wife is blacklisted???

[expatsailer]

I'm thinking about buying a house and some land. A few years back my wife cosigned a car loan for her brother (I know, typical dumb Thai move) When I asked her about getting a bank loan for a home she told me she was blacklisted for another 2 years. I could just pull money from my vanguard account and pay in cash, but i really don't want to take that approach. Can anyone shed some light on this "blacklisted"??

[Peterw42]

My understanding is if you default on a loan, credit is cut off indefinitely (blacklist at credit bureau), even if you then payback the loan (or hand back the car etc) its still a further 3 years on the blacklist with no credit. 

The fact that your wife quotes a time frame would indicate the debt was eventually repaid/recovered and she is waiting out the 3 years.

After the 3 years it appears to be business as usual, borrow again, credit cards etc.

 

[expatsailer]

3 minutes ago, Peterw42 said:

My understanding is if you default on a loan, credit is cut off indefinitely (blacklist at credit bureau), even if you then payback the loan (or hand back the car etc) its still a further 3 years on the blacklist with no credit. 

The fact that your wife quotes a time frame would indicate the debt was eventually repaid/recovered and she is waiting out the 3 years.

After the 3 years it appears to be business as usual, borrow again, credit cards etc.

Thanks Peter,

after the time is up, can this adversely effect her chances of a loan? would it be like a credit score in US?

[Peterw42]

22 minutes ago, expatsailer said:

Thanks Peter,

after the time is up, can this adversely effect her chances of a loan? would it be like a credit score in US?

My wife defaulted on a credit card years ago and although she eventually paid it back, spent 3 years in the naughty corner. After that she went on to get a mortgage, CCs etc and now has a clear credit rating. It appears to be business as usual after the 3 years but maybe dependant on other history, the amount of the default etc.

Edited March 17, 2018 by Peterw42

[scorecard]

 

Also depends on which bank or finance institution she approaches.

 

Like any country some banks are much more serious than others about all loans, and when it comes to a person who has a bad history (and yes Thailand does a have a central registry on this subject), they will never ever loan to you / give you a credit card etc. Other banks etc., take the risk.

 

Keep in mind that the fact the 2 or 3 years 'no loan / no credit card' period has now expired doesn't mean there's no further risk for the bank.

 

 Good luck.

[osandpo]

The bank or finance company she originally had a problem with will keep the record even after 3 years and is very unlikely to make new loans if the original debt wasn’t fully repaid. 

 

Other lenders will need to rely on the credit bureau, NCB, and if they see an old unresolved debt it’s extremely unlikely they’ll lend - unless perhaps if there’s a co-borrower whose income proof is strong enough to cover the whole repayment easily.

 

Your wife can take her ID card to check her updated record at any NCB office for 100 baht or  at some banks Thanachart, Krungthai and, I think, GSB for 150 baht

 

NCB stops reporting the history after 36 months. 

NCB does have a credit scoring system which is largely based on more recent borrowing info, but until last year at least most banks relied more on their own internal scores - a mix of NCB data with their own internal statistical analysis. 

 

If your wife has a bank savings account which she uses regularly and puts money through, that’s the bank to start with if you both need the loan before her 3 years is up. It’s not certain but some banks have special rules favouring good existing customers 

 

Note: some of the “car for cash” leasing company lenders upcountry who lend to lower income earners almost on a pawnshop style basis against the blue books for their existing cars are not NCB members. In that case the record wouldn’t show up. 

Edited March 18, 2018 by osandpo

[expatsailer]

Awesome answers guys.

I'm still looking for housing options. rent vs buy. I'm not looking to buy in the near future, but I'm the type to plan years in advance. So this info is very beneficial.

[DJ54]

Rent is a good option if not planning on staying here long. House with land as long as you trust your wife is ok. But unless it’s changed the land can not be in your name. You can build a house a put a 30 year lease on it in your name. 

[jackdd]

53 minutes ago, DJ54 said:

You can build a house a put a 30 year lease on it in your name. 

But if it's his wife's land then this contract doesn't help him anything because it can just be voided by her if they should divorce.

 

Before you buy (it will be in your wife's name because you can't own land as a foreigner): Do you either trust your wife 1000% and / or are willing to walk away from the house / land in case you guys get divorced?

Other than that, this here is Thailand... recently somebody opened a thread here because his neighbour started running a noisy rice mill every day... could also be anything else that you can imagine that could annoy you (noise, smell...). If you bought the house there is not much that you can do but accept it. If you rent a house you can just move if it annoys you too much.

 

[Djw6]

Why buy a house? Buy a condo freehold in your name.