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Here in the Netherlands we have a simpler system. Any non-trivial credit such as your mortgage, car loans and student loans are registered centrally at an inst
by fleddr 4y ago
Here in the Netherlands we have a simpler system.
Any non-trivial credit such as your mortgage, car loans and student loans are registered centrally at an institute called the BKR. When you regularly fail to make payments on these loans, you may be marked with a negative rating.
So it's fairly binary information: good or bad.
Over here, day to day payments are done with debit, so no detailed "small credit" history is recorded at all.
In my case, this BKR institute has a single entry, my mortgage, and soon none at all. So I'd then have no registered credit at all, and thus also no score.
...which is celebrated by creditors. A complete lack of data is interpreted as you being the most financially sound person possible. This high trust culture doesn't come out of nowhere. Culturally, payment discipline overall is very solid as we have somewhat of an anti-loan culture (don't live beyond your means). Further, you're not going to get away with defaulting on loans, there's no mercy for it here.
- wang_li 4y agoIn the US a credit report has things like you haven’t paid on this bill for 30 days, for 60 days, for 90 days. Or your account was sent to collections. And monthly balances on your debts. And how much revolving credit you have. Not sure exactly what you mean by small credit, but your daily purchases or spending is not on your credit report. It’s largely similar to what you describe but the information, good and bad is kept for 7 years.
- fleddr 4y agoI was under the assumption that in the US, a lot of people pay with credit instead of debit. If they pay with credit, I would assume this adds to their credit history and score? Is that not true?
- astura 4y agoIt shows up as a revolving line of credit on your credit report. It shows your credit limit and the balance on your last bill.