole lot easier once I got my DNI. It's like I was set free. Without it, there's only so much you can do.

Hey @Jakoval can I ask how life changed? My biggest annoyance is asking friends to use their Mercado Libre. What else more can you do?

 

[Jakoval]

Hey @Jakoval can I ask how life changed? My biggest annoyance is asking friends to use their Mercado Libre. What else more can you do?

I have permanent residency and with that you can pretty much do anything a citizen can except voting in the national level. I was told you can vote in the local elections but I am not sure which ones. With DNI, you can open bank accounts, register to use mercado pago (and mercado libre), register on websites such as Coto and other supermarkets or Farmacity to get their membership cards for discounts (with Coto Comunidad card you get great discounts). You can register your Sube pretty easily. My spouse also requested a supplemental credit card for me. I've had my DNI (actual plastic in my hands) for close to two weeks now and that's all I've done I think. Before that, I couldn't do much. Everything required DNI. I mean with Precaria you can do certain things but it's not as easy as DNI.

 

[Digital Nomad]

I have permanent residency and with that you can pretty much do anything a citizen can except voting in the national level. I was told you can vote in the local elections but I am not sure which ones. With DNI, you can open bank accounts, register to use mercado pago (and mercado libre), register on websites such as Coto and other supermarkets or Farmacity to get their membership cards for discounts (with Coto Comunidad card you get great discounts). You can register your Sube pretty easily. My spouse also requested a supplemental credit card for me. I've had my DNI (actual plastic in my hands) for close to two weeks now and that's all I've done I think. Before that, I couldn't do much. Everything required DNI. I mean with Precaria you can do certain things but it's not as easy as DNI.

Thank you for taking the time to respond. That's good to know about the discounted membership cards. Do you guys buy a lot of things on the credit card? I see those payment plans. Are those at 0% interest? Liking buying something and paying over 24 months.

 

[Jakoval]

Thank you for taking the time to respond. That's good to know about the discounted membership cards. Do you guys buy a lot of things on the credit card? I see those payment plans. Are those at 0% interest? Liking buying something and paying over 24 months.

Yes, we do buy things with the credit cards. For example, Coto always has daily discounts on different bank cards, be it debit, cash or credit. See the charts below. Each day of the week the discount is offered on different banks and cards, etc. Also, different stores (if the prices are high) normally offer payment in installments either 3 or 6 cuotas. I haven't seen the 24 months of payment but I guess it has to be something very expensive for you to pay in such a long stretch. Mostly I've seen only either 3 or 6 cuotas e.g. a few days ago we bought two pairs of hiking shoes that cost a little over 300,000 pesos and the store offered 0% interest in 6 cuotas.

 

[Oatmeal]

Argentina doesn't have credit agencies like back home. She should sign up for a savings account at a big bank and get a debit card. I am not sure if they will give her a credit card right away but keep in mind interest rates are very high so you probably won't want to use it much unless you're using it in stores as many stores will let you finance things with no interest for 12-24 months. But it's doubtful you would want to use a credit card here and have a balance besides these monthly charges for items you finance with 0% interest.

A relationship with a bank will be the most important first step. Also, these days if you have a DNI banks will want to see that you have some income with AFIP our tax agency. So if she isn't employed she may want to declare some income with monitributo. I believe there are some threads on this forum about that.

We will investigate about AFIP and monitributo. She is currently unemployed but it sounds like at least having a bank account is important. Even if it is a small balance. Any benefits of obtaining a store card? How do they determine if she is eligible? We can see in some situation where we might take advantage of 12 month no interest for somethings. However does this help with her credit in anyway? Thanks

What happens if someone defaults on a credit card/store card? I am assuming there are some levels or credit worthiness in BA.

 

[Oatmeal]

No credit system like the USA to worry about. Open up a bank account at a decent-sized bank. I don't use my local credit cards much at all. We don't buy a lot of junk we don't need. Also, you will find many locals do not like to keep a large amount of $ in their accounts. Also, many people don't declare all their income so they don't want AFIP to see what they are spending and mostly use cash. I mostly use my credit cards from the USA to keep out of the radar of AFIP.

You can get a cellular plan but you don't really use it for credit at all. I have been living here for many years and don't deal with credit issues here. I bought my apartment over 10 years ago and the bills still come in the name of the previous owner. I never bothered to change it to mine as the line was always so long. I didn't hassle with it.

Will definitely have to research about AFIP, it sounds like if there is any income or money in local accounts, it raising a risks and potential tax obligation.

 

[Oatmeal]

I agree with the others. I've been living and working in Buenos Aires for 22 years. I don't do anything credit-related so no worries there. It's not like the USA with our credit bureaus. As the others mentioned, you really wouldn't want to use credit here as the interest rate would be astronomical. I do the same as Wally does. I just use my USA credit cards inside Argentina and really this is a fairly new phenomenon just over the past year or so. Previous to that we had the white and blue rate that didn't make sense to ever use your credit card. No MEP rate back then. It's amazing being able to use your credit cards from back home which you will mostly want to do unless the rate shifts.

You can always see the exchange rate here:

Dólar hoy, cotización del dólar, precio del dólar, dólar blue, precio histórico del dólar, valor del UVA | Dolarito.ar

Seguí la cotización del dólar minuto a minuto, compara cotizaciones, visualiza los valores históricos, conocé el precio del dólar, evolución del valor UVA

www.dolarito.ar

You should always keep in mind MEP, Blue and Western Union rates to see what makes the most sense for you.

I agree to get a bank account with a bigger bank. I would recommend Banco Galicia. You can get a debit card and set up an account all without going into a branch once you have your address or you can use an address of a friend if you don't have your apartment yet. They have a free account you can sign up for. Their customer service is great.

https://www.galicia.ar/personas/hacete-galicia

Thanks for the suggestions on the bank. What it sounds like to me is store cards/credit cards are just not worth it? Unless it is 0% 12 month and we want to spread our payments?

 

[Oatmeal]

I have permanent residency and with that you can pretty much do anything a citizen can except voting in the national level. I was told you can vote in the local elections but I am not sure which ones. With DNI, you can open bank accounts, register to use mercado pago (and mercado libre), register on websites such as Coto and other supermarkets or Farmacity to get their membership cards for discounts (with Coto Comunidad card you get great discounts). You can register your Sube pretty easily. My spouse also requested a supplemental credit card for me. I've had my DNI (actual plastic in my hands) for close to two weeks now and that's all I've done I think. Before that, I couldn't do much. Everything required DNI. I mean with Precaria you can do certain things but it's not as easy as DNI.

ohh good tips thx.

 

[Larry]

Yes, we do buy things with the credit cards. For example, Coto always has daily discounts on different bank cards, be it debit, cash or credit. See the charts below. Each day of the week the discount is offered on different banks and cards, etc. Also, different stores (if the prices are high) normally offer payment in installments either 3 or 6 cuotas. I haven't seen the 24 months of payment but I guess it has to be something very expensive for you to pay in such a long stretch. Mostly I've seen only either 3 or 6 cuotas e.g. a few days ago we bought two pairs of hiking shoes that cost a little over 300,000 pesos and the store offered 0% interest in 6 cuotas.

View attachment 3951
View attachment 3952

This is what most locals have to do in order to afford things. I also use these Coto and store discounts. Every little bit helps. Many items have 6 quotos and larger electronic items can have the extended 0% payments. My friends have to do that when their household appliances break down.

It is very difficult times now.

 

[Larry]

We will investigate about AFIP and monitributo. She is currently unemployed but it sounds like at least having a bank account is important. Even if it is a small balance. Any benefits of obtaining a store card? How do they determine if she is eligible? We can see in some situation where we might take advantage of 12 month no interest for somethings. However does this help with her credit in anyway? Thanks

What happens if someone defaults on a credit card/store card? I am assuming there are some levels or credit worthiness in BA.

If she is unemployed and not declaring any income she probably won't want to use her bank account too much. No bank will likely give her a credit card if she has no declared income. There is no credit system for the most part in Argentina as others told you @Oatmeal. Forget about this concept.

Will definitely have to research about AFIP, it sounds like if there is any income or money in local accounts, it raising a risks and potential tax obligation.

Many banks will will likely close down an account for a foreigner that does not have any declared income. See the other thread about the bank notices from the bank. AFIP the tax authority here will start to see if your girlfriend has a lot of spending in her account where she is getting the money. Before they did not care but the new President wants to try to increase tax revenue.

See this-

New banking restrictions for expats living in Buenos Aires? Did anyone else get an email from their bank? (UIF Resolution 14/2023)

I just got an email from my bank saying I need to formally register with AFIP. It is citing UIF Resolution 14/2023 which seeks to prevent money laundering and financing of terrorism. It says they need to better understand my financial situation and origin of my income. It says if I don't...

www.expatsba.com

 

[Digital Nomad]

Yes, we do buy things with the credit cards. For example, Coto always has daily discounts on different bank cards, be it debit, cash or credit. See the charts below. Each day of the week the discount is offered on different banks and cards, etc. Also, different stores (if the prices are high) normally offer payment in installments either 3 or 6 cuotas. I haven't seen the 24 months of payment but I guess it has to be something very expensive for you to pay in such a long stretch. Mostly I've seen only either 3 or 6 cuotas e.g. a few days ago we bought two pairs of hiking shoes that cost a little over 300,000 pesos and the store offered 0% interest in 6 cuotas.

View attachment 3951
View attachment 3952

Thank you. @Jakoval can you explain the process for signing up for that Coto discount card program? I asked my girlfriend but she didn't have one. I'd love to ask her to sign up for that. If you can walk me through the process I would appreciate it.

 

[Flamingo]

We will investigate about AFIP and monitributo. She is currently unemployed but it sounds like at least having a bank account is important. Even if it is a small balance. Any benefits of obtaining a store card? How do they determine if she is eligible? We can see in some situation where we might take advantage of 12 month no interest for somethings. However does this help with her credit in anyway? Thanks

What happens if someone defaults on a credit card/store card? I am assuming there are some levels or credit worthiness in BA.

If she is unemployed and a foreigner it is doubtful that she would get a credit card especially considering she just got her DNI. Stores I am not aware have credit cards. Here in Argentina credit cards are with the bank. People use them to buy things with the payment plan but bank usually is the one that offers that and more and more they are seeing what income you make.

It is probably doubtful a bank would give credit to an unemployed foreigner with no DNI. Which country is your girlfriend from?

 

[Vero]

I would not worry about trying to build credit in Argentina. It's not common here.

 

[Avocado]

This is what most locals have to do in order to afford things. I also use these Coto and store discounts. Every little bit helps. Many items have 6 quotos and larger electronic items can have the extended 0% payments. My friends have to do that when their household appliances break down.

It is very difficult times now.

Agree with you Larry. All the people struggling here to pay bills. A shame what Milei is doing laying off so many workers.