Explaining Thailands Financial Credit Score: How to Improve Your Credit for Easier Loans and Lower Interest Rates

"It's hard to get a bank loan because of bad credit." This phrase is often heard.
Many have heard this often, but behind the phrase 'bad credit,' we need to find the cause, understand which behaviors are considered poor, and learn how to comprehend and plan corrections to access the formal credit system as desired.

Having credit information in the system is better than having none.

Dr. Latsamon Atthapich, President of the National Credit Bureau Company Limited (NCB), explained that currently Thailand has 39.18 million working-age people aged 20-60, but only 23.5 million, or 60%, have credit data in the system. This means that 40% of working-age Thais still have "no credit information."

Many people today have good financial behavior—paying on time and in full—but since they haven't borrowed within the system, they become "good behavior but nobody knows." When financial institutions don't see this data, obtaining large future loans (such as home or car loans) may be more difficult. Thus, having information in the financial system is better, and disciplined good financial behavior increases opportunities to access credit.

By 2026, the company plans to launch a credit score checking service via LineOA, supplemented by email notifications, so everyone can clearly understand their own financial information.

Five factors used to calculate credit scores.

Once we have credit history in the database, a "credit score" is generated. This score is calculated from past financial behavior including payment history, credit utilization, credit history length, credit mix, and new credit inquiries. The highest score level, AA, ranges from 753 to 900 points. These scores are calculated from five main factors:

• Payment History: Paying debts on time and in full according to terms has the most positive effect on the credit score.
• Amount Owed: Using credit within reasonable limits and not maxing out credit lines positively impacts the score.
• Length of Credit History: The longer and more continuous the good credit history, the more trustworthy it appears.
• Credit Mix: Having various types of credit and managing them well reflects good debt management ability.
• New Credit Inquiries: Multiple loan applications in a short period suggest increased financial need.

Risk-based Pricing: Good discipline means cheaper loans.

Narit Sathapoldetcha, Head of Data and Analytics at ttb, said credit scores are like "financial lucky numbers" that everyone can build through discipline. Having a good credit score clearly provides financial advantages, such as easier access to large loans like car or home loans, or possibly lower interest rates. Bank statistics show over 77% of home loan applicants had prior credit bureau history, and the figure is even higher at 83% for personal loans.

Additionally, Thai financial institutions increasingly apply Risk-based Pricing, setting interest rates according to borrower risk levels. This benefits those with good financial behavior and high credit scores, who receive better terms such as lower interest rates. Currently, ttb uses a Risk-based Pricing model in its "Good Payer Loan" program (through ttb Cash2Go personal loans), approving over 23,000 loans totaling more than 4.1 billion baht, reducing customers' interest expenses by over 650 million baht. More than 80% of customers accessed loans with average interest reductions of 5% per year.

Ultimately, a credit score is like a double-edged coin: if we maintain financial discipline by paying on time and borrowing only what we can repay, our credit history will be “good,” and financial institutions will be more willing to lend appropriately and more easily.

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