Denied New Home Loan

[ChiangMaiThai]

I'll try to keep this short and quick as possible.

My Thai wife has a documented total monthy income of over 100,000 Baht (going back at least 2 years).

She has paid a 690,000 Baht deposit on a 4,600,000 Baht house.

In August of last year we took a 3 week holiday to the US. During that time she missed her 8,000 Baht payment towards a Thanachart Bank auto loan. She never realized that she missed this payment. The following month she recieved a bill for 8,000 Baht and paid it. She did the same thing for each of the next 5 months.

She has applied for the home loan from Bangkok Bank who has told her that normally everything would be fine, but she has 6 consecutive late payments of more than 30 days each on her auto loan. It looks like they will not approve the loan because of this.

It appears that Thanachart Bank never notified her of the late payment situation and never sent her a bill for both the prior month and current month's payment. So while she thought that she was paying the current month's bill, she has actually been paying the previous month's bill. If they had simply sent a bill for the prior month's late payment and the current month, she would have had one late payment when she was outside of the country and that would have been the end of it.

So now she is in a situation where she is looking at possibly forfeiting a 690,000 Baht deposit and another 300,000 Baht spent at Home Pro to pre-order a kitchen - all because of a simple misunderstanding over an 8,000 Baht a month payment.

I'm hoping that someone may be able to point me in the right direction. It seems that Bangkok Bank is extremely strict to deny her the loan based on these late payments - especially considering that she always has significant money in the bank and a steady income.

Are there any other banks that will be more understanding? If not, is there any way to encourage Thanachart Bank to remove the negative marks on her credit report?

Or has she just lost a million Baht?!?

Thanks for any input!

[ShopBoy]

I would advise try other bank.

With the documented total monthly income of over 100,000 Baht as you mention should EASILY qualify for the loan amount that she is asking without any further loans with banks other than the car.

Why would they forfeit your deposit if could not qualify for a loan ?

[ChiangMaiThai]

I would advise try other bank.

With the documented total monthly income of over 100,000 Baht as you mention should EASILY qualify for the loan amount that she is asking without any further loans with banks other than the car.

Why would they forfeit your deposit if could not qualify for a loan ?

Thanks for the reply. The home loan application was actually with Bangkok Bank. They saw the late payments made on the car to Thanachart Bank.

The depsoit is paid directly to the Moo Bahn. Once it's paid, they start building. Once they finish, if you can't come up with the money, they keep your deposit and say 'thank you very much!'

[ShopBoy]

I would say thats a bad move paying the deposit first without getting a loan approval from the Bank.

Keep on trying with a few more banks and meet up with the loan officer if you can to explain the late payment on the car from what i can see the late payment is not a big issue.

Did Bangkok Bank specifically tell you that they reject your application base on the late payment ?

As i mention earlier your documented income is very substantial enough to support the loan amount.

[Swiss1960]

I would advise try other bank.

With the documented total monthly income of over 100,000 Baht as you mention should EASILY qualify for the loan amount that she is asking without any further loans with banks other than the car.

Why would they forfeit your deposit if could not qualify for a loan ?

Thanks for the reply. The home loan application was actually with Bangkok Bank. They saw the late payments made on the car to Thanachart Bank.

The depsoit is paid directly to the Moo Bahn. Once it's paid, they start building. Once they finish, if you can't come up with the money, they keep your deposit and say 'thank you very much!'

I think the only sensible option is to go to Thanachart Bank, pay the outstanding car loan and any interest accrued and ask them very nicely to fix your wife's credit record...

Then go back to BKK bank and explain to a manager what happend and show him that your wife fixed the problem, that might help.

Going to another bank... well, you should assume that they have the same credit history information as BKK bank and might therefore also be wary to offer the loan... so be straight forward and tell the responsible manager about the problem before they find out themselves...

[ShopBoy]

There is some forum members here who works for Bangkok Bank. Perhaps try to contact them and see if they could offer any help.

I can't remember their handles some members here could help ChiangMaiThai point them ?

[ChiangMaiThai]

I would say thats a bad move paying the deposit first without getting a loan approval from the Bank.

Keep on trying with a few more banks and meet up with the loan officer if you can to explain the late payment on the car from what i can see the late payment is not a big issue.

Did Bangkok Bank specifically tell you that they reject your application base on the late payment ?

As i mention earlier your documented income is very substantial enough to support the loan amount.

The bank will not approve a loan on a house that isn't built. We did give them all her documents before paying the deposit and were told that she would be approved no problem - that was before the issue with the car payments.

Yes, they said that the application is stuck because of the late car payments. If anyone from BKK Bank can help, that would be great! And if anyone from Thanachart Bank can explain why they don't send a bill for current and last month's payment (in the case that the latter wasn't paid) that would be much appreciated. This whole headache could have been avoided if Thanachat Bank simply sent a bill for 16,000 Baht in September, 2011.

Edited March 7, 2012 by ChiangMaiThai

[Sophon]

There is some forum members here who works for Bangkok Bank. Perhaps try to contact them and see if they could offer any help.

I can't remember their handles some members here could help ChiangMaiThai point them ?

Daveroc and ianguygil

Sophon

[Soutpeel]

As i mention earlier your documented income is very substantial enough to support the loan amount.

The amount of money one earns is not only criteria applied when assessing approving a loan, you could be earning THB 1.0 million/month, but if you are not paying your current loans or paying late...this with do more damage to your credit status, than someone who earns a lot less, but keeps up with their payments...so in some respects the income is irrelevant in this case

Edited March 7, 2012 by Soutpeel

[SoloFlyer]

In Chiang Mai? Which branch? Our bank (bkk bank) is trying to throw money at us for an unbuilt house. Rediculously easy to get the loan. Try speaking to the manager - or I could point you in the direction of mine, if you like?

Edited March 7, 2012 by SoloFlyer

[kurnell]

UOB will give a home loan to anyone and you can negotiate the interest rate after 3 years.

[sinnus99]

Stay away from Bangkok bank. They are not consistent what they require for loans and what they are denying for. They don't want to give loans or credit, unless they have secured their loans. But then they issue a credit card for someone with 15,000baht monthly salary. Go figure.

I'm married to a Thai, she has her own business, I have work permit for the last 5 years and salary over 1 million baht per year yet Bangkok Bank denied my credit card application. They have offered me secured credit card in lieu to deposit my money for 1% interest p.a. to cover the 'credit' card limit with 20% interest.I even get my salary direct deposited from my employer to BKK bank and have account with them the last 4 yrs.

I easily qualified for unsecured platinum Thai credit cards with Kasikorn Bank, HSBC and Citibank. I never paid late and have Thai credit card the last 3-4 yrs. So now I take all my business to other banks which trust in me and keep 200 baht in my Bangkok bank account for between direct deposits.

Edited March 7, 2012 by sinnus99

[saengsureeya]

A bit weird.......the bank noticed 8 late payments, which IMHO should add up to THB 64,000.

Any medium educated bank employee could figure out that there was only 1 late payment.

They probably just gave you an obvious reason; if you solve this problem either with Thanachart or Bangkok Bank, they will have another reason.

Try another bank.

On the other hand.........the invoices regarding your car loan all have due dates on them........never noticed?

[ChiangMaiThai]

Thanks for all the comments. I will tell her to try some other banks including UOB.

Soloflyer, I'm not sure which branch off hand, but they told us that everything is sent to Bangkok and decided by someone there anyway.

Soutpeel, you are right, but you would also think that a logical person working at the bank would see that this is a good lending opportunity. She banks with BKK Bank so they can see that she has always had enough to make the monthly payment. They can also see 100,000 Baht a month coming through and savings of 700,000 Baht or so. It seems crazy to decline such a person over late payments on an 8,000 Baht a month loan.

Anyway, I will update everyone with the ultimate outcome. Have to say that so far I am pretty disappointed with both banks in this situation - BKK Bank for not looking at the big picture and Thanachart Bank for failing to simply send a bill for two months' worth of payments.

Thanks again.

[fletchsmile]

There are quite a few points here. From the bank's perspective your wife has demonstrated that she is not very organised with her management of debts. She would have signed an agreement up front that shows when payments should be made. She missed them. In addition she didn't realise she missed them. It's not impressive that she never took an interest when debts are payable. One of the first questions you should ask in taking out debt is when you have to pay it back.

She then wasn't able to work out that when she missed a payment she'd have to pay that one plus another one next time. Just because she missed one payment, doesn't entitle her to just put the schedule back a month. If she's read her loan she'd have known that for late payments which order are paid off first. Hence she wasn't late once but several times. In terms of payment this would look exactly the same as someone who can't pay as they don't have the money or decided not to pay. All the credit history shows is late payments. So while she may try and put the blame on the bank, the initial fault is hers not the banks.

She should probably also have elected to pay by direct debit, and this would be a good idea for your mortgage too given that she's demonstrated a history of not prioritising the payments or forgetting. The best debtors don't forget to pay. Missing a payment for whatever reason increases the credit risk for a bank.

Why do I mention the above? You will get further by admitting your own mistakes and taking responsibility rather than trying to blame the bank, particularly in a face driven country like Thailand.

What to do about it? Firstly any bank considering extending a loan will pull the same data from the central National Credit Bureau during their credit checks. It will show on her record for some time. She firstly needs to bring it up to date, and secondly it's not a bad idea to pay it off early to help demonstrate it was an oversight and not a lack of funds.

As mentioned any bank will need to do a credit check, and missed payments are a large negative regardless of reasons. Statistically someone who always pays on time is better than someone who doesn't pay regardless of reason. Banks use models and scorecards. Retail loans being smaller are approved with a greater rating on statistics as it's more cost effective, and not worth the bank approving small loans in the mass market case by case. On mass market retail loans banks like simple borrowers who tick the boxes for their requirements. Looking into exceptions takes more time.

For many banks her actions will mean an automatic rejection. What she needs to bear in mind is that the bank can make an exception, and she needs to get an exceotion at many banks. Banks are often limited to how many exceptions they can make to their model generated result on how should/ shouldn't get approved. So she needs to ask to speak to the manager of the average person dealing with the loan. Lower level staff rarely have discretion to give exceptions to credit policy decisions. i.e go higher up the chain to someone who can make a decision exception. In addition she should take along evidence to support her case, eg other bank statements showing she had the funds but made an oversight, copies of the documents showing the debt is now cleared or performing as normal, get a copy of her own credit history statement and or at least give the info at the start rather than wait for the bank to find it. Not a bad idea either to offer an additional guarantee on the mortgage loan, eg her husband as a foreigner can guarantee the loan.

Lastly some banks do have lower credit standard than others. However, be prepared to demonstrate the stuff above, and to pay by direct debit so you don't mess up again.

[ChiangMaiThai]

There are quite a few points here. From the bank's perspective your wife has demonstrated that she is not very organised with her management of debts. She would have signed an agreement up front that shows when payments should be made. She missed them. In addition she didn't realise she missed them. It's not impressive that she never took an interest when debts are payable. One of the first questions you should ask in taking out debt is when you have to pay it back.

She then wasn't able to work out that when she missed a payment she'd have to pay that one plus another one next time. Just because she missed one payment, doesn't entitle her to just put the schedule back a month. If she's read her loan she'd have known that for late payments which order are paid off first. Hence she wasn't late once but several times. In terms of payment this would look exactly the same as someone who can't pay as they don't have the money or decided not to pay. All the credit history shows is late payments. So while she may try and put the blame on the bank, the initial fault is hers not the banks.

She should probably also have elected to pay by direct debit, and this would be a good idea for your mortgage too given that she's demonstrated a history of not prioritising the payments or forgetting. The best debtors don't forget to pay. Missing a payment for whatever reason increases the credit risk for a bank.

Why do I mention the above? You will get further by admitting your own mistakes and taking responsibility rather than trying to blame the bank, particularly in a face driven country like Thailand.

What to do about it? Firstly any bank considering extending a loan will pull the same data from the central National Credit Bureau during their credit checks. It will show on her record for some time. She firstly needs to bring it up to date, and secondly it's not a bad idea to pay it off early to help demonstrate it was an oversight and not a lack of funds.

As mentioned any bank will need to do a credit check, and missed payments are a large negative regardless of reasons. Statistically someone who always pays on time is better than someone who doesn't pay regardless of reason. Banks use models and scorecards. Retail loans being smaller are approved with a greater rating on statistics as it's more cost effective, and not worth the bank approving small loans in the mass market case by case. On mass market retail loans banks like simple borrowers who tick the boxes for their requirements. Looking into exceptions takes more time.

For many banks her actions will mean an automatic rejection. What she needs to bear in mind is that the bank can make an exception, and she needs to get an exceotion at many banks. Banks are often limited to how many exceptions they can make to their model generated result on how should/ shouldn't get approved. So she needs to ask to speak to the manager of the average person dealing with the loan. Lower level staff rarely have discretion to give exceptions to credit policy decisions. i.e go higher up the chain to someone who can make a decision exception. In addition she should take along evidence to support her case, eg other bank statements showing she had the funds but made an oversight, copies of the documents showing the debt is now cleared or performing as normal, get a copy of her own credit history statement and or at least give the info at the start rather than wait for the bank to find it. Not a bad idea either to offer an additional guarantee on the mortgage loan, eg her husband as a foreigner can guarantee the loan.

Lastly some banks do have lower credit standard than others. However, be prepared to demonstrate the stuff above, and to pay by direct debit so you don't mess up again.

Thanks for this. I will tell her to put the documentation together as you advise. It's completely depressing that her oversight on an 8,000 Baht a month car payment - which was always paid, albeit a month behind schedule, may now prevent her from buying a house - and may actually cost her a million Baht that has already been invested. Even considering the fact that the car payments were late, it seems severely strict for any bank to overlook the 100,000 Baht a month income and simply reject her outright. In the US, your credit score would be hurt by the late payments so the terms of your loan wouldn't be as good, but they would still lend the money...

[CDB]

Based on my experience of buying multiple properties here and getting loans from BangkokBank, Standard Chartered bank and many others, I can note as follows:

• I have never seen a contract where your 15-20% deposit is simply forfeit. Instead they usually gave some time to complete transactions followed by penalty interest on the overdue amount (typically 10%). Check your contract, but it is unusal that there is any instant forfeiture.
  
• In the worst case you can simply sell the house at the cost price and get your money back. Usually your property will increase in value while it is being built, and was probably discounted because you bought off plan rather than on completion. As such, if you offer to onsell your right to buy at lower than what the selling price would be close to completion date, you'll get your money back.
  
• Continuing the above, it's common for Thais to buy before securing finance and often they buy with no hope of getting finance -- purely to flip
  
• Despite having a perfect history with Bangkok Bank for 10 years, when I bought a second condo they declined my loan. Reason.. because I often did not answer my phone when they called me to notify that I had overdrawn my account, My explanation of being out of the country in a different time zone was not accepted. My reminder that I told them to use email was not accepted. Standard Chartered and other banks just laughed and gave me the load right away. It's well known that BangkokBank is much stricter than other banks, They decline more loan applications than other banks. Just try another bank and you should be fine.
  
• Or ask the Bangkok Bank guys on TV here
  

[ChiangMaiThai]

Based on my experience of buying multiple properties here and getting loans from BangkokBank, Standard Chartered bank and many others, I can note as follows:

• I have never seen a contract where your 15-20% deposit is simply forfeit. Instead they usually gave some time to complete transactions followed by penalty interest on the overdue amount (typically 10%). Check your contract, but it is unusal that there is any instant forfeiture.
  
• In the worst case you can simply sell the house at the cost price and get your money back. Usually your property will increase in value while it is being built, and was probably discounted because you bought off plan rather than on completion. As such, if you offer to onsell your right to buy at lower than what the selling price would be close to completion date, you'll get your money back.
  
• Continuing the above, it's common for Thais to buy before securing finance and often they buy with no hope of getting finance -- purely to flip
  
• Despite having a perfect history with Bangkok Bank for 10 years, when I bought a second condo they declined my loan. Reason.. because I often did not answer my phone when they called me to notify that I had overdrawn my account, My explanation of being out of the country in a different time zone was not accepted. My reminder that I told them to use email was not accepted. Standard Chartered and other banks just laughed and gave me the load right away. It's well known that BangkokBank is much stricter than other banks, They decline more loan applications than other banks. Just try another bank and you should be fine.
  
• Or ask the Bangkok Bank guys on TV here
  

Hi CDB. Some great info here. Thanks!

1.

I had to dig up the old contract and the verdict is that it is actually not that clear. Here is what is says:

".......If there is any delay in the procedure caused by the Buyer or by the financial institution which prevents the Buyer from making payments in accordance with the dates set in this contract or if the financial institution can not grant the loan to the Buyer because the Buyer does not qualify for financing, the Buyer can not use this as a reason for failing to make the final installment payment of 85% of the land and house price...."

And that's all it says. I was always under the impression that the deposit would be forfeited. If they apply interest to the overdue amount, for how many months do they typically allow that before they finally push for some final resolution?

2.

Probably a stupid question since I understand the concept of buying and flipping to make a quick profit but don't get the details. How does reselling work if the house still belongs to the Moo Bahn? For example the original price was 4.6 million. A 690,000 Baht down payment has been paid. By the time the house is complete, a 400,000 Baht kitchen will have also been installed. So that's 5 million into it. How does my wife turn around and sell the house for 5 million or more if it still belongs to the Moo Bahn? Does she just tell the Moo Bahn that Mr. and Mrs. Smith will be buying the house instead of her? And then if the asking price was 5.5 million, where do Mr. and Mrs. Smith pay their money to since the Moo Bahn only needs 3,910,000 Baht?

3.

That's amazing that they denied you based on the fact that you were traveling overseas! Even if BKK Bank has a reputation for being strict, in your experience will another bank like Standard Chartered be willing to overlook 6 recent late payments (each of more than 30 days) on an 8,000 Baht car loan if my wife can make an argument that she had plenty of money, but was just being careless? If not, generally for how long must one have a clean credit report in Thailand before the bank will overlook such indiscretions?

4.

I have messaged one of the TV users mentioned in the thread who works at BKK Bank, but no reply as of yet. Hopefully they can suggest something. As a bank I can understand the point of view that 'our stats tell us that someone who has paid late 6 times in a row is not a good credit risk'. But as a reasonable person I can see that that she had plenty of money in her account during the time that they payments were being missed, that she made all her other bill payments on time, that she has an income that will allow her to easily make the mortgage payment, and that she has sufficient savings. I do hope I can find a reasonable person out there at one of the banks!

Finally, I have been here quite some time. For the last four years I have had a work permit and steady employment. Would an offer for me to cosign the loan help at all or is that useless because I am 'just a farang'? (It really gets me that with my same income in the US I could easily buy this house myself, but over here I am somewhat of a second class citizen. Oh well, I still prefer life over here.

Thanks again!

Edited March 7, 2012 by ChiangMaiThai

[aussiebebe]

Hi, I don't know where you are based, but a local law firm can answer all your legal questions (1, 2 &3) about the contract, selling and credit. Most small companies don't charge much; 20k+ to oversee the purchase of a house.

Q4. Contact Bangkok Bank's head office. Q5, yes, many banks will accept you as guarantor to your wife for a loan on a house in her name.

I found it interesting in your story how your wife paid late for 6 months and wasn't contacted or penalised in any way; I always assumed there would be some penalty.

[ShopBoy]

As i mention earlier your documented income is very substantial enough to support the loan amount.

The amount of money one earns is not only criteria applied when assessing approving a loan, you could be earning THB 1.0 million/month, but if you are not paying your current loans or paying late...this with do more damage to your credit status, than someone who earns a lot less, but keeps up with their payments...so in some respects the income is irrelevant in this case

Of course he amount of money one earns is not only criteria applied when assessing approving a loan. What was i trying to imply ChiangMaiThai was that the late payment of 8000 Baht should not be an big issue for him getting the loan.

Credit bureau have the same working principle all over the world but Thai Banking system tends to have a more lenient approach towards lending criteria to each individual.

IMOHO his is late payment of 8000 Baht should not be a big hurdle of him getting a loan base on what i understand on Thai Baking loan system and with his well documented income as he describe it looks like a good business to any banks here.

[ignis]

Thanachart Bank auto loan........... All sound a bit odd, with our 3 rd Auto loan it has always been the same, if not paid 2 days after payment date someone calls, after 7 days comes a letter, also there is a late payment fee + a letter fee,,,,,,,,,,,

What I do find silly you have a payment card so just need that when paying, why when the card is swiped it cannot say the amount in total is beyond me.. easy the day you are making the payment phone them they give you the total balance + the amount you need to pay this payment...

Credit score if all paid correct reads '0' late will read '1' etc [if late payment interest was not paid could well read '6']......... Big surprise when going for the second loan, we went to Thanachart Bank it appears that a late payment fee of 320 baht was outstanding, this had be carried forward every month for almost 2 years..... Thanachart Bank said if was all automatic, but cancelled the late payment info, and gave a new loan...

Sorry if not explained very well but on the credit score sheet, it would show as a 8,000 monthly payment on a XX amount Auto Loan, and then all the months of late payment, NOT by how much,,,,,,,, so could read you are 6 months behind, when it is a few baht of late interest that is so many months behind...

Something different re the floods, most of the places said no need to pay the bills for 3 months, good could not get to most Offices, but after the full payment was needed, bit of a shock for lots, could not work of earn money, could not even stay at home........ I went as normal to pay the electric bill at the Post Office fine, the next month on the bill was a little red 1. same on water bill = overdue can only pay at office...... water bill was 19 baht OVERDUE, electric was also small but no bill had arrived [No post for 9 weeks, out of house for 5 weeks as flooded] so it is very easy here to make a small error.

Edit: as above try UOB, found them very good.

Edited March 8, 2012 by ignis

[Crossy]

Has she paid the Missing instalment?

If not she is still racking up late payment black marks which will make it even more difficult to obtain credit.

One late payment is unlikely to be an issue, but she has six and rising if she's not caught up.

We were a couple of days late with an auto-loan payment. The loan people called Wifey to remind her, we immediately paid along with the 100 Baht late-payment fine and nothing more was said, nothing has appeared on her credit report.

As others have noted, first port of call is the auto loan bank, pay the missing instalment and explain the absence of the reminder letter. With luck you could get your problem reduced to one late payment on record.

[ChiangMaiThai]

Has she paid the Missing instalment?

If not she is still racking up late payment black marks which will make it even more difficult to obtain credit.

One late payment is unlikely to be an issue, but she has six and rising if she's not caught up.

We were a couple of days late with an auto-loan payment. The loan people called Wifey to remind her, we immediately paid along with the 100 Baht late-payment fine and nothing more was said, nothing has appeared on her credit report.

As others have noted, first port of call is the auto loan bank, pay the missing instalment and explain the absence of the reminder letter. With luck you could get your problem reduced to one late payment on record.

Thanks for this. It is all caught up now. Today they said that they cannot remove anything from her credit report because it is all true. Fair enough, but at the same time it is also true that they didn't make any effort (that I am aware of) to let her know that she was behind every month. Like ignis said, usually they really go out of there way to make sure you know that you are late. They said they would provide her with a letter saying it was all caught up now, but that is it. So not sure what to expect going forward.

Anyway, thanks everyone for the replies. I will post updates here as I get them. Moral of the story though - make sure you are paying your bills on time if you plan on applying for a loan!

[aridion]

UOB will give a home loan to anyone and you can negotiate the interest rate after 3 years.

Even to a foreigner without a thai spouse?

[aridion]

UOB will give a home loan to anyone and you can negotiate the interest rate after 3 years.

Even to a foreigner without a thai spouse?

I checked on the UOB site. To obtain a homeloan one needs at least a yearly income of 100,000 sing dollars. That is about 50,000 sterling. Not too good for a 'younger' guy or someone who doesn't have that income right now. Bah Humbug...

[kurnell]

UOB will give a home loan to anyone and you can negotiate the interest rate after 3 years.

Even to a foreigner without a thai spouse?

I checked on the UOB site. To obtain a homeloan one needs at least a yearly income of 100,000 sing dollars. That is about 50,000 sterling. Not too good for a 'younger' guy or someone who doesn't have that income right now. Bah Humbug...

My missuz got a home loan yes

[aridion]

Maybe, better to contact them then? I got that info. from their web site.

Unless your missus is on more than 50k sterling.

[ShopBoy]

did you manage to get a new loan ?

[Huayrat]

There are quite a few points here. From the bank's perspective your wife has demonstrated that she is not very organised with her management of debts. She would have signed an agreement up front that shows when payments should be made. She missed them. In addition she didn't realise she missed them. It's not impressive that she never took an interest when debts are payable. One of the first questions you should ask in taking out debt is when you have to pay it back.

She then wasn't able to work out that when she missed a payment she'd have to pay that one plus another one next time. Just because she missed one payment, doesn't entitle her to just put the schedule back a month. If she's read her loan she'd have known that for late payments which order are paid off first. Hence she wasn't late once but several times. In terms of payment this would look exactly the same as someone who can't pay as they don't have the money or decided not to pay. All the credit history shows is late payments. So while she may try and put the blame on the bank, the initial fault is hers not the banks.

She should probably also have elected to pay by direct debit, and this would be a good idea for your mortgage too given that she's demonstrated a history of not prioritising the payments or forgetting. The best debtors don't forget to pay. Missing a payment for whatever reason increases the credit risk for a bank.

Why do I mention the above? You will get further by admitting your own mistakes and taking responsibility rather than trying to blame the bank, particularly in a face driven country like Thailand.

What to do about it? Firstly any bank considering extending a loan will pull the same data from the central National Credit Bureau during their credit checks. It will show on her record for some time. She firstly needs to bring it up to date, and secondly it's not a bad idea to pay it off early to help demonstrate it was an oversight and not a lack of funds.

As mentioned any bank will need to do a credit check, and missed payments are a large negative regardless of reasons. Statistically someone who always pays on time is better than someone who doesn't pay regardless of reason. Banks use models and scorecards. Retail loans being smaller are approved with a greater rating on statistics as it's more cost effective, and not worth the bank approving small loans in the mass market case by case. On mass market retail loans banks like simple borrowers who tick the boxes for their requirements. Looking into exceptions takes more time.

For many banks her actions will mean an automatic rejection. What she needs to bear in mind is that the bank can make an exception, and she needs to get an exceotion at many banks. Banks are often limited to how many exceptions they can make to their model generated result on how should/ shouldn't get approved. So she needs to ask to speak to the manager of the average person dealing with the loan. Lower level staff rarely have discretion to give exceptions to credit policy decisions. i.e go higher up the chain to someone who can make a decision exception. In addition she should take along evidence to support her case, eg other bank statements showing she had the funds but made an oversight, copies of the documents showing the debt is now cleared or performing as normal, get a copy of her own credit history statement and or at least give the info at the start rather than wait for the bank to find it. Not a bad idea either to offer an additional guarantee on the mortgage loan, eg her husband as a foreigner can guarantee the loan.

Lastly some banks do have lower credit standard than others. However, be prepared to demonstrate the stuff above, and to pay by direct debit so you don't mess up again.

I agree.. my wife also has a car loan with the same bank as your wife and she knows it has to be paid on the 10th of everymonth... My wife also has a bangkok bank account with 80k baht deposited everymonth and they declined her a credit card which i find very strange so we are changing to the kasikorn bank... goodluck and i hope you secure another loan so your wife doesnt lose her money