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No... we very much have a "credit score." I'm American and don't like credit cards. I have a shockingly low credit score simply because I choose to pay using
by david927 4y ago
No... we very much have a "credit score." I'm American and don't like credit cards. I have a shockingly low credit score simply because I choose to pay using debit cards and I don't take loans. I never miss a payment and I earn a very good living but you wouldn't guess that based on my credit score. In Norway my credit history would be golden; it's the opposite here.
Edit: I stand corrected. Thanks, I understand now.
- gruez 4y agoNone of what you said contradicts the parent post, which is simply refuting the claim that we have some sort of "official" credit score. In reality we have credit history, and various data vendors apply your history to their models to determine a rating for you.
- bee_rider 4y agoYou have a credit history, which multiple companies will apply their algorithms to to get a score. The algorithm will take into account things like "this history doesn't have a lot of debt, so we don't know if they repay," and generate a lower score.
- waynesonfire 4y agodoesn't take much to get some history.
- astura 4y agoYou don't even have to actually use revolving credit to build credit history - it's good enough to apply for a credit card then shred it when it comes. "Not running up the credit card" is significant points in your favor. They'll likely close your account for inactivity after a few years, and the account stays on the credit report for a decade after it's closed.
- jedberg 4y ago> because I choose to pay using debit cards This is not a very smart way to do things. You'd be much better off getting a credit card with no fees and rewards points, buying everything with that, and then paying it off every month. You'll have stronger legal protections on your purchases, and you'll earn reward money without paying any extra. You can even pay off your bill with the reward points. And as a bonus you'll build up your credit score, which can affect you in lots of ways unrelated to loan rates.
- david927 4y agoI know but I hate the system and don't want to be bullied into participating.
- jedberg 4y agoI mean, you do you, but you're really only hurting yourself here. You're literally throwing away money to stick it to "the system" which doesn't care.
- kubanczyk 4y agodavid927 is not hurting himself, he's simply paying a bit more for a setup which prevents him from spending money he doesn't have. Understandable approach.
- deleted 4y ago[deleted]
- zhynn 4y agoI wish i could afford to do what you are doing, but I can't survive in 2022 USA and support my family without access to credit. It is maybe possible, but it is wildly impractical. And the ability to borrow helps to smooth out the turbulence of life (unexpected emergencies or broken things). When I was in my 20s my credit was so bad I couldn't get loans and when life threw a curveball, it could take a ton of energy to sort out how I was going to deal with it. Now I just dip into the credit that I have available to deal with the situation. But I hate it. It feels insane to me that we as citizens don't have more regulatory control over credit systems. I envy you, but I also know that what you are doing is not practical for me.