Do you have a credit card if you live in Israel?

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Forum -> Inquiries & Offers -> Israel related Inquiries & Aliyah Questions

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amother

OP ↓

Wed, Dec 06 2023, 3:07 pm

I'm confused as to how the bank/credit system in Israel works

lostprincess

Wed, Dec 06 2023, 4:47 pm

Understandably so. It's quite different.
In Israel firstly you usually get a much lower credit limit or your credit card. Secondly when you pay anything in installments it's usually what they call "tofess misgueret" meaning the entire sum is deducted from your credit limit until it's paid off instead of only the monthly payment. Take for example you have a 5000 shekels credit and you buy an appliance of 1200 shekels in 12 installments. Your credit limit left is of 3800 shekels amd will slowly grow back with each installment you pay. Practically speaking it means your credit limit gets used up really fast and it's not so easy to extend it.
Another point is that your credit card is associated to your bank account and each month the amount you owe is automatically deducted from your account.
Hope this helps

amother

↑ OP ↓

Wed, Dec 06 2023, 6:23 pm

thanks

I meant to ask an american credit card - is it possible to have one?

is there benefit in building credit in israel through the israel credit system

seems benefits arent as much there?

amother

Burntblack ↓

Wed, Dec 06 2023, 6:24 pm

amother OP wrote:

thanks

I meant to ask an american credit card - is it possible to have one?

Yes of course
Make sure to have one that does not charge an international transaction fee

juggling ↓

Wed, Dec 06 2023, 8:09 pm

You can use an American credit card in Israel for many things (assuming you have an American bank account with money in it). But definitely get an Israeli credit card as well. There are some stores, gas stations, online sites, etc that don't take a foreign card. Also, you'll need an Israeli credit or debit card to use any of the cash transfer apps (bit or paybox) which, in my experience, you really need to have. As far as building credit in Israel, I have no idea.

theoneandonly

Wed, Dec 06 2023, 8:29 pm

You definitely can have, and can use, an American credit card in Israel. You can't do tashlumim on an American cc and sometimes random places won't accept it (for awhile yellow gas stations didn't accept American cc).
Having an American cc won't help your Israeli credit. I don't know if there's a benefit to trying to build up your Israeli credit or not

essie14 ↓

Wed, Dec 06 2023, 9:55 pm

Yes, we have income in the the US and in Israel so we still have a US credit card with no international fees (chase sapphire) and we also have an Israeli credit card.

When I was single and making all of my income in Israel I only used my Israeli CC.

amother

↑ Burntblack

Wed, Dec 06 2023, 9:59 pm

theoneandonly wrote:

You can't do tashlumim on an American cc

What do you mean?

↑ essie14

Wed, Dec 06 2023, 10:01 pm

amother Burntblack wrote:

What do you mean?

Tashlumim are interest free payments.
Every store offers this.
You buy a 5000 shekel washing machine and the store asks if you want tashlumim for 5 months. They put the charge through as such and your CC company only charges you 1000 shekel a month for that purchase.
You cannot do this on an American credit card.

amother

↑ OP

Wed, Dec 13 2023, 6:07 am

Isreaeli cc are applied for through the bank
I always understood a bank card is a debit card - not a credit card?

↑ juggling

Wed, Dec 13 2023, 6:28 am

amother OP wrote:

Isreaeli cc are applied for through the bank
I always understood a bank card is a debit card - not a credit card?

You can get a debit card through your bank, it's called "direct". You can also get a credit card through your bank. Generally they have a fairly low limit. The thing that's very different from America is that the balance on your cc is auto-deducted from your account every month. Truth is, you can change the amount deducted and carry the balance to the next month. Of course that's not a great thing to do regularly, for obvious reasons.

It's also possible to get a credit card "chutz bankai", not through your bank. With the low limits on bank cards it's become more of a necessity for many people to take an additional card. Some people get the credit card through the supermarket they usually shop in, it gives benefits when you shop in that store.

Bnei Berak 10

Wed, Dec 13 2023, 6:56 am

You don't need to take c/card via your bank. Mine are all directly with the c/card companies.
Note that some c/cards charge you a monthly fee and some not. You need to do some research.

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