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Ah yes, the credit score. I remember a friend explaining that to me when I visited her in the US. It shocked me! This does not really exist here, and I'm prett

by mercer 12y ago

Ah yes, the credit score. I remember a friend explaining that to me when I visited her in the US. It shocked me! This does not really exist here, and I'm pretty sure that's the case for most of Europe. I'd say at the very least most middle-class-and-above children are strongly imprinted with the concept that debt is bad. Furthermore, I suspect that at least here in The Netherlands there are pretty strong regulations on credit-style business ventures and advertising (or buying with monthly payments). Basically, our approach is that if you can't pay for something, you shouldn't buy it. Among my friends, whatever their personal situation, most don't even have a credit card (and I'm almost thirty!). And when they do, it's usually specifically for buying stuff that you can't pay for with a debit card. In my case, for example, I was pretty quick with a credit card because I was 'internet-savvy', but I specifically got a student version that has a -1000 euro limit and that automatically resets to 0 every month.

SilasX 12y ago
I find it hard to believe that Dutch lenders don't quantify credit risk into something that's effectively a "credit score". Did you mean that there's some particular aspect of credit scoring as it works in America that doesn't happen in the Netherlands?
- mercer 12y ago
  They do look at your financial situation if you want to make a loan, if that's what you mean. I was responding primarily to "In the US, if you avoid debt at all costs, you get a rude awakening." As far as I can tell, that's not the case in Holland. It's better to not have any kind of debt if you get a loan. Which seems like a sensible approach to me. (but I am not well versed in all this, so if you really want to know I suggest you ask a Dutchman who has had experience with loans other than big student loans!)
  - SilasX 12y ago
    >I was responding primarily to "In the US, if you avoid debt at all costs, you get a rude awakening." As far as I can tell, that's not the case in Holland Alright, but I don't get why you characterized that state as "Ah, the credit score ... that does not really exist here". (Though I was mainly perplexed at the implication that they're no counterpart to it -- i.e. a quantification of the credit risk, even if under a different name.) And for secured loans, they do look at your situation in the US. It's just that commercial banks use the score as a filter before they bother with that process. If you have no credit (but are otherwise responsible, etc) then credit unions will still look at your situation even despite lacking a credit history. (It's nevertheless frustrating that official what's-my-score sites will say you have a high score, even as every lender tells you, "Um, no you don't.")
- dagw 12y ago
  In Sweden your "credit score" (as an individual) basically consists of a list of loans you have defaulted on. No defaults and you score a perfect 0. There is no way to see if you've never had a loan before or if you've had lots of loans and never defaulted.

by mercer 12y ago

SilasX 12y ago

I find it hard to believe that Dutch lenders don't quantify credit risk into something that's effectively a "credit score". Did you mean that there's some particular aspect of credit scoring as it works in America that doesn't happen in the Netherlands?

mercer 12y ago
They do look at your financial situation if you want to make a loan, if that's what you mean. I was responding primarily to "In the US, if you avoid debt at all costs, you get a rude awakening." As far as I can tell, that's not the case in Holland. It's better to not have any kind of debt if you get a loan. Which seems like a sensible approach to me. (but I am not well versed in all this, so if you really want to know I suggest you ask a Dutchman who has had experience with loans other than big student loans!)
- SilasX 12y ago
  >I was responding primarily to "In the US, if you avoid debt at all costs, you get a rude awakening." As far as I can tell, that's not the case in Holland Alright, but I don't get why you characterized that state as "Ah, the credit score ... that does not really exist here". (Though I was mainly perplexed at the implication that they're no counterpart to it -- i.e. a quantification of the credit risk, even if under a different name.) And for secured loans, they do look at your situation in the US. It's just that commercial banks use the score as a filter before they bother with that process. If you have no credit (but are otherwise responsible, etc) then credit unions will still look at your situation even despite lacking a credit history. (It's nevertheless frustrating that official what's-my-score sites will say you have a high score, even as every lender tells you, "Um, no you don't.")
dagw 12y ago
In Sweden your "credit score" (as an individual) basically consists of a list of loans you have defaulted on. No defaults and you score a perfect 0. There is no way to see if you've never had a loan before or if you've had lots of loans and never defaulted.