Establish New Credit? Anyone?

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torreylee

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Hi all,

I recently moved to Santiago and I have my temp residency and Cedula now!

I wanted to know if any of you have benefited from moving to the DR and establishing a good credit rating quickly. And if so how did you go about it?

Also are there any folks on here who feel like me and are really happy to get this new opportunity to have A GOOD CREDIT RATING? It's like being 18 all over again, but this time I know what NOT to do with my money, lol....

Anyway, Im interested in hearing from you all.
 
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RacerX

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hey man, did you call Rolin at the airport? He told me he was buying a new car(newer). How re things going so far?

Establishing credit in the DR? Nope, didnt do it, dont care to. I m good paying cash for everything that I need...and I dont need much.

Hows the apartment hunt going? Where s the dog?
 
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RacerX

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Plus you ll need to be here like a 100 years to be considered a good risk. Right now, you re a foreign dude and when things dont pan out you can always take the next flight back to Wonderland. So let them keep their pesos and you keep your dollars and all the world is fried chicken and gravy.
 
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cobraboy

cobraboy

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  • Take $1000. Deposit it any good Dominican bank.
  • Get a credit card, LOC or some other kind of loan...for less than the $1000... using the deposit as collateral.
  • Put the loan proceeds in another account.
  • Pay the loan back well within the contract conditions, in fact before, early.
You will pay a lot of interest but you've established credit with that bank.

Or buy a moto from one of the bigger moto/loan dealers.

And be aware: some banks here DO use TU, Equifax and the CR agency to get info on your credit history. I know this from personal experience: BHD ran a credit report on me to get a company ATM card. So if you're running from a bad credit history, it may follow you here...
 
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el forastero

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Most foreigners don't have a credit rating here in the DR and either don't pursue it or know how to get it.

There have been other threads about getting a secured credit card with a small limit from a bank. Over time, they will drop the "secured" part, and you will be building a credit rating here in the DR.

I received an unsecured DR credit card when I first came here, and had to provide a US credit report as part of that process. (and had a personal referral from a Dominican executive for the account). At that time, I knew only one other foreigner with an unsecured Dominican credit card in their pocket.

If you have good credit in the US, an alternative for a mortgage from a DR bank would be a US-based company giving mortgages for DR property, but it comes at a cost.
 
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Eddy

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cobraboy said:
  • Take $1000. Deposit it any good Dominican bank.
  • Get a credit card, LOC or some other kind of loan...for less than the $1000... using the deposit as collateral.
  • Put the loan proceeds in another account.
  • Pay the loan back well within the contract conditions, in fact before, early.
You will pay a lot of interest but you've established credit with that bank.

Or buy a moto from one of the bigger moto/loan dealers.

And be aware: some banks here DO use TU, Equifax and the CR agency to get info on your credit history. I know this from personal experience: BHD ran a credit report on me to get a company ATM card. So if you're running from a bad credit history, it may follow you here...
Click to expand...

Right on.

Opened an account at Banco Popular many years ago, to me it?s the top bank in the DR. They gave me a local pesos and an International card with a good limits. 10+ years ago and just for the heck of it, I applied and got a 100.000.00 pesos loan secured by a CD of the same value. Because of the exorbitant interest rates at the time, I paid it off in 6 months. Well guess what. Every year the bank calls me to try to get me to buy a new SUV at their car show (Or whatever they call it), and they will finance it; they have traded my cards to ?Gold Cards?. Etc. I?m sure that if you walk down the same path, the results will be the same. Of course owning property here must help.
 
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ExtremeR

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I think this has been asked before, but why don't foreigners take credit on their home country at really low interest rates compared to the DR? Lack of collateral? Income in Pesos so yo may have the risk that it devalues? Have anyone tried to go that way??

That's what I'm thinking I may do when the times comes to buy an apartment in Santo Domingo.
 
cobraboy

cobraboy

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ExtremeR said:
I think this has been asked before, but why don't foreigners take credit on their home country at really low interest rates compared to the DR? Lack of collateral? Income in Pesos so yo may have the risk that it devalues? Have anyone tried to go that way??

That's what I'm thinking I may do when the times comes to buy an apartment in Santo Domingo.
Click to expand...
Banks are asset lenders. The % of unsecured debt they own is far less than 1%.

They won't lend on property outside states they are licensed in because of the difficulty of collection. Certainly a foreign country qualifies.
 
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torreylee

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cobraboy said:
Banks are asset lenders. The % of unsecured debt they own is far less than 1%.

They won't lend on property outside states they are licensed in because of the difficulty of collection. Certainly a foreign country qualifies.
Click to expand...

Makes sense to me, thats why I see the need in establishing credit over here. I dont believe the hype about it being nearly impossible.
 
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ExtremeR

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cobraboy said:
Banks are asset lenders. The % of unsecured debt they own is far less than 1%.

They won't lend on property outside states they are licensed in because of the difficulty of collection. Certainly a foreign country qualifies.
Click to expand...

Yeah, that's logical. But my question is why not take a mortgage on an asset in the US and use that money to buy an apartment in the DR? The savings could be substantial.
 
bienamor

bienamor

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ExtremeR said:
Yeah, that's logical. But my question is why not take a mortgage on an asset in the US and use that money to buy an apartment in the DR? The savings could be substantial.
Click to expand...

And what Asset would that be. If your moving down here are you keeping a paid up house up there, would cover the loan amount. most are looking at a min of 150k+ for buying down here an some a lot plus.

But your right the amount on interest would be substantial.
 
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SteveS

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I have heard that the main credit reference agency that people rely on here is actually Codetel. Most people use or have used them, and the information is reliable as to whether or not you pay.

So make sure you pay your phone bill on time and in full every month and this gives you a start.... I believe the other utilities do have a degree of reporting also.

Just a note as certainly in other countries this is not as important as it is here.
 
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bienamor

bienamor

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SteveS said:
I have heard that the main credit reference agency that people rely on here is actually Codetel. Most people use or have used them, and the information is reliable as to whether or not you pay.

So make sure you pay your phone bill on time and in full every month and this gives you a start.... I believe the other utilities do have a degree of reporting also.

Just a note as certainly in other countries this is not as important as it is here.
Click to expand...

The reason for that was, CODETEL belonged to Verizon, their bill processing was done in the US, and processed against the Credit Agency's prior to that they used a couple of agency's here plus you had to have a deposit on record at Banco Popular.

Not sure what they are doing now. They converted off Verizons billing system March of last year. This was their wireline system, wireless converted a couple of years before that.
 
J D Sauser

J D Sauser

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in principle an attractive idea... many have done it, some loosing all over it NOW.

ExtremeR said:
Yeah, that's logical. But my question is why not take a mortgage on an asset in the US and use that money to buy an apartment in the DR? The savings could be substantial.
Click to expand...


Many have done that until 2008. This was part of what triggered the RE race here.
Then the collapse. Many had taken "virtual equity" out and exported "low interest" loans to buy into their dream projects in exotic locations but now need to repatriate that money to save their own roof. Dreams turned nightmares. Guess what, it so turns out that selling is not as easy as the buying seemed to be here too by now.
It can quickly turn out to prove itself as an ill faithed technique, because both "homes" become linked to the economies of BOTH countries.
It is difficult enough to foresee ONE country's future economy, yet alone TWO and one of which being a third world country with a history of capricious economical behavior.

In other words, it's a high risk advanced technique, I feel no one should try with their own HOME. Don't bet the ranch!

... J-D.
 
J D Sauser

J D Sauser

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cobraboy said:
CB's Law Of Real Estate I: If it's easy to buy, it will be hard to sell.
Click to expand...

:D

Good one... READ CB's words, heed his advise, too many learn that way too late here, usually a couple of 10's of thousands of Dollars late. There is a lot of wisdom in that short sentence above!

It's interesting to see how many come to locations like these, exotic, legally challenging and business wise difficult to navigate, with the intention to play
"investor" when they haven't been investors ever in the country/environment they know and then, not only consider dumping their life savings, but betting "the farm" on some "rush-rush" buy rating from a self declared RD agent (on the take).

.... J-D.
 
cobraboy

cobraboy

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RacerX said:
How about: Whatever you buy, it will be hard to sell.
Click to expand...
Not true.

There are many properties that are in high demand, depending on the price.

Problem is many foreigners buy in the wrong places and pay too much.

Location, location, location...
 
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