living on credit

[notrub]

I spent the last 30 odd years living and working in France.  In that country there is no monthly credit card rollover.  You use your card for convenience and every month 100% of what you charged is paid from your account.  If there is not enough in your account to pay then you get a strong letter from the bank requiring you to come in and settle your outstanding credit card balance - within a day or two. Failure to do this results in cancellation of your cards and restrictions placed on your bank account.  This control on your account can last for years (10 last I heard) and it is something nobody wants for obvious reasons.  That also means no chequebook and withdrawing money from the branch where you have your account is the only way to get cash.  You can pay money in but cheques must clear before you can withdraw the money from those cheques.  Paycheques, for example. People are very careful there.

 

If you want to buy something costly then you arrange a loan but you cannot borrow more than you can pay back.  All of these loans go through the central bank of Paris and they are all added up to determine your credit limit and will or will not allow you to buy that new tv or something..  Many big shops offer a 'pay 3 times'  option as a way around these restrictions and I don't know what happens if you default on that.  I suppose it goes back to the bank default and you must pay, or else.

 

Having lived that way for so long I am used to it and look with amazement at countries where anybody, even the unemployed, can get credit for anything,  The 20+ odd%  charges the card companies get is criminal.  I never think about my credit limit only what I actually have when I want to buy something.  

 

So I am a bit mystified by all the comments about use of cards here in Thailand as a guarantee for visas etc..

[ubonjoe]

13 minutes ago, notrub said:

So I am a bit mystified by all the comments about use of cards here in Thailand as a guarantee for visas etc..

That is not possible. No sure what made you think it was possible.

[chainarong]

Not only that if you had 6 grand on the card at the minimum amount payable it would take U 30 years to repay , but hey , who gets the interest.................................................

[notrub]

I got confused as the subject of a 'visa letter' from BKK morphed into credit card use and guarantees.  I have had letters from BKK bank confirming my deposit and mostly found them to be unhelpful about this.  No matter how many smiles come with the service.  I have a Kbank debit card and a BKK card too.  Both are visa (not that union one)  and have been registered for internet use.  They seem to work OK.

 

I have that letter from the embassy link you sent to me and I hope that will be solution when I make the monthly deposits too.  Thanks again for that link. 

[ubonjoe]

2 minutes ago, notrub said:

I have that letter from the embassy link you sent to me and I hope that will be solution when I make the monthly deposits too.  Thanks again for that link. 

If you can prove income to get the letter from the embassy that certainly is the best option. No need for the letter from the bank, updated bank books or the chance that for some reason the required amount was not there for the required amount of time.

I base that on many reports on here of people having a problem because the balance dropped below the requirement for various reasons. Even a few baht below for a few hours can be a problem.