this post was submitted on 25 Jul 2026
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it's binary. you either get loans or you don't. and your actions with regards to how you pay or how many loans you have or if you do or do not have a credit card... none of that changes your situation.
it is functionally different, because it's not something people here have to think about.
I'm still not following. You said "we just mark if there's any default on earlier loans and then evaluate on individual basis (in-person) if so", but now you're saying "your actions with regards to how you pay or how many loans you have or if you do or do not have a credit card... none of that changes your situation".
So are you evaluated on past behavior or not? If you are, how is that different than a credit report? If not, how is it determined if "you (either) get loans or you don't"?
It's also "not something people here have to think about" here also, you might check it every now and again to make sure there isn't anything you don't recognize that might indicate identity theft, but that's it, unless you get turned down. I expect people where you are would also think about it if they're turned down.
so i might be misunderstanding credit scores, but my impression has always been that what makes them go up or down is seemingly arbitrary things, like if you don't have a credit card or you don't use it you get a low score, or if your cash flow is low because you're frugal you can't build a good score, or if you're with certain banks or live in certain areas that automatically makes your score go up slower and down faster.
here, the only thing that's checked is "do you have a payment default". if no, you're good. if yes, you are usually good as well, because that can happen to anyone. if you have multiple, then you get to talk to the bank to explain why this time is different.
so i guess your past actions do matter, but only in extreme cases. it's not a whole spectrum of mediocre scores where you get bad rates.
the fact that we have a government-backed debt restructuring scheme for individuals also plays in to the rarity of the cases. if you can't handle your debt, and you don't have stuff to sell off, you can enter into a contract with the state where they hold all money you make for five years, only giving you the minimum required to live, and then wipe your debt.
You're only misunderstanding them because financial literacy is so poor that there are widely held, but ridiculous, theories on what makes them move. And you have no reason to know yourself, you just hear the misinformation.
It's pretty straight forward. When you're 18 and obviously don't have a history, any credit card you can get will have a low limit and you will probably need a co-signer for something like a car loan. After you demonstrate that you use these things responsibility, your limits go up, you qualify for things on your own, and your rates go down. Your credit report is just a list of these things and your score is just so lenders don't have to read the whole thing. But they can: before medical debt was removed from these it was common for a lender to see a low score, look at why, see your only black marks were medical related, and issue an approval anyway. Many big issuers even get their own special scores tailored to their business so they don't even have to do things like that.
We don't have gov. sponsored restructuring but we do have a court process called bankruptcy, and there are a couple different kinds, where you can get debt beyond your ability to pay wiped out, with some restrictions. This disappears from your credit report after seven years, but it doesn't mean you can't get credit in the meantime, just less and higher rates.
It's nothing more than an objective history of your credit usage so approvals aren't subject to the whim of the issuer.
yeah see the functional difference then is the change in rates depending on the score. here the base rates need to be publically visible and lenders change them based on a "steering rate" set by the central bank in response to things like inflation or cost of living.
while we do have credit reports, the only things visible are defaults. if anyone wants more info they need to ask you for consent.