Israeli Credit Cards & Credit Scores - Complete Guide
Israeli Credit Cards & Credit Scores -
Complete Guide
Understanding the Israeli Credit System
Key Differences from Other Countries (Especially US)
No Central Credit Score System:
ï Israel does **NOT **have a FICO-style credit score
ï No single number that determines creditworthiness
ï Each bank maintains its own internal assessment
ï Credit history is tracked but not standardized
Credit Bureau System:
ï Two main credit bureaus: Creditinfo **and **Zikukit
ï Banks report data to these bureaus
ï They track negative events (defaults, late payments) more than positive history
ï Less comprehensive than US credit bureaus
Building Credit Takes Time:
ï New immigrants start with **zero credit history **in Israel
ï Banks are conservative with new customers
ï Typically takes 6-12 months to get first credit card
ï Building substantial credit takes 2-3 years
Getting Your First Israeli Credit Card
The Cold Reality for New Immigrants
Timeline expectations:
ï **Month 1-3: **Very unlikely to get credit card (except special programs)
ï **Month 6-12: **May qualify for basic credit card with low limit
ï **12-24 months: **Better cards and limits become available
ï **2+ years: **Access to premium cards and higher limits
What Banks Consider
Primary factors:
**1. Length of account history **- Time with the bank
**2. Regular income deposits **- Salary going into account
**3. Account balance **- Maintaining positive balance
**4. Employment stability **- Proof of steady employment
**5. No negative marks **- No bounced checks, overdrafts
**6. Age **- Minimum 18, better odds if older
Documentation needed:
ï Teudat Zehut (Israeli ID)
ï Proof of income (payslips, employment contract)
ï Bank account statements (3-6 months)
ï Sometimes: Tax returns, employer confirmation
Strategies to Get Your First Card
1. Ask your employer bank:
ï If salary deposited at specific bank, they have proof of income
ï Better approval odds where you have relationship
ï Some companies have arrangements with banks for employees
2. Secured credit card:
ï Less common in Israel than US
ï Some banks offer cards backed by deposit
ï Ask specifically about "kartis ashrai muvcachat" (secured card)
3. Start with debit card with credit features:
ï **"Kartis Chiyuv Meshutaf" **(shared debit card)
ï Not true credit but works like credit
ï Shows payment discipline
4. New immigrant programs:
ï Bank Hapoalim, Leumi have special Oleh programs
ï May offer credit card sooner
ï Lower limits initially
ï ASK specifically about Oleh benefits
5. Build relationship first:
ï Maintain account 6-12 months
ï Keep positive balance
ï Regular income deposits
ï Use debit card actively
ï Apply after building history
6. Joint account holder:
ï If spouse/family has Israeli credit, joint account helps
ï Not always available but worth asking
Types of Israeli Credit Cards
Card Categories
1. Basic/Standard Cards (רגיל כרטיס)
ï Low/no annual fee
ï Basic benefits
ï Lower credit limits
ï Good for building credit
2. Gold Cards (זהב כרטיס)
ï Moderate annual fee (₪100-300)
ï Travel insurance
ï Purchase protection
ï Extended warranty
ï Airport lounge access (limited)
3. Platinum/Premium Cards (פלטינום כרטיס)
ï High annual fee (₪300-1,000+)
ï Extensive travel benefits
ï Concierge service
ï Higher limits
ï Better insurance coverage
4. Business Cards (עסקי כרטיס)
ï For self-employed/business owners
ï Expense tracking
ï Higher limits
ï Business-specific benefits
Payment Types
Israeli credit cards work differently:
1. Credit Card (Kartis Ashrai - אשראי כרטיס):
ï True credit card
ï Can pay in installments (tashlumim - תשלומים)
ï Interest charged on balances
ï Most common type
2. Deferred Debit (Chiyuv - חיוב):
ï Charged to checking account
ï Payment deferred 30-45 days
ï No installments
ï No interest (if paid on time)
ï Lower fees
3. Immediate Debit:
ï Charged immediately like debit card
ï Least common for credit cards
Installment Payments (Tashlumim)
Unique Israeli feature:
ï Can split almost any purchase into monthly payments
ï Common to pay in 2-36 installments
ï Interest-free if merchant offers (stores often do)
ï Bank charges interest otherwise (~15-25% annually)
ï Choose installments at point of sale
Examples:
ï Buy ₪1,000 item → Pay ₪100/month for 10 months
ï Furniture stores often offer 12-24 month interest-free
ï Electronics commonly 3-6 months interest-free
ï Large purchases can be spread over years
Israeli Credit Card Brands
Card networks:
ï **Visa **- Most widely accepted internationally
ï **Mastercard **- Very common
ï **Isracard **- Israeli network, less useful abroad
ï **American Express **- Growing but less accepted in Israel
**Tip: **Get Visa or Mastercard for international use
Credit Card Costs in Israel
Annual Fees
Standard range:
ï Basic cards: ₪0-150
ï Gold cards: ₪100-300
ï Platinum cards: ₪300-1,000+
ï Premium cards: ₪1,000-2,000+
Fee waivers:
ï New immigrants often get 1-2 years free
ï High account balance may waive fees
ï Regular spending thresholds
ï Always negotiate fees
Interest Rates
If carrying balance:
ï Annual interest: ~15-25% (varies by bank)
ï Very high compared to savings rates
ï Always try to pay in full
Installment interest:
ï Merchant-offered: 0% (promotional)
ï Bank installments: 15-25% annually
ï Read terms carefully
Transaction Fees
Foreign transactions:
ï Currency conversion: 1.5-2%
ï Foreign transaction fee: 0.5-1.5%
ï Total: ~2-3.5% on foreign purchases
ï Some premium cards waive these
Other fees:
ï Late payment: ₪50-100
ï Over-limit: ₪50-100
ï Cash advance: 2-4% + interest
ï Replacement card: ₪30-100
Benefits & Rewards
Common Benefits
Standard cards:
ï Purchase protection (limited)
ï Extended warranty (extra year on items)
ï Online shopping security
ï SMS alerts
Gold/Premium cards:
ï Travel insurance (varies widely in coverage)
ï Flight delay insurance
ï Lost luggage coverage
ï Rental car insurance (secondary)
ï Airport lounge access (limited lounges)
ï Concierge service
ï Purchase protection (better coverage)
Rewards Programs
Less generous than US cards:
ï Points accumulation: ~0.5-1% value
ï Cashback: Rare, usually 0.5-1%
ï Miles programs: Limited options
ï Specific merchant benefits (partnerships)
Popular programs:
ï **Multipass **- Multi-merchant points
ï **Max **- Various bank partnerships
ï **Club hotels **- Hotel points
ï Airline partnerships (El Al, etc.)
**Reality check: **Israeli credit card rewards are far less generous than US cards. Don't expect 2-5% cashback.
Credit Limits in Israel
Initial Limits
First credit card:
ï Typical: ₪1,000-5,000 ($250-1,300)
ï Very conservative
ï Increases over time with good payment history
Established credit:
ï After 2-3 years: ₪10,000-50,000
ï Premium cardholders: ₪50,000+
ï Depends on income and history
Increasing Your Limit
How to request:
ï Call bank or use app/online banking
ï Usually requires updated income documentation
ï May need to wait 6-12 months between requests
Automatic increases:
ï Banks periodically review and increase
ï Good payment history triggers increases
ï Major life changes (new job, raise) - notify bank
Building Credit in Israel
The 6-12 Month Plan
Months 1-3:
ï ✓ Open Israeli bank account
ï ✓ Set up direct deposit of salary
ï ✓ Use debit card regularly
ï ✓ Maintain positive balance
ï ✓ Avoid overdrafts or bounced checks
ï ✓ Pay all bills on time
Months 4-6:
ï ✓ Continue positive banking habits
ï ✓ Consider applying for credit card
ï ✓ If denied, ask why and what's needed
ï ✓ Build relationship with personal banker
Months 7-12:
ï ✓ Apply for credit card if not yet approved
ï ✓ If approved, use card regularly
ï ✓ Always pay in full or on time
ï ✓ Never miss payment
ï ✓ Keep utilization low (<30% of limit)
Ongoing:
ï ✓ Pay all bills on time (not just credit card)
ï ✓ Maintain healthy bank balance
ï ✓ Request limit increases annually
ï ✓ Consider adding second card after 1-2 years
What Hurts Your Credit
Major negative marks:
ï **Bounced checks (hamchaot chozrot) **- Very serious in Israel
ï **Hotzaot lapoal **- Court judgments for debt
ï Late payments on loans
ï Defaults or collections
ï Bankruptcy
ï Overdrafts
**These stay on record for years **and can severely limit credit access.
What Helps Your Credit
ï Long account history at same bank
ï Regular income deposits
ï Positive account balance
ï On-time payments
ï Multiple accounts managed well
ï No negative marks
ï Stability (same address, same job)
Checking Your Credit Report
How to Access
Creditinfo:
ï Website: www.creditinfo.co.il
ï Request your credit report
ï Cost: ~₪50-100
ï See what banks see about you
Zikukit:
ï Alternative credit bureau
ï Similar process
What you'll see:
ï Open accounts
ï Credit inquiries
ï Negative marks
ï Public records (judgments, etc.)
ï NOT a credit score number
Disputing Errors
ï Contact the credit bureau directly
ï Provide documentation
ï Banks must investigate
ï Can take 30-60 days
ï Important to correct errors
Alternative Payment Methods in Israel
While Building Credit
1. Debit Card (Kartis Chiyuv - חיוב כרטיס)
ï Direct bank account charge
ï Widely accepted
ï No credit check needed
ï Available immediately
2. Bit (ביט)
ï Israeli instant payment app
ï Linked to bank account
ï Extremely popular
ï Person-to-person and merchant payments
ï No fees
ï Works between all Israeli banks
3. Prepaid Cards:
ï Load money in advance
ï Use like credit card
ï No credit check
ï Good for online shopping
ï Some travel cards available
4. Digital Wallets:
ï Apple Pay (needs Israeli credit card)
ï Google Pay (needs Israeli credit card)
ï PayPal (can link to foreign cards)
5. Cash:
ï Still widely used
ï Keep some for small vendors, tips
ï Markets, small shops may prefer cash
Special Situations
US Citizens in Israel
Managing both systems:
ï Keep US credit cards active (maintain US credit)
ï Many US cards work well in Israel
ï No foreign transaction fee cards useful
ï Consider cards like Chase Sapphire, Capital One Venture
ï Build Israeli credit separately
FATCA reporting:
ï US citizens must report Israeli accounts to IRS
ï Israeli credit card = foreign financial account
ï File FBAR if total foreign accounts >$10,000
Self-Employed/Freelancers
More difficult to get credit:
ï Banks want proof of stable income
ï Need tax returns
ï May need 2-3 years of returns
ï Consider business credit card
ï Often need personal guarantee
Documentation needed:
ï Tax returns (2-3 years)
ï Bank statements showing income
ï CPA letter confirming income
ï Business license
Students
Limited options:
ï Most banks require income
ï Parents can be guarantors
ï Student accounts may offer basic cards
ï Start with debit card
Retirees/Pensioners
Foreign pension counts as income:
ï Prove regular pension deposits
ï Banks accept foreign pensions
ï May need proof of amount/duration
ï Consider bank where pension deposited
Tips for Success
**Do's **✓
**1. Start building credit immediately **- Open account, deposit salary
**2. Pay everything on time **- Bills, rent, credit card
**3. Use credit card regularly **(once you get one) - Shows payment discipline
**4. Pay in full when possible **- Avoid interest
**5. Keep utilization low **- Use <30% of credit limit
**6. Monitor your account **- Check for fraud, errors
**7. Build relationship with banker **- Personal contact helps
**8. Ask about Oleh benefits **- Don't assume they'll offer
**9. Be patient **- Credit building takes time
**10. Keep foreign credit active **- If you have it from home country
**Don'ts **✗
**1. Never bounce a check **- Extremely damaging in Israel
**2. Don't max out credit cards **- Shows poor management
**3. Don't miss payments **- Even one can hurt
**4. Don't apply at multiple banks simultaneously **- Looks desperate
**5. Don't close old accounts **- Length of history matters
**6. Don't ignore bills **- Everything affects your record
**7. Don't use cash advances **- Expensive and looks bad
**8. Don't get discouraged if denied initially **- Normal for new immigrants
**9. Don't carry high balances **- Interest rates are high
**10. Don't ignore annual fees **- Negotiate or cancel if not worth it
Recommended Strategy for New Immigrants
Timeline Approach
Month 1:
ï Open bank account at major bank with Oleh package
ï Set up salary deposit
ï Get debit card
ï Download Bit app
Months 2-6:
ï Use debit card regularly
ï Maintain positive balance
ï Pay all bills on time
ï Build banking history
Month 6:
ï Apply for first credit card
ï If denied, ask what's needed
ï Consider secured card option
ï Continue building history
Month 12:
ï Reapply if previously denied
ï Should have better odds
ï Request modest limit (easier approval)
Year 2:
ï Use credit card responsibly
ï Request limit increase
ï Consider second card
ï Build stronger credit profile
Year 3+:
ï Access to better cards
ï Higher limits
ï Premium card options
ï Established credit history
Starting Position by Background
Coming from US/UK/Canada with good credit:
ï Israel won't care - you start from zero
ï Keep foreign cards active
ï Use them for international purchases
ï Build Israeli credit separately
Coming with limited credit history:
ï Same process as everyone
ï Focus on building slowly
ï Don't get discouraged
ï Time is your friend
Coming with bad credit elsewhere:
ï Fresh start in Israel (they don't check foreign credit)
ï Opportunity to rebuild
ï Don't repeat past mistakes
ï Take it seriously
Bank-Specific Notes
Bank Hapoalim:
ï Good Oleh programs
ï English-speaking service
ï Often first card after 6-12 months
Bank Leumi:
ï Similar to Hapoalim
ï Extensive branches
ï Competitive for new immigrants
Discount Bank:
ï Good for basics
ï May be more flexible
Mizrahi Tefahot:
ï Growing service quality
ï Worth comparing
Digital banks (Pepper, One Zero):
ï Harder to get credit initially
ï Better once established
ï Lower fees
Common Questions
"Can I transfer my foreign credit history to Israel?"
ï No, credit histories don't transfer
ï You start fresh in Israel
"How long until I can get a credit card?"
ï Typically 6-12 months with steady income
ï Premium cards: 2-3 years
"Will applying hurt my credit?"
ï Not like in US (no hard inquiry system)
ï But multiple rejections may be noted
ï Better to wait until likely approved
"Can I get credit card without Israeli citizenship?"
ï Yes, residents can get credit cards
ï Need resident ID and bank account
ï Same process as citizens
"What if I'm denied?"
ï Ask bank specifically why
ï What do they need to see
ï How long to wait before reapplying
ï Consider different bank
"Should I get multiple cards?"
ï Start with one
ï Add second after 1-2 years
ï Diversification helpful
ï Don't overextend
Red Flags & Scams
Beware of:
ï Offers for "guaranteed" credit cards for fee
ï Credit repair services (largely unnecessary in Israel)
ï Loans to pay off credit cards at high interest
ï Pressure to take cards you don't need
ï Cards with excessive hidden fees
Bottom Line for New Immigrants
Realistic expectations:
ï Building credit in Israel is slow
ï First year: Focus on debit card and Bit
ï 6-12 months: First basic credit card possible
ï 2-3 years: Decent credit established
ï Patience required
Your advantage:
ï Fresh start if had problems elsewhere
ï Oleh benefits can help
ï Time works in your favor
ï Good habits build quickly
Success formula:
- Stable income → Bank account
- 6-12 months good banking → Basic credit card
- Responsible use → Limit increases
- 2-3 years → Good credit access
Updated on: 02/02/2026
Thank you!