no credit
Thursday, March 29th, 2007Most Germans buy thier cars with cash. This includes new cars. Even if we are talking about $25,000. The idea of financing a car is not very popular. I’m not sure why this is, but monthly payments are avoided like the plague. Only homes are financed. This explains why so few Germans have credit cards. As far as I know, there is no such thing as a credit rating. When you apply for a credit card, the credit card company calls your bank to verify your income. Your credit limit is set depending on what you deposit each month. Needless to say, the mailbox is not overflowing with credit card applications.