Secured credit card. Releasing deposit after gained credibility?

[scandinavi]

It seems to be relavitely easy to get secured credit card by using long term deposit as guarantee. Do Thai banks insist to keep the deposit for ever or is it possible to release the deposit after getting good credibility report?

Or can I get credit card from another bank after getting the local credibility report?

At the moment I dont have work permit and no long term visa either. I have had about four million baht in Kasikorn bank for three years.

[Spoonman]

deposit will be released when "credit" card is cancelled.

[Pib]

And actually I think it X-days (i.e., around 30 days) after the card is cancelled before the deposit is released in case any late arriving charges show-up since some merchants are slow in "finalizing/settling" the charge transaction after the initial charge...or a merchant had to resubmit the charge for some reason. I once bought a pair of prescription glasses for the wife here in Bangkok and although I got immediate notice of the initial charge the settlement/posting transaction took almost 3 weeks...one of the few times that has happened but it does happen.

[MMarlow]

The only way you can get a credit history is by using credit, and deposits for secured cards will be retained for the duration of the card. How can you get a good credit report just by holding a secured credit card? While you have a secured card you are never using credit, you are simply utilising the collateral of your own money to facilitate convenient spending.

If you could get a credit rating after being issued a secured card, of course everybody using these cards would have a perfect rating as they've already blocked their money to the card issuer to back all their purchases and could never default, that is why these cards are issued.

[vaultdweller0013]

There will be minimum income requirements in order to qualify for a non-secured credit card in Thailand. In my experience, the income has to be from a Thai source; it cannot be foreign income. The fixed deposits are accepted as a replacement for the income requirement. Some of this will be down to individual bank's policies; some of the requirements will come from the Bank of Thailand. So, unless you are working it may be difficult to get a non-secured card, and even if you are working the income for foreigners may be higher than for Thai's (80k/month in my experience, but I really didn't check too many banks).

However, the secured card should count towards your credit history in Thailand. It is secured by cash, but it is still credit. Importantly, you are expected to pay the bill every month despite the credit being secured by cash. If you fail to pay and the bank takes the money from the secured collateral, it will show up as a negative item on your Thai credit report -- just like a home loan, if you fail to pay and they foreclose and get the property back it will be a negative item, even if the bank recovers all their money from the sale of the property.

[scandinavi]

However, the secured card should count towards your credit history in Thailand. It is secured by cash, but it is still credit. Importantly, you are expected to pay the bill every month despite the credit being secured by cash. If you fail to pay and the bank takes the money from the secured collateral, it will show up as a negative item on your Thai credit report -- just like a home loan, if you fail to pay and they foreclose and get the property back it will be a negative item, even if the bank recovers all their money from the sale of the property.

This was what I was thinking. I am not sure though if there is western style credit history database in Thailand. Anyway Visa Thailand will have customer database and when I later apply for another Visa credit card they can check that and see my payment history.

[vaultdweller0013]

There is a credit bureau in Thailand -- NCB. However, now that I think about it, I'm not sure if foreigners are tracked in their database. At the very least, the bank you have the secured card with will be tracking your performance on the card, which should make getting an unsecured card with them easier if you meet the income requirements.

I am not aware of any banks that use the payment history through the CC networks in calculating credit risk. There are a lot of regulations around credit reporting and I don't think Visa/MC/Amex qualify as such (at least in the US and Thailand), so I don't think they can legally provide your history to banks.

[watcharacters]

It seems to be relavitely easy to get secured credit card by using long term deposit as guarantee. Do Thai banks insist to keep the deposit for ever or is it possible to release the deposit after getting good credibility report?

Or can I get credit card from another bank after getting the local credibility report?

At the moment I dont have work permit and no long term visa either. I have had about four million baht in Kasikorn bank for three years.

.

Getting a CC from K bank was about as much fun as walking across a bed of hot coals what with the 7 or 8 visits to the bank and innumerable calls to the customer service center. I was able to finally get one for both me and the wife without a WP by putting 50K THB in a fixed account.

While I'm OK to leave the fixed deposit with them if I wanted to move it for any reason I think I'd simply try to get an automatic CC payment set up linked to my savings account. I can't imagine why that wouldn't work.

[MeowBundit]

Credit card w/o deposit issued only to someone, who WORK. In case you really need this security money - just cancel the card. Your savings account is just a savings and you free to withdraw money anytime, therefore bank not have any power this is why it secure/lock deposit

When you obtain WP, you can withdraw deposit. Maybe bank re-issue your card.

Kasikorn is one of the toughest bank to get secured CC. And really no worth of it, because others do this much more easily.

Anyway, anything about credit history in case of secured card is incorrect. Everyone, who had CC will receive yearly statement from credit history bureau. I got mine two statements for year 2013 just week ago. Security deposit is just a reason to issue for bank scoring system, and not linked to credit history.

[Pib]

If you are talking about setting up automatic payment from a separate, standard savings account you can probably do that, but I doubt it could be setup for automatic payment from the security deposit account setup as that account is basically collateral for the secured card and that is locked until you cancel the card.

Since your line of credit is based on the security deposit account allowing monthly payments from that account would draw down that account which if allowed to continue on a monthly basis could reduce the security deposit account to zero...then you would basically have an unsecured card. Plus your line of credit is based on the security deposit...if the security deposit was decreasing in value monthly due to the monthly payments then the maximum line of credit offered would need to be reset monthly/as at the secured deposit account reduced in balance due to the automatic payments. I can't see the the card-issuing bank allowing either of these to happen.

Edited February 2, 2014 by Pib

[Spoonman]

Getting a CC from K bank was about as much fun as walking across a bed of hot coals what with the 7 or 8 visits to the bank and innumerable calls to the customer service center. I was able to finally get one for both me and the wife without a WP by putting 50K THB in a fixed account.

While I'm OK to leave the fixed deposit with them if I wanted to move it for any reason I think I'd simply try to get an automatic CC payment set up linked to my savings account. I can't imagine why that wouldn't work.

Really ?

I went twice. first time to drop off the required paperwork and the second to sign for my card, maybe unsecured cards are easier to obtain.

[Tomtomtom69]

There will be minimum income requirements in order to qualify for a non-secured credit card in Thailand. In my experience, the income has to be from a Thai source; it cannot be foreign income. The fixed deposits are accepted as a replacement for the income requirement. Some of this will be down to individual bank's policies; some of the requirements will come from the Bank of Thailand. So, unless you are working it may be difficult to get a non-secured card, and even if you are working the income for foreigners may be higher than for Thai's (80k/month in my experience, but I really didn't check too many banks).

However, the secured card should count towards your credit history in Thailand. It is secured by cash, but it is still credit. Importantly, you are expected to pay the bill every month despite the credit being secured by cash. If you fail to pay and the bank takes the money from the secured collateral, it will show up as a negative item on your Thai credit report -- just like a home loan, if you fail to pay and they foreclose and get the property back it will be a negative item, even if the bank recovers all their money from the sale of the property.

35000 K is usually the minimum - for Thais it's 15000 K

[theoldgit]

Credit card w/o deposit issued only to someone, who WORK. In case you really need this security money - just cancel the card. Your savings account is just a savings and you free to withdraw money anytime, therefore bank not have any power this is why it secure/lock deposit

When you obtain WP, you can withdraw deposit. Maybe bank re-issue your card.

Kasikorn is one of the toughest bank to get secured CC. And really no worth of it, because others do this much more easily.

Anyway, anything about credit history in case of secured card is incorrect. Everyone, who had CC will receive yearly statement from credit history bureau. I got mine two statements for year 2013 just week ago. Security deposit is just a reason to issue for bank scoring system, and not linked to credit history.

It's not true that an unsecured credit card is only issued to somebody who works, I was invited to apply for a Thai Airways Amex Credit Card on the back of my ROP Gold Card, I'm retired and have never worked in Thailand, so don't have a Work Permit, my only income was my UK Civil Service Pension. I applied and my card was couriered a week or so later.

It is true about the Credit Bureau however, I get a print out every year, as I did with a car loan I had a while back.

[Satcommlee]

The banks are legally obliged to send you a copy of the data they submit to the national credit bureaux, Well at least I get a letter from Kasikorn once in a while saying this..

On this letter they show my credit history over the 12 months, and whether I pay on time etc.. and any current balances.

So I would assume if you have a "CREDIT FILE" of any sort, then I would assume you would also be getting these letters.

[fifthcolumn]

Ive not read the other posts but here it is.

I applied and was given secured debit card from scb, applied with thai gf (now wife) in tow. I was on a tourist visa and held two accts with them (one at the branch, another different branch). I was given 40k credit on 80k deposit @2.4%. Opened three years back, recently closed as I only needed it to rent cars in USA.

I had a few problems closing the card. First, staff at my bank speaks no English. Second, they gave me some bs about when I will recv the funds (actually, they had no clue and did not research). Customer Circus on the phone was little help (they are facilitators, not bank staff per-se). With five visits and at least as many calls, I was able to close the acct and have money in one of my scb accounts in about seven working days.

They are in no hurry to refund. Make sure you have evidence of your book, deposits and card before throwing anything into the abyss.

From what I gathered, my situation was expedited because I was doing dom yelling. Read on...

I wanted to pay bslance with the deposit. Cannot. So I went to machine to pay, it ate my card. With no card (and they keep the book), I was in a very sketchy position although I had all my copies of the book, paperwork and statements. I had no book nor a card and was not happy.I felt the staff honestly did not give a F. Being fed bs fr a few days did not give me a warm, fuzzy feeling.

Pay your card before closing

[fifthcolumn]

IMO they will happily give you a secured card, why not? They keep 2x funds on hold and charge +20%.

Gold

Mine

[Pib]

Ive not read the other posts but here it is.

I applied and was given secured debit card from scb, applied with thai gf (now wife) in tow. I was on a tourist visa and held two accts with them (one at the branch, another different branch). I was given 40k credit on 80k deposit @2.4%. Opened three years back, recently closed as I only needed it to rent cars in USA.

I had a few problems closing the card. First, staff at my bank speaks no English. Second, they gave me some bs about when I will recv the funds (actually, they had no clue and did not research). Customer Circus on the phone was little help (they are facilitators, not bank staff per-se). With five visits and at least as many calls, I was able to close the acct and have money in one of my scb accounts in about seven working days.

They are in no hurry to refund. Make sure you have evidence of your book, deposits and card before throwing anything into the abyss.

From what I gathered, my situation was expedited because I was doing dom yelling. Read on...

I wanted to pay bslance with the deposit. Cannot. So I went to machine to pay, it ate my card. With no card (and they keep the book), I was in a very sketchy position although I had all my copies of the book, paperwork and statements. I had no book nor a card and was not happy.I felt the staff honestly did not give a F. Being fed bs fr a few days did not give me a warm, fuzzy feeling.

Pay your card before closing

I think you meant to say secured "credit" card. A debit card is given pretty much automatically (unless refused) when opening a savings account for any amount (even the minimum opening amount of usually Bt500) and you can only debit amounts equal to or less than whatever balance you currently have in the savings account.

I would also expect a credit card account would not be closed by the bank if any balance remained; they may lock the card where no more transactions can occur but the credit card account would remain open with interest racking up day until the balance is paid.

[Crossy]

It's not true that an unsecured credit card is only issued to somebody who works, I was invited to apply for a Thai Airways Amex Credit Card on the back of my ROP Gold Card, I'm retired and have never worked in Thailand, so don't have a Work Permit, my only income was my UK Civil Service Pension. I applied and my card was couriered a week or so later.

I have this card too (although I do work).

It's been a while, but IIRC, when I applied the nice lady told me that AmEx are the only company to issue unsecured credit cards to those retired in Thailand.

[MeowBundit]

Credit card w/o deposit issued only to someone, who WORK. In case you really need this security money - just cancel the card. Your savings account is just a savings and you free to withdraw money anytime, therefore bank not have any power this is why it secure/lock deposit

When you obtain WP, you can withdraw deposit. Maybe bank re-issue your card.

Kasikorn is one of the toughest bank to get secured CC. And really no worth of it, because others do this much more easily.

Anyway, anything about credit history in case of secured card is incorrect. Everyone, who had CC will receive yearly statement from credit history bureau. I got mine two statements for year 2013 just week ago. Security deposit is just a reason to issue for bank scoring system, and not linked to credit history.

It's not true that an unsecured credit card is only issued to somebody who works, I was invited to apply for a Thai Airways Amex Credit Card on the back of my ROP Gold Card, I'm retired and have never worked in Thailand, so don't have a Work Permit, my only income was my UK Civil Service Pension. I applied and my card was couriered a week or so later.

It is true about the Credit Bureau however, I get a print out every year, as I did with a car loan I had a while back.

If we deep into Amex system (which is completely different from OP situation), the Amex is NOT a TH Banking service, even they do their business with BBL together. Amex will issue card for true, if you show savings more than 3 million in Thai Bank. They maybe issue for other reason, like your Pension.... In reality Thai banks will issue Credit cards for foreigners who work only, or able to secure deposit. The most friendly is BBL, foreigner can open CC only with 20k security or with really small salary. Others will ask salaries from 50 to 100k baht.

In my experience, BAY (Krungsri) and BBL (Bangkok Bank) is most friendly. BAY ask only non-imm VISA and security deposit about 50k baht. BBL ask non-imm VISA, home registration and deposit as low as 20k. BAY CC limit is 90% from secured deposit amount, BBL is 100% from deposit amount.