View Full Version : Finance Will a bad credit rating in the UK affect me in Tenerife?

04-05-2013, 13:53
will bad credit in the uk affect us in tenerife

04-05-2013, 16:23
The spanish banks are broke and you won't get any loans anyway .

04-05-2013, 16:45
Don't know the answer to your question, but as the main credit reference agencies Experian and Equifax are global I would think it's quite likely.

Of course it depends what information you have to supply, if its previous UK address then any information about you will obviously show. If you're tempted to give a wrong address then previous info may not be linked to you, but NO credit file or history is sometimes just as bad.

04-05-2013, 17:36
if you owe money in the uk, what's the consequences once your in tenerife

04-05-2013, 18:00
The effect of a UK debt, certainly if there's a judgement, can be uncertain, but banks do run routine credit checks, as someone mentioned, so it could have implications on the type of account, credit card, overdraft, flexibility you receive.

It's possible for action to be continued wherever you are, if the person/organisation finds you and has a certain buggeration attitude towards getting its money. It rather depends how much is owed and how much they want to spend persuing you. Why not simply reach an agreement?

04-05-2013, 18:55
If you want unsecured finance then no. Bank accounts can be opened with no credit check whatsoever.
Any unsecured loans, overdrafts etc will be based on your declared, visible income here which you will need to have for at least 12 months before any successful application.

Secured loans ie: a mortgage will often require a UK credit search until you have been here at least 3 years - sometimes up to 6 with some banks.

Financial institutions may pursue you (or attempt to) if there is a large amount owed. After 6 years with NO CONTACT WHATSOEVER (including any acknowledgement of any letters, emails, phone calls) then the debts cannot be recovered.

What you need to carefully consider though is that moving here and being able to stay here is not easy. Many, many people end up returning so its wise not to burn all of your bridges in the UK. It may be a better option to declare bankruptcy. That is cleaned from your record after 6 years and there would be no chance of anyone pursuing you for outstanding debts.

At some point in the future all financial institutions in Europe will be able to swap data on individuals but this has been an aim for a longtime with little progress made.

04-05-2013, 19:22
what would they think is a large amount

04-05-2013, 19:27
I dont think they'd bother for 10k as the costs of retrieval are quite high but if you owe them 60k, thats another story.
Its the same here, if you leave Spain owing money to a bank, they can pursue you in the UK if they deem the debt to be worth chasing. I think in the future it will become a lot easier for banks but for now it is expensive for them .

04-05-2013, 19:30
thanks for that

05-05-2013, 23:59
they can chase all they want but if you are not earning anything there is little they can do. Here in Spain they might try and embargo earnings assuming you had any.

Here is a link to a spanish embargo calculator that calculates just how much could be taken out of your wages to pay the gangsters back. Once you earn more than the basic 645 odd euros a month they could apply to the courts to embargo a proportion of every euro over the 645 euro starting point.


but if you owed 60 grand , and earnt 1000 euros a month here it would take them 564 months at 106 euros a month to pay back...hardly worth the effort. Thats 47 years ( ok i don't include inflation but you get the idea)