3 ms·

And most Europeans that have a credit-card need to pay them off at the end of the month. Technically they are charge cards. Unlike a traditional credit card, a

by retired 4mo ago

And most Europeans that have a credit-card need to pay them off at the end of the month. Technically they are charge cards. Unlike a traditional credit card, a charge card does not allow you to carry a revolving balance.

lxgr 4mo ago
Can we please cool it with the sweeping "most/all of Europe" assertions? This, just like credit use overall, is also highly country/region specific.
nswango 4mo ago
This is not true. Plenty of Europeans have credit cards which work exactly like US credit cards. The main difference between credit cards in Europe and in the US is that poor people can't get them here.
- lxgr 4mo ago
  Let's not pretend that predatory lending is not a thing in at least some EU countries as well, just because it takes other forms (installment payments, buy now pay later etc.), but as a general trend, I'd agree that it's much less common.
- Ekaros 4mo ago
  I was denied credit card after changing jobs. I did have some student debt, but small amount on small payment and rates were low. Also had other credit card but not high limit. Nothing in negative credit history. Did get the same card a few months later after probationary period. But yeah even without significant existing debt you can get denied in Europe.
- rsynnott 4mo ago
  > The main difference between credit cards in Europe and in the US is that poor people can't get them here. Nah, really the main difference is that the EU caps interchange (paid ultimately by the merchant) at 0.3%, whereas it can be upwards of 3% in the US for high-end cards. Without big interchange earnings, there's little reason for issuers to push credit cards, and they're less attractive to consumers (interchange pays for 'reward' schemes).
hdgvhicv 4mo ago
I have to pay it off each month unless I want the high interest rates (20%? Not sure, a direct debit clears it monthly after payday and the 1% cashback is credited each year
rsynnott 4mo ago
This is very unusual these days.

by retired 4mo ago

lxgr 4mo ago

Can we please cool it with the sweeping "most/all of Europe" assertions? This, just like credit use overall, is also highly country/region specific.

nswango 4mo ago

This is not true. Plenty of Europeans have credit cards which work exactly like US credit cards. The main difference between credit cards in Europe and in the US is that poor people can't get them here.

lxgr 4mo ago
Let's not pretend that predatory lending is not a thing in at least some EU countries as well, just because it takes other forms (installment payments, buy now pay later etc.), but as a general trend, I'd agree that it's much less common.
Ekaros 4mo ago
I was denied credit card after changing jobs. I did have some student debt, but small amount on small payment and rates were low. Also had other credit card but not high limit. Nothing in negative credit history. Did get the same card a few months later after probationary period. But yeah even without significant existing debt you can get denied in Europe.
rsynnott 4mo ago
> The main difference between credit cards in Europe and in the US is that poor people can't get them here. Nah, really the main difference is that the EU caps interchange (paid ultimately by the merchant) at 0.3%, whereas it can be upwards of 3% in the US for high-end cards. Without big interchange earnings, there's little reason for issuers to push credit cards, and they're less attractive to consumers (interchange pays for 'reward' schemes).

hdgvhicv 4mo ago

I have to pay it off each month unless I want the high interest rates (20%? Not sure, a direct debit clears it monthly after payday and the 1% cashback is credited each year

rsynnott 4mo ago

This is very unusual these days.