Offshore Credit Card Benefits and Drawbacks

Offshore Credit Card

An offshore credit card has both advantages and drawbacks, and in some ways these credit cards are similar to the domestic versions but they are very different in other ways. With both types you will have internet access and online options, and a monthly statement is sent out by both types of card companies. Offshore zero percent credit cards are also possible, and this is not always a benefit that most domestic cards can easily offer. The catch is that most offshore credit card companies require a deposit, which will usually range from one hundred and twenty five percent of the credit line all the way up to two hundred percent required as security.

Some of the top 10 credit cards are offshore versions and these cards have benefits like convenience and no credit checks or rejections because of a poor credit score. For expatriates and those who travel extensively outside of the USA an offshore credit card can be more practical than one from in the USA, and currencies can be quickly converted regardless of where the payment is being made around the globe. It is possible to get a very low interest credit card, or even one without any interest at all, because of the additional security provided for the card.

There are some drawbacks of an offshore credit card as well though. The application requirements are much more extensive than getting a domestic card, and several additional documents are required. The high security deposit requirement means that a fifty thousand dollar deposit could result in as little as twenty five thousand dollars in credit on the card. Another drawback is the image and reputation that offshore internet banking has. While it is completely legal to use offshore accounts and credit cards many worry about the stigma or any criminal consequences of these accounts. That is why they do not take advantage of using them.