How does one establish credit in the Dominican Republic?

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El Tigre

El Tigre de DR1 - Moderator
Jan 23, 2003
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Boy was I shocked when I learned from a friend that my excellent FICO score means pretty much nothing in the D.R.!!!!! And, that doing business with a Cooperativa does not guarantee you credit in the D.R. in fact...it doesn't actually count.

I found this out through a friend of mine that works at Orange. We were casually talking about the different Orange plans available. She mentioned the Max plan and I immediately said, "Oh I bet I qualify for that one because of my excellent FICO score in the States." She immediately said, well, we don't go by that here. We use DATACREDITO. And to get the MAX plan you'd have to have a great history with bank accounts, credit cards etc established in the D.R.

Is what my friend telling me true? If so, what are the first steps you'd recommend to establishing credit in the D.R.?
 
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cobraboy

cobraboy

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I have found the same thing.

Any hints would be well received...
 
NALs

NALs

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Maybe its me, but I think El Tigre answered his own question.

-NALs
 
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LindseyKaufman

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Aug 21, 2007
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Yep. I had a similar experience with Codetel. Doesn't make sense. I can pay cash for a house and car and pay all my utilities here in the DR on time, but Codetel would not put a phone in my house because I didn't have credit as far as they are concerned.

We solved the problem by putting the phone in my friend's name.

But still......

Lindsey
 
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Adrian Bye

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Jul 7, 2002
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i think you can put down a deposit if you don't have credit to get the good plans. i did that in the beginning but apparently i have reasonable credit now although i don't use it. i don't think good credit here means much.
 
bachata

bachata

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Aug 18, 2007
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This is what I did, I opened saving accounts in tow different banks and they issued me safe credit cards. This way I’m establishing credit here in the US, maybe you can do the same in the DR. check with the local banks.

JJ
 
Bronxboy

Bronxboy

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Jul 11, 2007
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bachata said:
Right " secured cards ", and I can spend only part of the money that I have in my balance.

JJ
Click to expand...

Yep, and when the time is right (like a year) the bank will give you back your secure deposit with interest and issue you a "no deposit" required cc.

You are then on your way to getting more cc offers. This even works for someone who files bankruptcy!!!!!
 
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suarezn

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Feb 3, 2002
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The DR is not using the FICO formulas, but Datacredito is using something called Predictive Caltec Score which is probably like FICO. I just hope getting a loan doesn't get like The US where your FICO (very flawed IMO) is all that matter and nothing else. Datacredito says this on their website:

?Qu? es una Historia de Cr?dito?
Es un registro objetivo e imparcial que contiene toda la informaci?n acerca de la forma como Usted ha cumplido sus obligaciones con entidades prestadoras de cr?dito o servicios como: Bancos, compa??as de financiamiento comercial, cooperativas, empresas de servicios como telefon?a celular, televisi?n por suscripci?n, o almacenes a cr?dito, entre otras.

So it does look like Coops do count. I know that taking a guaranteed loan on a bank (i.e. one with your house as collateral) definitely counts. Secured credit cards, cable service, etc.
 
C

Chip

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Jul 25, 2007
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I depends on what type of business and loan as to whether or not you need to establish credit here.

Currently after three years here in the DR I still haven't established credit and haven't had the need. For example, I understand that credit is needed to get phone service but not power or cable. However, there are ways around this. For example, in order to get a phone/internet I got my sister in law to put it in here name and after three months I transfered it into my name. Also, I was able to get a RD2.6M loan from a local cooperative based soley on my US credit rating and my last two tax returns.
 
NALs

NALs

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suarezn said:
I just hope getting a loan doesn't get like The US where your FICO (very flawed IMO) is all that matter and nothing else.
Click to expand...
After a certain income level your FICO score can be as important as your income statement. The latter takes precedence.

-NALs
 
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mountainannie

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Dec 11, 2003
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elizabetheames.blogspot.com
I was told by an officer at BanReservas that in order to establish credit here you need to have your cedula. With that, they can trace your records of payments on various accounts, issue you a credit card, etc. Perhaps this is just something that everyone already just asssumed but there is SO much that you can do here - like buy houses and just LIVE without worrying about a cedula that it is good to know that in addition to getting a driver's license - getting a credit card is another reason... or so I am told...
 
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El Tigre

El Tigre de DR1 - Moderator
Jan 23, 2003
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Nals,

How did I answer my own question???

Anyway, I don't think having a bank account with Banco Popular guarantees you credit.

Is there such thing as a secured credit card in the DR? That is how I got my credit here in the US when I was 18.

Thanks.
 
R

rubio_higuey

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Feb 7, 2007
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cobraboy said:
I have found the same thing.

Any hints would be well received...
Click to expand...


You need to get a hold of an "Orange angel" who can help you out... my MAX was established that way over 2 years ago (previous great history with Flex plans DOES NOT count there)

On the other hand, if you have a home line with Codetel, you qualify for an open MAX-LIKE plan on Claro.
 
NALs

NALs

Economist by Profession
Jan 20, 2003
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El Tigre said:
Nals,

How did I answer my own question???
Click to expand...

As the story goes:

El Tigre said:
She immediately said, well, we don't go by that here. We use DATACREDITO. And to get the MAX plan you'd have to have a great history with bank accounts, credit cards etc established in the D.R.
Click to expand...

The answers you are getting are not much different from what your friend told you already.

-NALs
 
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El Tigre

El Tigre de DR1 - Moderator
Jan 23, 2003
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So can one apply for a secured credit card in the DR in order to stablish a credit history with DataCredito?

Come on...where are the experts??? (the ones that live ON the island).
 
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