For digital nomads, freedom is the ultimate currency; you can work from Bali today and Lisbon tomorrow. But when it comes to traditional finance, freedom doesn’t always pay the bills. One of the hidden challenges of life abroad is building and maintaining credit in a system that rewards stability. Without it, renting an apartment, getting a loan, or even signing up for certain services can become a struggle. In this guide, you’ll discover why credit matters even when you’re constantly on the move and practical ways to build it abroad.
Read also: What nobody tells you about your first year living abroad
1. Renting trouble
Finding an apartment abroad can be challenging when you don’t have a credit score. Landlords want proof you can pay on time, and without it, you’ll often face rejection or be asked for extra guarantees. Instead of focusing on settling in, you’re stuck explaining yourself, sometimes losing the perfect place to someone with stronger credit.
Read also: Top digital nomad cities for long-term rentals in Europe
2. Costlier loans
When lenders don’t see a credit history, they assume risk. Even with a steady income, you might face higher interest rates, stricter terms, or flat-out rejection for loans and credit cards. In practice, you pay more for the same opportunity, while others with credit scores access cheaper, better financial options.
3. Service barriers
If you want a phone contract or internet service abroad, many providers check your credit first. They may demand a hefty deposit or refuse entirely if you don't have a proper score. That ties up money you’d rather use for travel, work, or experiences, making basic services unnecessarily expensive when all you’re missing is a track record.
4. Missed perks
A strong score can unlock reward cards, better insurance rates, and higher spending limits. Without it, you miss out on perks that add convenience and savings. Over time, the lack of credit history quietly limits financial freedom, something no nomad wants while exploring the world.
Begin by securing a credit card or account that reports to credit bureaus in your home country or the country where you are hosting. Many banks and fintech platforms offer options for travellers and expats. A secured credit card can be a powerful first step in proving reliability and beginning your credit journey abroad.
Read also: How digital nomads can open bank accounts in Europe easily
Timely payments are non-negotiable when building credit. Set up autopay or calendar reminders to avoid missing due dates on credit cards, loans, or utilities. Each on-time payment strengthens your record and proves consistency to lenders. For nomads, discipline in this area is crucial and delays are harder to excuse when you’re overseas.
Use credit, but don’t max it out. Aim to spend below 30% of your available limit and pay off balances regularly. This shows lenders you can manage credit responsibly without overextending. For nomads juggling multiple currencies and expenses, keeping balances light protects both your score and your financial flexibility abroad.
The longer you’ve responsibly managed credit, the better. Lenders look for stability over time, not just recent activity. That’s why keeping older accounts open, even if you don’t use them often, can work in your favour. A strong, well-managed history reassures lenders you can be trusted with long-term financial responsibilities.
Keep tabs on your credit reports and scores, even while travelling. Many services let you check online, ensuring errors don’t go unnoticed. Monitoring also helps you see progress and stay motivated. As a nomad, this step keeps you in control, no matter how far from home your financial footprint extends.
Read also: The best online jobs for digital nomads around the world
Living and working abroad comes with unique financial challenges, but managing your money doesn’t have to be one of them. Grey empowers nomads to receive payments from anywhere in the world instantly and securely.
Open your Grey account today or download the app and stay financially connected no matter where your journey takes you.
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