Advice On Credit Cards

[eek]

I havent possessed a credit card for about 15 years, so im clueless about hidden costs etc.

I have an option to go with an HSBC credit card (from my UK based account). http://www.hsbc.co.uk/1/2/personal/credit-cards

Or

The foreigner credit card thing they offer at Bangkok Bank (where they hold/freeze x amount of money).

I am really terrible and trying to fathom this stuff out, and the gobbledygook i read up on just has me reeling. Advice on what could be the best option would be appreciated. Thanks so much!

Edit: The purpose of the card would really just be for booking/paying/reserving hotels and flights online. Not for everyday use.

Edited December 5, 2009 by eek

[CWMcMurray]

I would say that unless you are working and making money in Thailand, it would make more sense to get a foreign card. The interest rates are much higher on Thai cards, plus you will not need to lock up any funds to get a foreign card.

I have a Thai card, but the only reason I wanted it was because I work in Thailand, so it is more convenient to pay in THB. It also helps to avoid the international transaction costs that I have to pay on my USD card for any local purchases in Thailand.

I was able to qualify for my card based upon my local salary, but if I had to lock away a bunch of money I probably would not have done it.

[eek]

Thanks CWMcMurray.

Some of my main thoughts though is that maybe there are high hidden charges in the UK based card? Although i dont work in Thailand, i live here. So, the card would be used for things here, not things in the UK. So, thats also why im wondering about what is the best option in that case. very confused!

Edit:Flight bookings etc that i would be making would be for domestic traveling within Thailand through companies such as Air Asia, Nok Air.

Edited December 5, 2009 by eek

[cmsally]

I have both UK & Thai but I don't use that often - not a big fan of credit cards.

Bear in mind that UK banks will I think only mail to a UK address. Check on that one but my bank always mail to acct. address which is UK.

If you are offshore you will probably get option for mailing all the stuff incl. cards to a foreign address

I have a Thai one for any purchases here and also use online. If it should get lost I think it would be far less a hassle to get new one while based here.

In UK I prefer using a debit card. Easy for purchases and to stick in the ATM as soon as you arrive.

[cmsally]

Sorry double post - internet going weird

Edited December 5, 2009 by cmsally

[richieudon]

If you have internet banking a good idea is to look at The Post Office.

I aquired a Post Office credit card which doesn't charge you for transactions abroad.

I use it as much as I can and pay the bill monthly with internet banking.

My kasikorn bank was paying 53 baht to the pound whereas the Post Office gave me 55.

It's cheaper for me to use my credit card than it is to use cash!!

[monty]

I am not sure at the moment, but there used to be a big discussion on the insurance/safety on Thai issued credit cards.

On Western issued cards, fraudulent charges are very easy to get rid of (if genuinely fraudulent of course), but in Thailand it seems to be a major head ache!

[CWMcMurray]

Thanks CWMcMurray.

Some of my main thoughts though is that maybe there are high hidden charges in the UK based card? Although i dont work in Thailand, i live here. So, the card would be used for things here, not things in the UK. So, thats also why im wondering about what is the best option in that case. very confused!

Edit:Flight bookings etc that i would be making would be for domestic traveling within Thailand through companies such as Air Asia, Nok Air.

If you will be using fairly opten for purchases that will be paid off in full and you have access to THB funds, then I would go with a Thai card.

I can notspeak for UK, but with my US card I have an "International transaction fee" - I can't remember but I think it is about 3% of total amount. So for small purchases it makes more sense for me to use my Thai card and just pay off and the end of the month.

If I were planning to make a larger purchase that would take a while to pay off, I would use my US card because the interest rate is much lower (US card 12% and Thai card 20%).

I did the math once and found that for anything that would take me more than 4 months to pay off, it would be better for me to use my US card. Anything less than 4 months, better to use my Thai card...

To find out which make sense for you, you may need to input: transaction fees, interest rates, as well as transfer costs of payments. You would then be able to come with the best option.

For me, I like having both... I then use which ever one makes more sense.

Edited December 7, 2009 by CWMcMurray

[eek]

Thank you all. Its still a bit of a headache for me, but i think ill just go for both options then work out which one is best for which occasion. With the UK card i can get guardcard protection on it. I guess i wont give me any cover on the Thai card. But, for the Thai card I will just make it have a low limit.

[khunjake]

Why not just use a VISA/Mastercard Debit Card? I rarely use credit cards anymore to book hotels or airfare anymore as they all accept debit cards now. As long as your name and CVV is printed on the card, it will work exactly like a credit card.

[eek]

That method used to work for me khunjake, still does with some things, but trying to book AirAsia and Nokair online with my HSBC card or BB Bank card both resulted in declines. This is also the reason why i didnt want nor need a cc for such a long time. But, i realise now that they are actually necessary for some things, as well as important back up.

[khunjake]

Yes, I do understand that some airlines just outright decline certain banks. I use the Kasikorn Visa Debit WebCard for bookings on AirAsia and the transaction goes through every time with no declines. Not sure about Nok Air but I'm sure the WebCard would work fine there as well. I still carry a credit card as a backup but I prefer to use debit as the foreign exchange transaction fees will show up right away since it is a cash transaction. Where as on a credit card, then banks like to wait for as long as possible to post the FX fee, sometimes up to 2 months I have seen from a certain Int'l bank. (to hit you for the worst possible exchange rate I'm sure.)

[KCM]

If you get a Capital One credit card they don't charge the foreign transaction fee that almost all other card issuers charge.

[raro]

I would not lock up x amount of money (i.e. the amount that you would get as credit in return) as it technically becomes a Debit and not a Credit card. Moreover, you get zero interest on the locked-up money.

Rather get a Debit card with CCV code that can be used on the internet similar to a Credit Card and you should be fine.

[sinnus99]

I have US, EU and Thai credit cards, debit cards, savings accounts and paypal credit account. I always use the one, which use the same currency as my transaction currency, so never get foreign transaction fees. While US banks are lowering credit limits, my Thai banks raising it. I used to have gold Kasikorn credit card and last week I received a platinum card in the mail with higher 150,000 thb credit limit. None of my cards have annual fees (sometimes you need to call in to request waiving the annual fee) and I usually pay off the balance each month. I also have Kasikorn savings account and do online banking quite often, to pay bills and credit cards balances. I also have Bangkok Bank and SCB accounts.

Kasikorn bank have a free safety service, where you get an sms message everytime your credit card is used over 1,000baht. This way if you get an sms and you did not use the card, you can immediately contact the bank. Actually I have read not long ago, that soon Thai credit cards will have same protection as US cards, if your card is lost or stolen and you report it within 3 days, you are not liable for transactions made during that period.

When I rent a car, purchase airplane tickets online (no 3%fee) or train tickets (no 3% fee) or use Thai ticketmajor it is great to have a Thai credit card. I try to pay all larger expenses with credit card and then pay it off end of the month. I get points after every purchase, which I can use to purchase free airline tickets or gift items from a catalogue. When you use Thai credit cards to buy furniture or electronic goods in Thailand you always get 0% interest financing between 6 months to 3 years and pay small monthly installments. Often have extra promotions and further discounts for credit card holders when shoppng in malls. You can use automatic bill payment and get more discounts when paying UBC monthly bills or internet monthly fees. Seems that often in Thailand you get better prices and added value when you use thai credit cards vs cash. If you don't pay off your monthly balances, most Thai credit card issuing bank will charge you 20% yearly interest rates.

I have work permit and I recommend everyone who is working in Thailand legally to get a Thai credit card. You can get Thai credit cards without safety deposit or co-signer, if you have worked for at least 6 months and your salary is at least 50,000baht/month for Kasikorn or 100,000baht/month for SCB. Usually the initial credit limit will be twice as much as your monthly salary. Once you have one Thai credit card for 6 months, is much easier to get approved for another credit card with other banks.(given you are not maxed out). You can also request additional cards for wife, misses with different credit limit and request to get notification for every purchase . Then you know, where they are and what they are spending on your credit card. LOL.

Edited December 13, 2009 by sinnus99