[Brenda]

As an immigrant, I don't understand the credit-history-thing.
Where I am from, you only get registered if you DON'T pay your bills.
So if you apply for a loan, and they cannot find your name at the BKR, there is no reason to not give you that loan/mortgage. Of course your income should be sufficient.

Credit cards are not widely used, debit cards are. I used to only have a credit card for holidays, now I have 3 or 4 (that I don't use...). I think they are inconvenient, the bills are always higher than you expect.

[DerbyX]

Brenda Brenda:

As an immigrant, I don't understand the credit-history-thing.
Where I am from, you only get registered if you DON'T pay your bills.
So if you apply for a loan, and they cannot find your name at the BKR, there is no reason to not give you that loan/mortgage. Of course your income should be sufficient.

Credit cards are not widely used, debit cards are. I used to only have a credit card for holidays, now I have 3 or 4 (that I don't use...). I think they are inconvenient, the bills are always higher than you expect.

Without a credit history the banks have no way to judge you and (un)surprisingly they view the lack of information less favourably then a shoddy history. In fact some advise people to establish a credit history by securing a small loan (say a few thousand), pay a months interest and pay the whole thing off. Instant good credit.

Credit cards seem almost a given. At any university they pay students to sign up as many people as possible. They throw them at students and the students they pay earn per signatory so needless to say there is pressure. Hell I had 2 at the time and they used to say "want a third?"

Of course what these people fail to tell you is that too much credit makes you a credit risk also. A few years ago I wanted to get a 5000 line of credit. I was working and had paid off all my credit cards and only had a student loan. I was making great money and saw no reason to be denied yet I was because my "available credit" was too high. Of course that was because the banks kept raising my limit every few years (without my asking). The same bank that gave my those cards was now turning me down. Needless to say I promptly got rid of my largest card and lowered my limit on the others and reapplied. Then the pricks still said no to the LOC but they would graciously give me a straight loan at a rate 5% higher. ???? I was too much of a credit risk for a 7% line of credit but not for a 12% loan?

Long story short I left that bank and simply went to a different bank and told them the whole story and said I'd open an account and give them my business on the provision I get the line of credit. I did.

[Brenda]

$1:

Without a credit history the banks have no way to judge you

That's not how I look at it.
When you are late with paying your bills (hydro, water, phone, mortgage, loan, cell, whatever bill you have to pay) you get registered at a central point (BKR in Tiel, the Netherlands). When you apply for a loan, your bank searches their data-base for you. If you have an open bill (even for $.10), it shows up there (there are rules for that, you won't get registered within days, but they will let you know). You won't get a loan if you show up there. Your name will stay there in the red for 5 years minimum.

So they HAVE a way to judge you.

[DerbyX]

Brenda Brenda:

$1:

Without a credit history the banks have no way to judge you

That's not how I look at it.
When you are late with paying your bills (hydro, water, phone, mortgage, loan, cell, whatever bill you have to pay) you get registered at a central point (BKR in Tiel, the Netherlands). When you apply for a loan, your bank searches their data-base for you. If you have an open bill (even for $.10), it shows up there (there are rules for that, you won't get registered within days, but they will let you know). You won't get a loan if you show up there. Your name will stay there in the red for 5 years minimum.

So they HAVE a way to judge you.

I don't agree with it, I just relay the way they see it.

[Chumley]

Its good for your credit score. You just have to do it a couple of times. Then you can stop using it whenever you want.
Credit pushers trying to get you hooked.

[andyt]

Debit cards are easily hacked and you have no protection for purchases made on them. Credit cards, the credit card issuer takes the hit. Much safer. Just make sure to get one with no fee and pay it off every month.

[DerbyX]

Chumley Chumley:

Its good for your credit score. You just have to do it a couple of times. Then you can stop using it whenever you want.
Credit pushers trying to get you hooked.

I like to use them to my advantage. I pay off my card every single month without fail so I pay no interest on any purchase. I earn points which, while only a little make for a nice purchase every 2 months or so. I purchase just about everything on my card even though I have the cash and its a simple matter to pay it off online. Every couple of months I use the points to purchase a load of groceries all on their dime.

[Brenda]

Which CC do you have, Derb?

[DerbyX]

I have a PC mastercard (that is the one I use) and A low interest VISA card which I never use (for emergencies only).

[Brenda]

I have a credit union mastercard (that is used like a debit card) and a TD visa (that I never use). But both don't give me much extra's. Oh, I have a sears card too, and a HBC-thing from Zellers (got 10% discount if I bought my stuff on those cards, I've both only used them once )

Does anybody use the Scotia-bank CC they are advertising with (for??)?

[Robair]

We travel to visit family a couple times a year, so we have the TD VISA travel card where you can use your points towards anything to do with travel. Tickets for trains, planes or auto rentals and hotel rooms. Doesn't matter as long as it's for travel. Works great.
There's a yearly fee, but we still end up a couple grand ahead every year.

[redhatmamma]

I use my credit card for everything to get airmiles, but pay it off faithfully every month.

I didn't realize about the credit thing with the cards either, I've had to phone a couple of times asking them to reduce the limit and not raise it without my permission, but they do anyway.