A good credit score can help you in your life
It is true that in Europe we do not have that number. Or at least, it is not as visible as in the US, but trust me that the banks know who the good and bad creditors are.
For those who do not know what it is
A credit score is a number used to predict how likely you are to make financial commitments, such as paying off a loan.
Countries like the U.S. and Canada base their lending system on it.
For example, a bad credit score can make it harder and more expensive to get a mortgage.
The credit score already exists in the UK, Germany, Austria, Holland, so in many countries it is already applied.
For countries like Italy you just need to be a good payer, that’s all. Clearly if you have a credit card or loans this “improves” your score. Unfortunately it is not a clear figure as in Anglo-Saxon countries.
Personally, I believe that the credit score should be expanded in all countries in order to be more easily recognizable by those who offer us a service.
I’ll give you an example:
The homeowner could consult a database and see how the future roommate behaves and rationally decide who to give the house. Those who want to risk it can also trust people most at risk. While defaulters should demonstrate their good intentions by giving, for example, an extra month’s deposit.
Zero debt and creditworthiness
Ok this is a thorny issue.
How can I improve my credit reputation if in other posts I said that I don’t have to have debt because they are liabilities.
Well I didn’t say everything in the previous post.
Debts don’t always lead to liabilities, sometimes they save money.
Now I’ll explain, with examples that can help you improve your creditworthiness.
- Credit cards (I think I’ll do a detailed post on them in the future) often offer discounts if you use them. If you pay back the expense at the end of the month then they will not charge interest.
- Home mortgages can often be used as a tax shield to pay less taxes. This particular changes from state to state so I advise you to learn more