International and Thai credit, debit cards

According to the web search results, there are different options for using credit, debit cards in Thailand, depending on your needs and preferences. Some of the factors to consider are:

The exchange rate and fees for loading and withdrawing Thai baht

The availability and acceptance of different card brands, such as Visa, Mastercard, and American Express

The benefits and perks of different cards, such as travel insurance, rewards, and wifi access

The requirements and eligibility for applying for a Thai credit card as an expat

How do I apply for a Thai credit card as an expat?

To apply for a Thai credit card as an expat, you need to meet some requirements and follow the application process of the bank you choose. Here are some general steps and tips:

First, you need to have a work permit and demonstrate proof of income. Usually, you need to show at least three months of salary slips and bank statements. You also need to provide a copy of your passport and visa

Second, you need to check the minimum income and maximum age requirements for the credit card you want. Different banks and cards have different criteria, and foreigners usually need to earn more than Thais to qualify

Third, you need to fill out an application form online or at a branch. Some banks may call you back or send an employee to collect your documents. The approval process may take a few days or weeks

Fourth, you need to pay a yearly fee for your credit card, unless you can waive it by spending a certain amount or having a good credit history

Some of the banks that are considered foreigner-friendly are Kasikorn Bank, SCB Bank, UOB Bank, and AEON. They offer various benefits and perks, such as air miles, travel insurance, cash back, discounts, and more

If you don’t have a work permit, you may be able to get a secured credit card by placing a deposit guarantee of 100,000-200,000 THB in a fixed term account. Alternatively, you can use a Visa debit card, ATM payments, counter services, or bank transfer to pay for goods and services in Thailand

What is the interest rate for Thai credit cards?

The interest rate for Thai credit cards depends on the type of card and the bank that issues it. Generally, the maximum interest rate for credit cards is 16% per year, according to the Bank of Thailand. However, some cards may have lower or higher rates depending on the benefits and fees they offer. For example, some of the best credit cards in Thailand have interest rates ranging from 13% to 20% per year. You can compare different credit cards and their interest rates on comparison websites like [MoneyGuru] or [MoneyHub].

How do I avoid paying interest on my credit card balance in Thailand?

There are several ways to avoid paying interest on your credit card balance in Thailand. Here are some of the most common ones:

Pay your bill in full every month before the end of the grace period. This is the simplest and most effective way to avoid interest charges. The grace period is usually at least 21 days from your statement date

Use a 0% APR promotion wisely. Some credit cards offer an introductory 0% APR period on new purchases or balance transfers. This can help you save money on interest if you pay off the balance before the promotion ends. However, be careful of the fees and the regular interest rate that will apply after the promotion

Avoid cash advances. Cash advances are transactions where you withdraw cash from your credit card, such as at an ATM or a bank. Cash advances do not have a grace period and usually have a higher interest rate and a fee. They should be avoided unless absolutely necessary

Use a personal loan or a secured credit card. If you have a large balance that you cannot pay off in full, you may consider using a personal loan or a secured credit card to consolidate your debt. A personal loan may offer a lower interest rate and a fixed repayment plan. A secured credit card requires a deposit as collateral, but may have a lower interest rate and help you build credit

What is the average credit card debt in Thailand?

According to the web search results, the average credit card and personal loan debt in Thailand was 1.24 million baht (about US$ 37,000) in November 2023. This was higher than the average credit card debt in the US, which was $5,910 in 2023. The pandemic and the flood crisis have contributed to the rising household debt in Thailand. You can find more information about credit card debt by country on this website

What is the minimum payment for Thai credit cards?

The minimum payment for Thai credit cards varies depending on the type of card and the bank that issues it. Generally, the minimum payment is 10% of the total amount as per the monthly statement, or a fixed amount of 200 baht, whichever is higher. However, some cards may have different minimum payment requirements, so you should check the terms and conditions of your card carefully

Paying only the minimum amount every month will incur interest charges and prolong your debt. Therefore, it is advisable to pay more than the minimum payment or pay your bill in full every month before the end of the grace period

What is the difference between credit and debit?

Credit and debit are two terms that are used in accounting and finance, as well as in everyday transactions with cards. Here are some of the main differences:

In accounting and bookkeeping, credit and debit are used to record the changes in the value of different accounts. Debit means to increase an asset or expense account, or to decrease a liability or equity account. Credit means the opposite: to decrease an asset or expense account, or to increase a liability or equity account. For example, when a company buys inventory with cash, it debits the inventory account and credits the cash account.

In banking and card transactions, credit and debit refer to the source of funds for the payment. A credit card allows the user to borrow money from the card issuer, up to a certain limit, and pay it back later with interest. A debit card allows the user to access the money in their bank account and pay it immediately. For example, when a customer pays with a credit card, they are using the card issuer’s money. When they pay with a debit card, they are using their own money.

Credit and debit cards also have different benefits and drawbacks for the user. A credit card can help build a credit history, offer rewards and perks, and provide protection against fraud and disputes. However, a credit card can also charge high interest rates, fees, and penalties, and tempt the user to overspend and accumulate debt. A debit card can help the user avoid debt, fees, and interest, and keep track of their spending. However, a debit card may have lower security and fewer benefits than a credit card, and may not be accepted everywhere

How do I choose between a debit and credit card?

Debit and credit cards are both convenient ways to pay for goods and services, but they have different advantages and disadvantages. Here are some factors to consider when choosing between them:

Your spending habits: If you want to avoid debt and overspending, a debit card may be a better option, as it only allows you to spend the money you have in your bank account. A credit card can help you pay for large or unexpected expenses, but it can also tempt you to spend more than you can afford and incur interest charges

Your credit history: If you want to build or improve your credit score, a credit card can help you do that, as long as you pay your bills on time and keep your balance low. A debit card does not affect your credit score at all, as it does not involve borrowing money

Your rewards and benefits: If you want to earn rewards and perks, such as cash back, points, air miles, travel insurance, and discounts, a credit card may offer more options and value than a debit card. However, you should also consider the fees and interest rates that may apply to your credit card, and whether they outweigh the benefits

Your security and protection: If you want to protect yourself from fraud and disputes, a credit card may offer more security and liability protection than a debit card. For example, if someone steals your credit card and makes unauthorized charges, you can dispute them and limit your liability to a certain amount. If someone steals your debit card and drains your bank account, you may have a harder time recovering your money

How do international credit and debit costs differ?

International credit and debit costs differ depending on the type of card, the card issuer, the payment network, and the country where the transaction is made. Here are some of the main factors that affect the costs:

Foreign transaction fee: This is a fee charged by the card issuer or the payment network for converting the currency of the transaction. It usually ranges from 1% to 3% of the purchase amount. Some cards do not charge this fee at all, while others may charge higher or lower rates depending on the benefits and fees they offer

International ATM fee: This is a fee charged by the card issuer or the bank that owns the ATM for using an ATM network in another country. It usually ranges from $1 to $5 per withdrawal, plus a percentage of the amount withdrawn. Some cards may reimburse this fee or have partnerships with foreign banks to waive this fee.

Currency conversion fee: This is a fee charged by the merchant or the ATM for offering the option of paying in your home currency instead of the local currency. This is also known as dynamic currency conversion (DCC) and it usually involves a poor exchange rate and a markup of 3% to 7% . You can avoid this fee by always choosing to pay in the local currency.

What is the best credit card for international travel?

There is no single best credit card for international travel, as different cards may suit different travelers’ needs and preferences. However, some of the features that make a good travel credit card are:

No foreign transaction fees. These are fees charged by the card issuer or the payment network for converting the currency of the transaction. They usually range from 1.5% to 3.5% of the purchase amount. Some cards do not charge this fee at all, while others may charge higher or lower rates depending on the benefits and fees they offer

Wide acceptance. Some card brands, such as Visa and Mastercard, are more widely accepted than others, such as American Express and Discover, in certain countries or regions. You may want to check the acceptance rate of your card before you travel, or carry a backup card in case your primary card is not accepted

Travel rewards and benefits. Some cards offer generous rewards and perks for travel-related expenses, such as flights, hotels, car rentals, dining, and more. You may earn points, miles, or cash back that you can redeem for travel or other purposes. You may also enjoy benefits such as travel insurance, lounge access, airport transfers, and more .

Security and protection. Some cards offer more security and liability protection than others for international transactions. For example, some cards have chip-and-PIN technology, which is more secure than chip-and-signature or magnetic stripe cards. Some cards also offer fraud alerts, zero liability, and dispute resolution services .

Based on these features, some of the best credit cards for international travel are:

Chase Sapphire Preferred® Card: This card offers flexibility and value for travelers. It has no foreign transaction fees, and it earns 5x points on travel purchased through Chase Ultimate Rewards®, 3x points on dining and 2x points on all other travel purchases. You can transfer your points to over a dozen airline and hotel partners, or redeem them for travel at a 25% higher value through Chase. You also get travel insurance, such as trip cancellation and interruption, baggage delay, and rental car damage waiver.

Capital One Venture X Rewards Credit Card: This card offers simplicity and high rewards for travelers. It has no foreign transaction fees, and it earns 2 miles per dollar on all eligible purchases and 5 miles per dollar on flights and 10 miles per dollar on hotels and car rentals booked through Capital One Travel. You can redeem your miles for any travel purchase, or transfer them to over 15 airline and hotel partners. You also get a $300 annual travel credit, a Global Entry or TSA PreCheck credit, and access to over 1,300 airport lounges.

The Platinum Card® from American Express: This card offers VIP travel perks for travelers. It has no foreign transaction fees, and it earns 5x points on flights booked directly with airlines or with American Express Travel and prepaid hotels booked on amextravel.com. You can use your points to book travel through American Express, or transfer them to over 20 airline and hotel partners. You also get a $200 annual airline fee credit, a $200 annual Uber credit, a $100 annual Saks Fifth Avenue credit, a Global Entry or TSA PreCheck credit, and access to over 1,200 airport lounges.