Car Loan and Credit Card

[Johnny Numbers]

What's good everyone,
So I'm new in the DR and was considering getting a loan to buy a car. I was wondering the following:

1. What interest rates are for around here?
2. What are interest rates for credit cards like?
3. Do you need to have residency to get a loan?
4. Do they check your credit from your home country if you're not a citizen?

[GringoCArlos]

1. Sorry - have never taken a car loan, but interest rates are high.

2. My Banco Leon credit card had a very high interest rate - at times close to 72% annually. And, if you didn't pay the balance off each month, they charged interest on the entire month's balance, rather than just on the balance outstanding on the payment due date.

3. I think this is a requirement from any DR financial institution. Which country lends money to tourists or people without significant ties to the country, or local assets which can back up any type of loan?

4. They check your credit in the DR, (there is a credit bureau in the DR) which is why very few foreigners who have been in the DR for less than several years can get credit from anyone other than extremely high interest loan agencies.

If you have the $$ in hand, you may be able to use it as collateral against a loan to establish credit in the beginning.

[donP]

Originally Posted by GringoCArlos

If you have the $$ in hand, you may be able to use it as collateral against a loan to establish credit in the beginning.

Cash as security?
Interesting....

donP

[Tamborista]

Originally Posted by donP

Cash as security?
Interesting....

donP

I believe what G.C. is referring to is known as a "secured" credit card/loan, a way to establish/re-establish credit worthiness, without actually borrowing the dough.

[J D Sauser]

Car loans in DOP have in recent years been offered at interests ranging from 12% way into the 20's%. The later seems to be the tendency.
There are bank sponsored sales events called "feria" where preferred rates may be offered for certain vehicles models or brands. These "ferias" can be small tent events and also become a major local shows during several days.
Some car loans may end with a balloon payment which may, depending on the monthly payments, be higher than the initial loan!

... J-D.