Credit history for Turkish citizens

Let’s talk a little about the opportunities that the Republic of Turkiye provides for its citizens.

“Loans”

Many of my clients have already become Turkish citizens through the purchase of a home, and this article is for them, as well as for those who plan to obtain citizenship.

In Turkiye, the credit system works on a scoring system, the higher your scoring, the lower the interest rate on the loan and the larger the loan amount.

It is very popular among Turkish citizens to use loans, especially when purchasing real estate.

There are several reasons for this:

1) High inflation. Loans in lira, even at a high interest rate, are profitable because... the inflation rate almost always exceeds the loan interest rate.

2) State subsidies. Given the unstable economic situation and the need to support both citizens and the construction sector, the state provides preferential loan programs for certain social groups of the population with a very low interest rate.

Credit programs are not available for foreigners, BUT, if you are going to obtain Turkish citizenship, then it makes sense to start building your credit history in advance.

How to do this?

First, you need to show that you are a solvent and responsible bank client.

To do this, immediately, while not yet a citizen, get a credit card and regularly use the credit limit, paying it off as you go.

Of course, credit cards for foreigners are a conditional option.

Because when issuing a credit card, you must put a full limit on the deposit and it is in the amount of this limit that you can manage the money, but even such simple operations will allow you to begin to build a good credit history, which will help you in the future when you receive citizenship.

In any case, you spend money from the card, but in the case of a credit card, you earn your credit score at the same time.

After receiving citizenship, you will be able to apply for a bank loan on the same basis as locals.