What is Credit Rating

[Sexzity]

Could anyone explain how Credit rating works in the US

If we in Europa dont pay ours bills we are being listed as shitty payers = 0 credit.
But we cant be listed before we have got a summons

[cool1g]

assuming you mean personal credit, there are 3 private companies that rate your credit on a scale from around 300 to 900 or so....if you score above 720 on this scale you pretty much get approved for anything at the best interest rates if you have the income. Below this level, your interest rates begin to increase and your acceptance level will drop.

if you don't have any credit cards, car payment, etc., you have no rating at all. if you pay your bill late, your rating will be at the low end of the scale, and you will have to pay higher interest rates on borrowing for money, you will be able to borrow less and may get turned down.

there is a simialr thing for companies called your D&B rating - same idea.

hope that helps!

[Sexzity]

Thanks.
That most the reason so many have CC in US.

[-HF]

Originally posted by cool1g
if you don't have any credit cards, car payment, etc., you have no rating at all.

do i get you right there, if i was a stingy ass trying to avoid fees by any means and pay everything cash or straight into the seller's bank account, i have shitty credit rating although i could be Bill Gates?

[cool1g]

HF - no you wouldn't have a shitty credit rating, you'd have NO credit rating....and since credit is in most cases automatically decided by computers nowadays, since you would have no rating you would be rejected on that basis. that's one big downside of paying all cash and not at least getting a credit card or car loan.

[polish_aristocrat]

Originally posted by -HF



do i get you right there, if i was a stingy ass trying to avoid fees by any means and pay everything cash or straight into the seller's bank account, i have shitty credit rating although i could be Bill Gates?

Paying in cash is not popular in the States ( money laundering etc ).
In the EU there is also going to be implemented a rule saying that you cannot pay with cash for something worth more than 10k EUR.
But in the US, paying with $200 cash in the supermarket looks suspicious

[raceman]

Credit ratings are the key to everything in the UK but the score values are different than the states 60 to 250

I had a friend that regulary earned £250,000 P/A paid off his mortgage early, had no credit cards and shit loads of money in the bank, paid cash for his cars, always expensive BMW's and he applied for an "AMEX" card, they turned him down because he had no credit history.

The UK is now run by computers and credit scoring, fucking painfull


RACEMAN

[polish_aristocrat]

Originally posted by raceman
Credit ratings are the key to everything in the UK but the score values are different than the states 60 to 250

I had a friend that regulary earned £250,000 P/A paid off his mortgage early, had no credit cards and shit loads of money in the bank, paid cash for his cars, always expensive BMW's and he applied for an "AMEX" card, they turned him down because he had no credit history.

The UK is now run by computers and credit scoring, fucking painfull

that sucks