The Off Topic Topic

[Maladict]

Not if you want to build a credit score, at least in the UK.

Never heard of it, what do you need it for?

[Habbaku]

Does Europe not do cash back and credit card rewards programs? I've literally never paid a dime of interest to a credit card company, but received a few thousand dollars in cash-back rewards over the life of my cards.

But, yes, get a credit card and pay off the balance each month.

[Tamas]

Not if you want to build a credit score, at least in the UK.

Never heard of it, what do you need it for?

It is supposed to be used by banks to determine how credit-worth you are. Supposed to help with your mortgage terms.

[Tamas]

Well, that's what I am planning to use for in roughly 70 years from now, when we'll be able to afford a property.

But the entire British consumer economy since to tick along on credit so it may be even more important to othe folks.

[Syt]

It works in reverse in Germany/Austria. In general you'll be deemed credit worthy. If you want to buy something on an installment plan (say, a car), or rent an apartment you may have to provide proof of income.

If you fail to meet your obligations, it will be entered in a central register which will affect you negatively in the future (though you can of course work your way out of that).

[Maladict]

It works in reverse in Germany/Austria. In general you'll be deemed credit worthy. If you want to buy something on an installment plan (say, a car), or rent an apartment you may have to provide proof of income.

If you fail to meet your obligations, it will be entered in a central register which will affect you negatively in the future (though you can of course work your way out of that).

Yes, same here. Taking out credit can only affect you negatively, never positively.
No need to entice people to take out loans, as far as I'm concerned.

[garbon]

Does Europe not do cash back and credit card rewards programs? I've literally never paid a dime of interest to a credit card company, but received a few thousand dollars in cash-back rewards over the life of my cards.

But, yes, get a credit card and pay off the balance each month.

They do and I buy everything on credit (took a bit for them to let me have cards where I could collect things but finally managed this year) and then pay off balance each month like I did in US.

[Maladict]

It is supposed to be used by banks to determine how credit-worth you are. Supposed to help with your mortgage terms.

Interesting. I suppose it does give some idea of how responible people are.
But never buying anything on credit should get you a really good score.

[Tamas]

It is supposed to be used by banks to determine how credit-worth you are. Supposed to help with your mortgage terms.

Interesting. I suppose it does give some idea of how responible people are.
But never buying anything on credit should get you a really good score.

I think the reasoning is that then you are an unknown. They can have no idea whether you bother repaying or not.

Which I guess is not a big deal in a society that is debt-averse to begin with (Germany, or Hungary) but in a society where being in debt seems par de course, I understand they look at lack of intel differently.

[Grey Fox]

Around here, holding a credit card also usually gives you a kind of insurance. Travel insurance is the most common one.

[garbon]

It is supposed to be used by banks to determine how credit-worth you are. Supposed to help with your mortgage terms.

Interesting. I suppose it does give some idea of how responible people are.
But never buying anything on credit should get you a really good score.

I think the reasoning is that then you are an unknown. They can have no idea whether you bother repaying or not.

Exactly so definitely a negative.

[Malthus]

It is supposed to be used by banks to determine how credit-worth you are. Supposed to help with your mortgage terms.

Interesting. I suppose it does give some idea of how responible people are.
But never buying anything on credit should get you a really good score.

Apparently, using credit and paying it off promptly is the key. Not that this matters much to me. 

I pay for everything with a credit card now - not only to get points, but to avoid the necessity of handling cash and coins. Plus it keeps a handy record of what I've spent money on. 

I have a system set up that automatically pays the minimum payment every month, in case I forget; but I usually pay off the entire balance even more frequently. Paying credit card interest is something that should never happen.

[Tamas]

Around here, holding a credit card also usually gives you a kind of insurance. Travel insurance is the most common one.

Well I don't think that's usual here, but you did remind me one advantage of credit cards (in the EU at least): the credit card company holds some level of responsibility for the transaction. So for example I bought my car using my credit card (maxed it out back in the day!) because if the purchase turned out to be fraudalent (in this case, the used car not being traffic-worthy or such) then I could in theory at least, turn to the credit card company and have them refund if I couldn't convince the dealer.

[Threviel]

Around here people mostly use debit cards. I hav a credit card, but I only ever use it for emergencies, say if my bank went under or something and I have never used it. Instead I have a Visa/Mastercard connected to my wage account. So I get all the benefits of insurance and so on, but I never pay on credit.

[Tamas]

Around here people mostly use debit cards. I hav a credit card, but I only ever use it for emergencies, say if my bank went under or something and I have never used it. Instead I have a Visa/Mastercard connected to my wage account. So I get all the benefits of insurance and so on, but I never pay on credit.

Yeah people have debit cards here as well.