To have credit or not

[pati]

In the U.S. having good credit is a big thing.You can borrow money and it can even save you money. Is it worth it for someone who is not independently wealthy (at least not yet) to try and build up credit in DR?

[trina]

From what I was told in 2000, the cost of borrowing was 26%. At that rate, I wouldn't think it would be worth borrowing to establish credit. Does anyone know the current rate of interest to borrow?

[Forbeca]

Originally Posted by pati

In the U.S. having good credit is a big thing.You can borrow money and it can even save you money. Is it worth it for someone who is not independently wealthy (at least not yet) to try and build up credit in DR?

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.

[adrianb]

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?

[Eddy]

Originally Posted by adrianb

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?

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

[Dolores]

Simple way to build credit is through your use of credit cards. Others may require you have managed a bank account to build your credit.

[trina]

Originally Posted by Eddy

For a few 100 pesos, I have a good credit rating. Not that I intend to use it at 40+% interest

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.

[gringo in dr]

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.

[trina]

Originally Posted by gringo in dr

Never under estimate la la land.

Truer words might never have been spoken!

[marymack]

Assuming that you guys are not all millionaires, and a loan is necessary to purchase major items such as a house, or a car, how is it done in the DR.

Miranda