You know, like “always split on 18,” or “having kids is the most rewarding thing you can do in life.”
What’s that one bit of advice you got from a trusted friend that you know deep, deep down would just ruin your thing?
You know, like “always split on 18,” or “having kids is the most rewarding thing you can do in life.”
What’s that one bit of advice you got from a trusted friend that you know deep, deep down would just ruin your thing?
The entire “credit rating” system is totally insane and dystopian for people outside the US. Where I am from, we only ever register bad credit, not good credit. If you want to buy a house and need to get a mortgage they can ask for your credit rating. But that only shows how much your current obligations to other creditors are, and whether you have had trouble paying them. And you only cartain obligations are allowed to be shown on such a report.
In my country, someone with no credit card history whatsoever is in a better position to get a mortgage than someone who has a credit card and pays it off every month. The fact that the US is the reverse is just mad.
There’s probably a healthy middle ground. We shouldn’t be handing major loans to people with no experience with credit either
We absolutely should. As long as they have enough stable income to support it. Rough guidelines in The Netherlands is that you can get a mortgage for about 4-5x your yearly income (subtract any other loans like credit cards, phone contracts or cars), and for no more than the house is actually valuated at (unless you’re going to remodel, then you can borrow for the estimated value after it is done).
The test is to see if you can handle having access to credit you don’t use. Can you operate within the current financial system without going bankrupt?
It is also the reason why recent inquiries on credit can also tank a credit score. You’re riskier to lend to because you are trying to get more debt than you were used to.