5 ms·

> This is location dependent though Definitely true. > Meanwhile in Europe, there is no reason to have a credit card instead of debit Ehh, I'm not sure I'd a

by lol768 6y ago

> This is location dependent though Definitely true. > Meanwhile in Europe, there is no reason to have a credit card instead of debit Ehh, I'm not sure I'd agree 100% with this one. You can certainly get by with just a debit card (and enjoy the access to e.g. the chargeback scheme) but I find credit cards a useful tool to build credit (and my credit history built up by never missing a CC payment undoubtedly helped me out when I applied for a mortgage). There's also the benefit of rewards which, although are smaller than in the states (because the interchange fees are better regulated), you may as well take advantage of. I'd add a footnote to this to say: I use my CCs purely as charge cards and have a direct debit set up to this effect.

capableweb 6y ago
Yeah, credit history is something I never really cared about as I don't have any interest in getting a loan or touch anything else related to credit histories, so I'm probably a bit biased in that. I also guess the cost of living is so low where I live so I (together with many others) don't need to be able to take loans, not even to be able to afford a house. Edit: not a complaint, just found it funny that someone thought of to downvote me a minute after I wrote my comment, because me and others around me don't need credit to afford a house? HN sometimes is funny.
- lol768 6y ago
  > Yeah, credit history is something I never really cared about as I don't have any interest in getting a loan or touch anything else related to credit histories, so I'm probably a bit biased in that. Fair enough! I wish that were the case in my part of the UK ;)
- elric 6y ago
  Credit history is equally location dependent as the use of credit cards. It's simply not a thing over here. Whether you'll be granted a mortgage (usually) simply depends on whether or not you have a steady source of income that's sufficient to cover the risk. Whether or not you missed a CC payment when you were on an extended trip really doesn't factor into it. I think I prefer it this way.
Jommi 6y ago
Building credit is not a thing in most european countries.
- yjftsjthsd-h 6y ago
  How do they handle assessing creditworthiness, then? Ex. someone walks into a bank and asks for a loan to buy a house. How does the bank evaluate that?
  - sofixa 6y ago
    As another person responded - based on your income and situation ( family, age, stability of the job) and very basic loan history ( stored at the central bank, basically for the lender to know if you have outstanding debts and if you've defaulted on loans before)
  - capableweb 6y ago
    A) Do you have a job? B) How long you've had the job? C) How much is your salary? D) You have family? And so on. Bunch of questions and documents back and forth until the bank is confident you'll pay back. It's funny to hear people from North America talking about the scary new Chinese "Social Points" system when they've had credit score for such a long time they don't even think about it anymore and find alternatives strange and hard to imagine.
    - throwaway201103 6y ago
      The credit score in the US is based entirely upon one's assets, income, current amount of debts, and payment history. It doesn't include what one posts on social media or what political party one votes for. At least not yet.
      - felixfbecker 6y ago
        The US credit score has nothing to do with income. In Europe if you have good income you can get a credit. As an immigrant to the US with no US credit history that is near impossible. In the US you start with the worst possible credit score and need to take on debt to prove that you are worthy to take on debt, which is crazy. As a counter example in Germany you are basically born with the perfect credit score, and you can only make it worse (e.g. by not paying back a loan).

by lol768 6y ago

capableweb 6y ago

Yeah, credit history is something I never really cared about as I don't have any interest in getting a loan or touch anything else related to credit histories, so I'm probably a bit biased in that. I also guess the cost of living is so low where I live so I (together with many others) don't need to be able to take loans, not even to be able to afford a house. Edit: not a complaint, just found it funny that someone thought of to downvote me a minute after I wrote my comment, because me and others around me don't need credit to afford a house? HN sometimes is funny.

lol768 6y ago
> Yeah, credit history is something I never really cared about as I don't have any interest in getting a loan or touch anything else related to credit histories, so I'm probably a bit biased in that. Fair enough! I wish that were the case in my part of the UK ;)
elric 6y ago
Credit history is equally location dependent as the use of credit cards. It's simply not a thing over here. Whether you'll be granted a mortgage (usually) simply depends on whether or not you have a steady source of income that's sufficient to cover the risk. Whether or not you missed a CC payment when you were on an extended trip really doesn't factor into it. I think I prefer it this way.

Jommi 6y ago

Building credit is not a thing in most european countries.

yjftsjthsd-h 6y ago
How do they handle assessing creditworthiness, then? Ex. someone walks into a bank and asks for a loan to buy a house. How does the bank evaluate that?
- sofixa 6y ago
  As another person responded - based on your income and situation ( family, age, stability of the job) and very basic loan history ( stored at the central bank, basically for the lender to know if you have outstanding debts and if you've defaulted on loans before)
- capableweb 6y ago
  A) Do you have a job? B) How long you've had the job? C) How much is your salary? D) You have family? And so on. Bunch of questions and documents back and forth until the bank is confident you'll pay back. It's funny to hear people from North America talking about the scary new Chinese "Social Points" system when they've had credit score for such a long time they don't even think about it anymore and find alternatives strange and hard to imagine.
  - throwaway201103 6y ago
    The credit score in the US is based entirely upon one's assets, income, current amount of debts, and payment history. It doesn't include what one posts on social media or what political party one votes for. At least not yet.
    - felixfbecker 6y ago
      The US credit score has nothing to do with income. In Europe if you have good income you can get a credit. As an immigrant to the US with no US credit history that is near impossible. In the US you start with the worst possible credit score and need to take on debt to prove that you are worthy to take on debt, which is crazy. As a counter example in Germany you are basically born with the perfect credit score, and you can only make it worse (e.g. by not paying back a loan).