Credit Card from Bangkok Bank

[lelapin]

I have had a credit card from Bangkok Bank for 7 years and used it successfully without reviewing in great detail the manner in which it operated. With all the spare time I have recently been experiencing I had a chance to review the manner in which my various accounts operated together with all the paperwork they generate.

My credit card account is available online and I know that on the 18th of each month I have to replenish the balance to a level of 20,000 baht or more. Fine.

I then found that I had another account with a book, that was opened in 2013 earning a minimum interest every 3 months that had started with 20, 000 baht and had never had a withdrawal.

This morning I went to my local branch to have explained to me the purpose of this account .

It appears that in addition to continually maintaining a balance on a monthly basis of at least 20,000 baht on my internet credit card account, I also need a separate account with 20,000 balance to act as a guarantee for my credit card. 

I know that I am now a very elderly falang who is not as bright as he used to be, but these requirements are beyond my understanding. Is there a younger more knowledgeable TV reader who can explain to me why the bank requires 2 methods to safeguard themselves with regard to me using 1 credit card.

[Upnotover]

Seems your card has a credit limit of 20,000.  Each month you pay off what you have spent to avoid paying interest and bring the balance back to 0.00.  I don't think you are really maintaining a balance of 20,000 on the card, just paying back what you use (that is how it should work).

 

The 20,000 account is what they told you, security for the credit card.  This is completlely normal.

[Mahseer]

Used to have an account and credit card with SCB and their policy was to deposit twice the monthly credit card limit in a separate account as you describe. Bangkok Bank is equal amount as you are now aware.

 

Any Thai banks out there that don't demand a separate deposit?

[Dinand]

I am on a work permit and was able to get a credit card without security deposit at SCB.

[steven100]

8 minutes ago, Dinand said:

I am on a work permit and was able to get a credit card without security deposit at SCB.

well that's great

[userabcd]

You have a secured credit card.

 

The bank gives you a credit card to use the bank credit of 20000 baht.

 

To have that card and as a hedge against risk the bank requires your to have a separate bank account with a fixed deposit of 20000 which earns interest paid into this account. This money theoretically cannot be touched or used except to withdraw the interest accrued in excess of the 20000 baht.

 

When you use the credit card, you are using the banks money and you pay interest on any outstanding balance up to the limit the bank has allowed of 20000 baht.

 

The 20000 baht in your fixed deposit does not change and is held by the bank as security if you were to default. The fixed deposit would be returned to you when and if you cancel the card after all your debts on the credit card have been paid off.

Edited June 25, 2020 by userabcd

[YT3k72Em]

17 hours ago, lelapin said:

My credit card account is available online and I know that on the 18th of each month I have to replenish the balance to a level of 20,000 baht or more. Fine.

You are probably mistaken about this part. This is what the separate account is for. The balance should be paid off each month to zero baht, not 20,000.

[userabcd]

2 hours ago, YT3k72Em said:

You are probably mistaken about this part. This is what the separate account is for. The balance should be paid off each month to zero baht, not 20,000.

Through the bank app one can add and see the credit card account details, expenditure and amounts to be paid. Cannot see the fixed deposit security in the app.

 

According to the t&c, there is no requirement to pay off the cc debt back to zero at the end of each month.

 

Each month the statement issued by the bank shows a min amount to repay on a debt if one has used the credit card to pay for anything. One could pay the min amount stated on the credit card statement, there will be an outstanding debt which would incur ridiculous monthly interest charges. Or one could pay off the the debt in full and again have the full 20000 baht credit available.

Edited June 25, 2020 by userabcd

[lelapin]

4 hours ago, userabcd said:

Through the bank app one can add and see the credit card account details, expenditure and amounts to be paid. Cannot see the fixed deposit security in the app.

 

According to the t&c, there is no requirement to pay off the cc debt back to zero at the end of each month.

 

Each month the statement issued by the bank shows a min amount to repay on a debt if one has used the credit card to pay for anything. One could pay the min amount stated on the credit card statement, there will be an outstanding debt which would incur ridiculous monthly interest charges. Or one could pay off the the debt in full and again have the full 20000 baht credit available.

Yes. That's what I do and can access the account on my laptop.

[RangerP703]

23 hours ago, Dinand said:

I am on a work permit and was able to get a credit card without security deposit at SCB.

Yeah Ive got 2 unsecured (Kbank and BKK bank) but the OP's is a secured card so both your post and this one of mine is irrelevant.

[Upnotover]

10 minutes ago, RangerP703 said:

Yeah Ive got 2 unsecured (Kbank and BKK bank) but the OP's is a secured card so both your post and this one of mine is irrelevant.

Not really, as I think the post was answering this question;

 

On 6/24/2020 at 11:08 AM, Mahseer said:

Any Thai banks out there that don't demand a separate deposit?

 

[JRG23]

Completely normal. I have a Bangkok Bank credit card. Limit 100k. This is linked directly with a savings account of that amount. That account cannot go below 100k.

 

It's not really 'credit' but, hey, it works fine.

 

And the banks get to cover their asses, and I have that knowledge that I can't overspend.

 

 

 

[Laza 45]

I don't get it... why use a credit card like this at all?..  I have a Bangkok Bank debit card.. no deposit required.. I top it up as necessary using Transferwise.. No fee from my Australian Credit Union for the transfer.. no fee into BB.. and low fee and good exchange rate from TW.. Is there some advantage to using a credit card like this?  Reminds me of going to a bank years ago to see about a loan to build a house.. they said I could borrow 500,0000 Bt... IF I deposited 500,000 Bt as security !!??

[toolpush]

51 minutes ago, Laza 45 said:

I don't get it... why use a credit card like this at all?..  I have a Bangkok Bank debit card.. no deposit required.. I top it up as necessary using Transferwise.. No fee from my Australian Credit Union for the transfer.. no fee into BB.. and low fee and good exchange rate from TW.. Is there some advantage to using a credit card like this?  Reminds me of going to a bank years ago to see about a loan to build a house.. they said I could borrow 500,0000 Bt... IF I deposited 500,000 Bt as security !!??

Some vendors such as car rental agencies don't accept Debit Cards, only Credit Cards.

[toolpush]

On 6/24/2020 at 6:08 PM, Mahseer said:

Used to have an account and credit card with SCB and their policy was to deposit twice the monthly credit card limit in a separate account as you describe. Bangkok Bank is equal amount as you are now aware.

 

Any Thai banks out there that don't demand a separate deposit?

My Bangkok Bank Mastercard credit card limit is 50K but had to be secured with 100K on deposit. But I have had that setup since before the year 2000

[nickcar]

Yes it seems That all the Thai banks operate like this, and it seems to me if you have to make security deposit Then it can hardly be called a credit card. I have cards from other countries that never suggested using a security deposit, and I have a Thai card from a foreign bank that gives me hundreds of thousands of baht credit without any security  

[NoshowJones]

On 6/24/2020 at 7:29 PM, Dinand said:

I am on a work permit and was able to get a credit card without security deposit at SCB.

I had a work permit while banking with SCB, I applied for a credit card and was told it would be ready in three weeks, I went back in three weeks then was told my application has been turned down.

I closed my account there and then, and just went to Bangkok Bank.

[Peterphuket]

Long ago I canceled my credit card, and use now my debit card, no hassle no deposit, very easy, recommended!

[Pedrogaz]

On 6/24/2020 at 4:59 PM, Upnotover said:

Seems your card has a credit limit of 20,000.  Each month you pay off what you have spent to avoid paying interest and bring the balance back to 0.00.  I don't think you are really maintaining a balance of 20,000 on the card, just paying back what you use (that is how it should work).

 

The 20,000 account is what they told you, security for the credit card.  This is completlely normal.

More like an AMEX card....ie pay it off every month. I have a Kasikorn card, which seems much better....it's called a Wisdom card and I have had it for about 8 or 9 years. It comes with a card which allows you access to the business class lounges at Suvarnabhumi and other Thai airports....not such a benefit at the moment of course. They also give very high credit limits, in case you wish to buy a car or boat or something. 

[Thomas J]

What you really have is a "secured" credit card.  The bank opens a second account and you place money in it that corresponds to the limit on the credit card.  You pay the credit card off when it is used.  If you fail to pay your credit card balance the bank will withdraw the money from the second bank account and pay off your delinquent balance. 

[Max69xl]

On 6/24/2020 at 4:59 PM, Upnotover said:

Seems your card has a credit limit of 20,000.  Each month you pay off what you have spent to avoid paying interest and bring the balance back to 0.00.  I don't think you are really maintaining a balance of 20,000 on the card, just paying back what you use (that is how it should work).

 

The 20,000 account is what they told you, security for the credit card.  This is completlely normal.

Paying back what you use every month is not how it's supposed to work. How will the bank earn any money? They prefer you paying back slow so they can earn money from interest. Maybe OP's branch keeps him on a tight leash for some reason (age maybe?). 

[Max69xl]

4 hours ago, nickcar said:

Yes it seems That all the Thai banks operate like this, and it seems to me if you have to make security deposit Then it can hardly be called a credit card. I have cards from other countries that never suggested using a security deposit, and I have a Thai card from a foreign bank that gives me hundreds of thousands of baht credit without any security  

The deposit used as security is only for foreigners not for Thai nationals.

It's not possible to go after a foreigner if he spends money using his credit card,then just disappears. 

If you have a Fixed Deposit Account, you can at several Thai banks use the money as security when applying for a credit card. That's quite hassle free imo. 

 

[sanuk711]

6 hours ago, toolpush said:

My Bangkok Bank Mastercard credit card limit is 50K but had to be secured with 100K on deposit. But I have had that setup since before the year 2000

I think that you may have to get it updated toolpush...I have had the same 100K many years and have gone to (near) the limit ..90+

 

I have said on a here a few times.....its important when you get VISA/Mcard  to see who it is linked with--what company. You can ask--My Mcard is linked with AirAsia, -------First on the plane, no waiting/don't pay for first 20Kl stored luggage/access to the red seats/ free coffee/ no charges to pay when booking flights with it........ etc   etc      my Visa isn't linked...so they made that one Platinum, which doesn't mean anything as its still the same limit....but looks good, but I just use the AirAsia one.

[isaantom]

I have a secured CC from Krungsri.

The 800k deposit for immigration in a separate account serve as security for a credit limit of up to 720k according to my needs.

The monthly charge is paid from another account.

[bravo19]

On 6/26/2020 at 6:52 AM, Peterphuket said:

Long ago I canceled my credit card, and use now my debit card, no hassle no deposit, very easy, recommended!

But unlike as a credit card your debit card will not accepted everywhere

[Peterphuket]

1 minute ago, bravo19 said:

But unlike as a credit card your debit card will not accepted everywhere

Even with a credit card you'll have the same problems.....

[AgMech Cowboy]

On 6/24/2020 at 7:29 PM, Dinand said:

I am on a work permit and was able to get a credit card without security deposit at SCB.

Yes, they will do that if you have a work permit and guaranteed income.

[AgMech Cowboy]

On 6/24/2020 at 4:45 PM, lelapin said:

Is there a younger more knowledgeable TV reader who can explain to me why the bank requires 2 methods to safeguard themselves with regard to me using 1 credit card.

It's like this. You found a  nice item that you want to buy, which cost Baht 21,000. You paid 1,000 cash and put the rest on you card. At the end of the month, you don't put the baht 20,000 back into the account that you've been topping up monthly. Whalla, they still have baht 20,000 to cover your card 'debt'. Give them the card back and you can have the 20,000. ???? 

[khunpa]

I have a Bangkok Bank Visa and Mastercard creditcards. Both limited and secured with 100K. Its perfectly normal and just gives them security, should you one day run away.

[bravo19]

13 hours ago, Peterphuket said:

Even with a credit card you'll have the same problems.....

Aha, which one? I have had never problems to pay with my thai credit cards, book hotels, bought flight tickets and some more. But with my thai debit card i had some problems, for example some hotels didn’t accept debit cards