Expats can apply for credit cards

[lomuamart]

Could have put this in news, but thought it sits better here. I missed this yesterday, so for all you who have been turned down for a credit card here, it's now possible to get one as long as:

Expats can apply for credit cards
By Ekarin Bumroongpuk
The Nation
Published on July 3, 2008

But Thai banks set guidelines on minimum local work experience and monthly income for foreign customers wishing to use plastic


This is the second in a series about financial products for expats gathered by The Nation. Having previopusly covered procedures for opening deposit accounts for foreigners, this is about credit-card applications.

For a credit-card application, each card issuer requires a work permit and passport from foreign applicants.

For expats, domestically issued credit cards will allow you to receive benefits from regular retail promotions, lucky prize draws, discounts and loyalty programmes. By using local cards, foreigners can also save by not having to pay the foreign-exchange fee charged when using foreign-issued credit cards in Thailand.

However, each bank has different conditions for credit-card applications.

The Bangkok Bank credit card is available to foreign applicants who are permanent residents or have had a work permit for at least one year, while other conditions are the same as for Thai applicants.

Kasikornbank requires foreign customers to have a minimum of one year's work experience in Thailand to apply for a credit card, with a minimum monthly income of Bt50,000.

They must also provide a credit bureau's authorisation, and their work permit must be valid for at least six month after the application date. Customers will be informed of the approval result within 16 days for applications in Bangkok and 19 days upcountry.

Siam Commercial Bank requires a work permit and minimum monthly salary of Bt100,000, compared with Thai applicants' minimum income of Bt15,000. The bank also needs foreign customers to show a bank statement covering the past six months.

Krung Thai Bank requires foreign applicants to have had a work permit for at least two years, but their requirement for minimum monthly income is Bt15,000, the same as for Thai applicants. They must also show a bank statement covering the past three months and their passport.

TMB Bank offers two choices of credit-card applications for foreigners. The first requires lending deals with corporations of at least three years and a minimum credit line of Bt30 million. Expats employed by these companies are eligible to apply for a TMB Bank credit card. A work permits must also be shown.

The second choice is offered to individual foreigners who open a fixed-deposit account with the bank. They must use the account as collateral for their credit-card application and will receive a credit line of not more than 80 per cent of the deposit amount.

Bank of Ayudhya requires three years' local work experience and a minimum monthly income of Bt50,000 for a classic card and one year's local work experience and a monthly salary of Bt100,000 for gold and platinum cards. Self-employed customers should have average cash flow in their bank account of Bt350,000 a month or more for the classic card and Bt700,000 or more for gold and platinum cards. Applicants must submit copies of their passport and work permit valid for at least six months. Company employees need a copy of a payroll slip and a bank statement covering the past six months.

Remember that if any of your credit cards has been lost, stolen or retained by an ATM or if you suspect you have been the victim of fraud, contact your card issuer immediately.

In cancelling your card or putting a hold on your account, you will be liable for all transactions made before notifying the bank.

[buksida]

Good luck with that using banks in Hua Hin, tried before with more than adequate funds and six years on the work permit ... you guessed it "farang mai dai".

Apparently these things are easier in Bangkok which is a metropolitan city that recognizes the fact that some foreigners do work and we're not all tourists!

Kasikorn do offer a "web card" facility which is basically a credit card number and expiry date that you can use online. It acts like credit but actually debits the amount straight from your account. Useless for anything outside Thailand though.

[STEVE G]

Also Bangkok Bank announced recently that they will do mortgages for Farangs now, but it was also aimed at the well heeled market. I forget the details but I think the minimum was $300,000.

[Nereus]

Also Bangkok Bank announced recently that they will do mortgages for Farangs now, but it was also aimed at the well heeled market. I forget the details but I think the minimum was $300,000.

Have not had the need to look into this, but was told a few days ago by somebody that has, that it has to be with the Singapore Branch of the Bank, and repayments have to be made in Singapore. It appears that they are doing it that way to tap into the Singapore investment market.

[STEVE G]

Nereus, I just had a look on the Bangkok Bang web-site and as you say, they will give a foreigner a mortgage for just a condominium in Thailand due to ownership issues, and financed through the Singapore branch.

[squire]

I used the Bangkok Bank Singapore Branch late last year for a loan to finance the purchase of a Bangkok condo. The loan had to be be booked offshore (hence SG branch) due to the requirement that for foreigners buying in their own name, the funds must be transferred from offshore and then exchanged into baht in Thailand.

The process was very time-consuming when compared with dealing with a typical retail bank branch.....it took 5 weeks for the approval, then another 2 weeks for the contract. I believe they re-organized last month so they should be able to provide more efficient service now. The pricing is very high in terms of the loan application fee of US$1,750 and interest rate of 6% p.a., & expensive legal firm etc.

Clearly, the alternative of borrowing onshore in baht (if property was purchased in a Thai name) would have been cheaper, however, I took this approach as it may eventually assist with permanent residency application (under the investment category) in the future.

[Guess]

Most merchants go online now so why can't the banks issue a no credit Visa card. I.e you deposit 10,000 Baht and continue to use it until it reaches your credit limit of zero. This way at least you could book hotels, flight and purchase mail order goods more easily.

For some reason none of these merchants will accept Electron cards which is exactly what they do.

"farang mai dai".

What she should have said was "Thai lady work for Bank in Hua Hin Mai dai".

I was told this about five years ago and at the time a manager was present and he told me there was no problem with a work permit. I have heard that many times since so I don't think it is anything new.

[Super Joe]

You can act as guarantor for your Thai wife to get mortgage on a house and land. She has to have been working.
If her salary does not meet their usual minimum requirement and/or does not meet the mortgage repayments, they may still give the mortgage with you as guarantor, even if you work and are paid outside Thailand.
The less criteria you meet the less the % ratio they may loan. Some banks do this in Thailand.

SJ

[Guess]

You can act as guarantor for your Thai wife to get mortgage on a house and land......................they may still give the mortgage with you as guarantor, even if you work and are paid outside Thailand.

SJ

True Joe, but that is a secured loan and the Bank hold on to the Tabien Baan. The same with a vehicle.

Visa cards are unsecured so much more difficult. The banks are still decades behind the west with credit but catching up fast.

[Vital Spark]

We have an account with Abbey Offshore and they've just sent us a really a***y letter asking for details of our salary, collateral in our house (joke ) we don't own one, salary slips, letters from employer, etc. They really are the pits. I'd love to tell them what to do with their aggressive letter, but I fear they may freeze the account. Help!

We have a few thousand quid that we want instant access to - if we need to. We'd also like a debit (not credit) card so that we can book flights, etc. on line.

Does anyone know of a farang-friendly bank in Hua Hin who would like to use our money? We use the Thai Military Bank for our day-today living here, as our wages are paid directly to them, but I don't think they'll issue debit cards. Oh, and a little bit of interest would be nice...

VS

[Guess]

I have heard very negative stories about TMB's customer service.

Bank Bangkok issue Visa Electron Cards attached to their savings account and in Hua Hin you will get Thai rates of interest on the account for what it's worth.

As for debit cards and ordering plane tickets, I am not sure if they take them. Unless things have changed in the last two years they were not. I am not sure why but it could be two things. With a debit card they can only charge you the same amount as if you paid in cash but they still have to pay an acquisition charge. Additionally every transaction has to go on line which may mean some software upgrades to POS machines that they do not want.

Maybe it is something else altogether. Check the airlines and travel shops first to see what cards they acquire.

[STEVE G]

As for debit cards and ordering plane tickets, I am not sure if they take them.

I certainly have had no problems buying air tickets with a UK Visa debit card. The only thing I can't do is hire a car with one in the UK, apparently because they get charged for the deposit transaction with debit cards.

[lomuamart]

I've also booked flight tickets here in HH with a Barclays debit card.

[Gutte]

Lomuamart wrote:

Bank of Ayudhya requires three years' local work experience and a minimum monthly income of Bt50,000 for a classic card and one year's local work experience and a monthly salary of Bt100,000 for gold and platinum cards. Self-employed customers should have average cash flow in their bank account of Bt350,000 a month or more for the classic card and Bt700,000 or more for gold and platinum cards. Applicants must submit copies of their passport and work permit valid for at least six months.

Actually, I have, since several years, a "Platinum" card from Bank of Ayudhya and I have never had a work permit. Instead, I had to agree to block 250 000 B on the account (the balance can never be lower) to get a 200 000 B spending limit. Now I can hear you shout "what´s the use?", but it suits me fine. I can use the card for purchases on the Internet, or abroad, and I don´t need to get a lot of cash to go buy something expensive. Also, I can get points from purchases and these points can be traded for points in for example frequent flyer programmes.

I have to admit I don´t use the card very often these days, but it was more than handy when I was building a house and bought material and equipment more or less on a daily basis. I can recommend it!

[lomuamart]

Good for you, Gutte.
My OP was a straight lift out of The Nation. It'll be interesting to see if any of the listed banks will be flexible, especially with regard to Work Permits now.
Remember the days when most banks wanted to see a WP just to open an account? Great if you're retired and just wanted to remit funds over here from home to live I don't think that regulation lasted long - at least in practice.