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0 pointsdjmobley5y ago0 comments

Are there really no free credit cards available in your country?

In many countries paying with a credit card gives you greater legal and fraud protection. Also helps build your credit rating.

0 comments

Legogris5y ago

I'm curious if there's anywhere else outside the US where "building your credit rating" by accumulating debt history from e.g. credit cards is a thing and makes a difference. I haven't heard it mentioned as a US-specific thing, but I've also only ever heard Americans talk about it.

quietbritishjim5y ago

It is true in the UK too, although I doubt it would make much difference when applying for a mortgage, but maybe for a small loan.

djmobleyOP5y ago

In the UK it is absolutely a thing. Why would it not be a thing?

pwinnski5y ago

The cost of rigorous consumer protections is sometimes monetary.

I have this discussion with European friends regularly: No, I don't automatically get a three-year warranty on everything I buy. I don't even want such a thing, sometimes. And in return I pay much less for everyday items.

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Legogris5y ago

I have not heard this be a factor when people get mortgages or loans. So "because it doesn't matter".

But apparently in the UK it does! So if I understand right, not having a history of debt can be a problem when getting a mortgage or loan simply because lack of data for them to make any assessment?

Scarblac5y ago

If anything having a credit card works against your credit - you could decide to take on debt at any moment, so they assume you already have that debt, and have less capacity to take on more.

j / k navigate · click thread line to collapse

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Legogris5y ago

quietbritishjim5y ago

It is true in the UK too, although I doubt it would make much difference when applying for a mortgage, but maybe for a small loan.

djmobleyOP5y ago

In the UK it is absolutely a thing. Why would it not be a thing?

pwinnski5y ago

The cost of rigorous consumer protections is sometimes monetary.

1 more reply

Legogris5y ago

I have not heard this be a factor when people get mortgages or loans. So "because it doesn't matter".

But apparently in the UK it does! So if I understand right, not having a history of debt can be a problem when getting a mortgage or loan simply because lack of data for them to make any assessment?

Scarblac5y ago

If anything having a credit card works against your credit - you could decide to take on debt at any moment, so they assume you already have that debt, and have less capacity to take on more.

j / k navigate · click thread line to collapse