Credit in Europe

cesposito · #1 (**permalink**) 15th July 2008, 11:59 PM

Hello all! I am new to the forum, and wanted to say how great I think it is. You've all contributed very helpful information.

I have a question about moving to Europe. I was wondering how credit works over there. For example, if someone moves from the States to EU does their credit follow them or do you have to start your life in the new country with no credit?

Thanks in advance for your help

Cat

Bevdeforges · #2 (**permalink**) 16th July 2008, 06:10 AM

Hi and welcome to the forum.

OK, the credit situation varies a bit from country to country. But basically your credit record in the US is lost for the ages once you make the move. The UK system is probably the most like the US - credit reports, etc. - but AFAIK it's based solely on your UK experience. When you first arrive, you can sometimes use a "letter of introduction" from your bank in the US to help establish initial credit lines.

On the continent, credit is a rather different beast. In France, for example, the banks are pretty strictly regulated in terms of what sort of loans they can make to customers. Credit cards function more like what you know as "debit cards" in that you're limited to the balance in your account and there isn't the option of rolling over charges to the next month. It's a pain at first to get used to, but boy it keeps you out of the sort of trouble so many Americans seem to be in lately!

Cheers,
Bev

cesposito · #3 (**permalink**) 21st July 2008, 04:30 PM

Thanks for the welcome!

That's actually great to hear. Although it's difficult to start credit all over again, I like the idea of not being able to spend more than you have. I'd much rather raise my kids in that sort of environment you know?

What country do you live in?

Bevdeforges · #4 (**permalink**) 21st July 2008, 07:48 PM

Quote:

Originally Posted by cesposito

Thanks for the welcome!

That's actually great to hear. Although it's difficult to start credit all over again, I like the idea of not being able to spend more than you have. I'd much rather raise my kids in that sort of environment you know?

What country do you live in?

Oops, thought it was obvious - France.

It's not quite a matter of starting over again. It depends a bit on your bank and the banking system in the country you're in. When I moved to Germany (from the US) I was controller of a small plant. Opening an account in the same bank where the plant had its accounts was a real ego trip. The bank manager fell all over me - so a "letter of introduction" from your employer isn't a bad idea, either.
Cheers,
Bev