- Thread starter pati
- Start date
To have credit or not
pati said:
Yes, having good credit is a plus no matter where you reside and especially, as you put it, "not being independently wealthy" You never know when you're going to need it. You may just want to start a business one day, it will be a tremendous help if your credit info is out there. No bank is going to want to take a chance on you without that. Unless you have some very influential friends, relatives, etc. I'd say it couldn't hurt.
I suspect that the local credit database systems are not nearly as integrated as the US, and so that those making credit-loaning decisions base the majority of their decision on what you offer as a guarantee, not your local credit history.
Does anyone have any specific knowledge on this?
Does anyone have any specific knowledge on this?
adrianb said:
There is some kind of database out there. 4 years ago, I borrowed a few K?s from Banco Popular. My major objective was ?to establish a credit rating? and also didn?t want to cash in any certificates etc. I made 3 monthly payments than paid off the rest in one payment. NOW TO THE POINT. 3 years later, I was shopping for a cel phone and Tricom had a special. The catch was, you had to have credit. The girl looked at me and said it didn?t apply to extranjeros. I said why don?t you check out if I have a credit rating. She smiled and punched my cedula # in the computer. To her surprise, out I popped and she said ?no problem if I want the special promotion I can have it. She had never seen this before. For a few 100 pesos, I have a good credit rating. Not that I intend to use it at 40+% interest
Eddy said:
I was wondering what the rate had climbed to...yikes!!! Guess we'll be doing the financing on the house we buy in the DR here in Canada, for sure! That's an excellent idea to build credit, Eddy. At some point in the DR, especially with the example you used, one would need it.
In the DR there is always a way around, money.
I got my cell phone with tricom without even having a cedula, just by leaving a 2,500 peso cash deposit in my account.
A couple of months later, my wife without a cedula didn't even have to give a deposit.
I know a canadian, no credit, no job, no cedula that drives a new honda crv and is making payments on it.
Never under estimate la la land.
I got my cell phone with tricom without even having a cedula, just by leaving a 2,500 peso cash deposit in my account.
A couple of months later, my wife without a cedula didn't even have to give a deposit.
I know a canadian, no credit, no job, no cedula that drives a new honda crv and is making payments on it.
Never under estimate la la land.
Eddy said:
For now at least I was pretty much thinking along those lines as a reason to establish credit. I also have been considering constructing a small building in the years to come but at those rates I think I might look at alternative financing.
I don't know all the details but a friend of my husband loans money to people. He had suggested that to my husband as a possible business for us last year but I'm not crazy about the idea of chasing people down to collect on what they owe. The way my husband described it they have the person sign over some collateral so that if the loan isn't paid they just take the car, house or whatever they used for collateral. I've never spoken to them in depth about how this is done but I wonder if the rates are more favorable are more people using this as a method of getting the financing they need over the traditional bank loan.
It is pretty sad when the government is so corrupt, they make loan sharks a more viable option than the banking system.
Think about this for a moment.... The banks are loaning out money at 40% per year. The banks are paying 50% per year to depositors.
Again the la la land rule applies.
Think about this for a moment.... The banks are loaning out money at 40% per year. The banks are paying 50% per year to depositors.
Again the la la land rule applies.
Everyone Is Right
All comments above are basically on the money....this is la la land, unfortunately....still, you give up some things to gain others....so you adapt yourself and try to avoid the negative situations such as having to finance anything locally....for example, housing is very expensive so, I bought about 1/2 acre of land on top of a hill not too far from civilization with water and electricity available for about US1,000....then built a small cabin to spend weekends which cost me about US10,000 (two years ago with the exchange rate at 17 pesos per dollar---now it's at 44 per)....same goes for a vehicle....I refuse to pay 40% a year which means in 3 years you pay more than twice the new-car price (and it depreciates immediately upon driving it out of the dealer)....the only way to buy a new car is to pay cash for it....so I drive a 9-yr. old car and just keep it up and it's much less expensive....hope this helps.
All comments above are basically on the money....this is la la land, unfortunately....still, you give up some things to gain others....so you adapt yourself and try to avoid the negative situations such as having to finance anything locally....for example, housing is very expensive so, I bought about 1/2 acre of land on top of a hill not too far from civilization with water and electricity available for about US1,000....then built a small cabin to spend weekends which cost me about US10,000 (two years ago with the exchange rate at 17 pesos per dollar---now it's at 44 per)....same goes for a vehicle....I refuse to pay 40% a year which means in 3 years you pay more than twice the new-car price (and it depreciates immediately upon driving it out of the dealer)....the only way to buy a new car is to pay cash for it....so I drive a 9-yr. old car and just keep it up and it's much less expensive....hope this helps.
Is it always at such a high percentage when borrowing money from a traditional lender or is it because of the current government? Also is this where your "credit rating" would come in handy? I know in the U.S. the better your credit rating the lower the interest rate will be.
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A used car at 6% rate!!!!!!!
Several years ago,an American friend of mine decided to by a used car for his son.I explained the fact that used car dealers charge the highest rates.A few days later he proudly showed off his son's Toyota Corrola.They had paid about 120,000 pesos.Best part he explained was that the interest rate was only 6 %!!!!!I WAS amazed!To say the least! A few more days later,he again came to me and said that it was 6% a month!!! That was 36% a year!! Just about the norm in those days!!!It is much cheaper to take a cash advance from your US credit card,than a car or house loan in the DR!
I have a 17 year old Ford Van.I just had an electrical problem fixed,and a"Tune-Up",and an electric window repaired.Cost me 2000 pesos!!!!I smash into anyone who gets in front of me,and pay 2000 pesos a year for insurance!I will win a "Demolition Derby" with any "Jeepeta" you want to put up against me!!I don't care if mine is stolen,crashed,or burned!True peace of mind! CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
irate:
Several years ago,an American friend of mine decided to by a used car for his son.I explained the fact that used car dealers charge the highest rates.A few days later he proudly showed off his son's Toyota Corrola.They had paid about 120,000 pesos.Best part he explained was that the interest rate was only 6 %!!!!!I WAS amazed!To say the least! A few more days later,he again came to me and said that it was 6% a month!!! That was 36% a year!! Just about the norm in those days!!!It is much cheaper to take a cash advance from your US credit card,than a car or house loan in the DR!
I have a 17 year old Ford Van.I just had an electrical problem fixed,and a"Tune-Up",and an electric window repaired.Cost me 2000 pesos!!!!I smash into anyone who gets in front of me,and pay 2000 pesos a year for insurance!I will win a "Demolition Derby" with any "Jeepeta" you want to put up against me!!I don't care if mine is stolen,crashed,or burned!True peace of mind! CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
irate:
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Unlike the US, you will not get a lower interest rate if you have impeccable credit; but when applying for credit cards, bank loans, etc. they do require it. So even though you may not be thinking of financing anything at the moment (and who can blame you with those ridiculous interest rates) it will be in your best interest to establish some credit, as you never know what the future may bring. Another thing I heard from my father, companies are starting to run credit checks on new hires, this may not apply to you, but it's something to consider as well.
pati said: