In my country you have to show 6 months of bank account history for all your accounts. You can have zero credit history and get a mortgage, they only really care what your income and regular expenses are. No credit score as such. If you’ve never applied for a loan, nobody but your own bank and possibly the government would know what your finances are up to.
How does a credit score help? In my country we have a register for things like cars than you can see if any debt owed on it, so I guess tracking is on the asset side. Otherwise, wouldn’t it just be fraud and the banks would take legal action? That would still produce a record that could be checked too.
Welcome to criminal offense? You get sued, plain and simple. Bank or lender sues you, and either you cooperate or your shit gets taken and if it’s still not enough, you get part of your pay docked each month for x time.
In poor people cases, that goes down to minimal pay (exceptions happen if needed, for example caring for elder I believe).
Rich people have enough shit for taking most of the time that it gets resolved at first step.
Bailiffs can place an arrest their income streams and bank accounts and sell their cars and homes.
Also there’s a debt registry you can be put into if you’re like 3 months overdue and don’t come to some kind of agreement with whoever you borrowed from. Usually the banks are pretty lenient if you go to them with a proposal to pay off the debt in small installments because it’s less messy than going to court and getting a bailiff appointed
In my country you have to show 6 months of bank account history for all your accounts. You can have zero credit history and get a mortgage, they only really care what your income and regular expenses are. No credit score as such. If you’ve never applied for a loan, nobody but your own bank and possibly the government would know what your finances are up to.
Without a credit score, how does your country deal with wealthy people repeatedly borrowing money and not repaying it?
How does a credit score help? In my country we have a register for things like cars than you can see if any debt owed on it, so I guess tracking is on the asset side. Otherwise, wouldn’t it just be fraud and the banks would take legal action? That would still produce a record that could be checked too.
Welcome to criminal offense? You get sued, plain and simple. Bank or lender sues you, and either you cooperate or your shit gets taken and if it’s still not enough, you get part of your pay docked each month for x time.
In poor people cases, that goes down to minimal pay (exceptions happen if needed, for example caring for elder I believe).
Rich people have enough shit for taking most of the time that it gets resolved at first step.
Bailiffs can place an arrest their income streams and bank accounts and sell their cars and homes.
Also there’s a debt registry you can be put into if you’re like 3 months overdue and don’t come to some kind of agreement with whoever you borrowed from. Usually the banks are pretty lenient if you go to them with a proposal to pay off the debt in small installments because it’s less messy than going to court and getting a bailiff appointed
Ok, so in your country the debt registry functions as a credit score
Yes but it’s pretty difficult to end up there and most people never do. Meaning all our data is safe.