When traveling overseas, a person needs to have ready access to their funds or to a credit line. Credit cards are one option for having accessible funds without resorting to carrying cash. Legitimate offshore credit cards typically carry the Visa or MasterCard emblem and are accepted at over 14 million locations worldwide. Card holders can get cash advances from over 100,000 ATM and banking institutions and make payments easily from their offshore bank accounts. They are very similar to domestic cards. The differences and the costs associated with offshore cards are something to be considered before making strides to acquire one.
There are four main similarities between domestic credit cards and legitimate offshore credit cards. First, both cards can be used for travel and emergency services like insurance, procuring rental cars (and discounts), long distance phone services and card/cash replacement. Both domestic and offshore credit cards send monthly statements and offer online access to account information. Finally, they both offer rollover balances with regular monthly payments. This is where the similarities between domestic and offshore credit cards end.
The difference between domestic credit cards and legitimate offshore credit cards is in the security deposit requirement. Domestic cards are unsecured, based on your credit history, and your limit depends on your creditworthiness. Increasing your domestic card limit most often requires revisiting your credit report and getting approved for the increase. Offshore banks, however, want to see credit history in their country. They want your bank accounts to be in their home country. Meeting those standards is almost impossible for the average traveler or international worker. For this reason, offshore banks offer “credit” cards secured with deposited funds. No credit checks are required. The card limit is raised when the card holder deposits additional collateral funds. The required security deposit ranges from 125-150% and can go as high as 200%. A “credit” limit of $20,000 USD would require at least a $25,000 security deposit. These security funds are used by the banking institution to further their investment properties. You may receive interest on the deposit but it will be miniscule in comparison to the return on investment the bank received on your funds.
The costs involved in acquiring an offshore credit card are extensive. The initial set up fee, covering the cost of establishing the trust account and card, can range from $100 to several thousand dollars. Beware of initial fees in the thousands. Do your research carefully. Annual fees begin at $100. There are also transaction fees for ATM usage. Most often it will be $5-$10 OR 2-3% of the transaction total – whichever is greater. The greatest cost will be the opportunity cost of losing interest on your secured funds. It is important to note that since these offshore banks are using the security deposit to fund their own investments they require a minimum of six months, after cancellation of the credit card, before releasing the security deposit back to the account holder.
Legitimate offshore credit cards provide easy access to credit for anyone willing and able to have their funds tied up for the long term. The convenience of the card must be weighed against the cost of that convenience. Often, a debit card will serve a similar purpose.
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ExpatFinder.com is a website designed to bring support to people and families living abroad or planning to move overseas. It provides the user with information to help make informed decisions when looking for International health insurance with global cover around the world. Expat life insurance are explained for review at the same time as a choice of selected International medical insurance companies are displayed and free quote by direct contact available. Other sections of the website include online broker and offshore banking reviews including a choice of offshore savings accounts to make the most of your expat money. Users can also transfer money abroad and learn more about QROPS and overseas foreign currency exchange. The one stop place to answer all your needs will bring you information on expat health insurance and US Expat Tax. Should you be preparing to move abroad or living overseas you might be looking for a room for rent or else expat often start with an extended stay in serviced apartments