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You would be surprised how many 1st world countries operate just fine while having no such thing as individual credit ratings by credit bureaus.
by Mordisquitos 3y ago
You would be surprised how many 1st world countries operate just fine while having no such thing as individual credit ratings by credit bureaus.
- staringback 3y agoYou still have a credit rating, it just isn't being shown to you.
- Mordisquitos 3y agoIf you count "there is no record of this person making a late payment or defaulting on a debt" as a credit rating then sure, I do have one. Other than that, the only other information a lender will use to decide whether to grant me a loan and under which conditions will be information that they will ask me to provide, such as age, proof of employment situation, and my last 3 payslips.
- hn_throwaway_99 3y agoI mean, not really. Here is an overview of how things work in some different countries: https://finmasters.com/what-countries-have-credit-scores/ https://finmasters.com/what-countries-have-credit-scores/ Absolutely, there are significant differences, and some are quite similar to us (Canada and the UK) others differ more significantly (France and Spain). But they all essentially have ways to record any black marks from your payment history and use that to determine your credit worthiness for new loan applications. This is exactly what I meant in my first paragraph - yes, it's absolutely the case that the US implementation has tons of problems, and I think it's fine to say these should be public or quasi-public entities (e.g. only the the country's central bank has this info, like in France), but in general, all of these countries use some sort of analogous system to credit bureaus to determine your relative risk profile.