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The ultimate life hack the government doesn't want you to know
(sh.itjust.works)
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this post was submitted on 17 Oct 2023
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Fair enough. I have a question though so apologies for my ignorance.
But how do lenders in your area determine if someone is a good borrower or an unreliable borrower without something like a credit score. I'm not saying the way the US does it is the best answer or anything. I just legitimately don't know how it works elsewhere.
Pretty sure we have some sort of database or Registry for people who don't pay back their loans. And loans do show up when for example mortgage people do a background check on you
In most European countries you're innocent unless proven guilty. That means that instead of a credit score, which is 0 by default and you have to prove to everyone that you're a good boy, we can take any loans straight away. But if a person defaults, then they get a mark in their financial profile and other lenders will be wary.