Thai Credit Score system

[Na Fan]

Hello

 

We've been trying (unsuccessfully) to get a mortgage. Based on my understanding it's because the wife has a bad credit score. Apparently that's a thing in Thailand.

 

It seems difficult to find good reliable information about this. I've checked with our accountant too, who wasn't even familiar with the term.

 

Can anyone shed some light on this? Can we publicly (free or not, but reliable) check it somewhere?

 

What can we do to repair it? We have no debts. But also no running credits or cards are in wife's name. She's Thai.

 

Is it helpful to just keep buying things on credit? Instead of paying 10k cash for a new coffee machine, do it in one of those 0% installment arrangements. Will this count? Will this repair the credit score?

 

Taking out a new credit card, putting small-ish things on it (phone bills, etc) and paying it in full at the end of the month? Does that help? We don't have much, car insurance and phone bill is about the extent of what is in wife's name.

 

What else could we use? I wouldn't even mind paying a few hundred Baht a month for a service or something we don't even need, but if that helps to repair the credit score so we can get a mortgage in a few years, then that'll be worth the cost.

 

Any other useful tips?

 

Thanks in advance.

[digbeth]

what kind of accountant don't even know what credit score is? even motorcycle or mobile phone shops knows how to run credit score before any lease or hire purchase, their keyword is 'Credit Bureau' maybe pronounced in Thai accent and you'll get there

 

in most banking app there are option to request credit score for a fee, or you can visit KTB bank (they're government bank) or the credit bureau in Bangkok has a few physical location you can walk up to get your credit score

 

Typical path for Thais with no previous credit history is starting on cash advance cards, some cards can be used to buy things on credit, maybe 0% for 10 months, easy and cheap way to build history

 

She's unlikely to be granted a credit card in her own name,

If you have a lump sum you can help her with, have her open a bonded credit card, say 100,000 baht in an account the bank will use as collateral to give her a credit, any credit accrued won't be taken out off this amount automatically like a debit card be she has to pay either the whole amount or the minimum plus interest just like real credit card, this will show on her credit report, and if she keeps up the repayment and don't have overdues bigger loans can be granted 

 

Also don't run her credit report too often, this will show up as 'tracing' and is red flag looking like someone trying to game the system or shopping around for loans, 

[digbeth]

first get the credit report, see if the cause of rejection was if she has no credit history or had a bad loan she defaulted on in the past, 

[BritManToo]

She needs to have a job, 25kbht/month will get you a 1M5bht mortgage.

No credit history required, just 6 months wage slips.

No job = no mortgage.

 

My misses owed 500kbht, taken to court, not allowed to own anything for 5 years then debt written off. 2 weeks after the debt was written off she got a 1M5bht mortgage using forged pay slips (no job) ......... so I don't think credit history is even considered in Thailand.

 

Be aware,

She may be deliberately sabotaging the mortgage application in the hope you'll be daft enough to pay cash. Mine certainly tried that until she realised no mortgage = no house purchase.

Edited September 5, 2023 by BritManToo

[Na Fan]

Thanks @digbeth - good information there.

 

@BritManToo What is 1M5bht ? 1.5M ?

 

I can't see what you could possibly do with a 1 million baht mortgage. Almost all proper houses are in the 4-5 mil range.

 

Thanks for the tip, but no sabotaging going on here.

 

[BritManToo]

50 minutes ago, Na Fan said:

Thanks @digbeth - good information there.

 

@BritManToo What is 1M5bht ? 1.5M ?

 

I can't see what you could possibly do with a 1 million baht mortgage. Almost all proper houses are in the 4-5 mil range.

 

Thanks for the tip, but no sabotaging going on here.

 

Plenty of 2M or less houses around Chiang Mai.

My new 3 bed house cost 1M8bht a few years back (now at 2M2bht).

Edited September 5, 2023 by BritManToo

[Na Fan]

4 minutes ago, BritManToo said:

Plenty of 2M or less houses around Chiang Mai.

My new 3 bed house cost 1M8bht a few years back (now at 2M2bht).

including the land it's sitting on ? That's very cheap, if so.

 

We're in Chonburi - prices are very different here.