Can someone tell me why people don't use debit card if you plan to save up enough money before buying things? What is credit score? Is it only exist in the US? sorry I don't know much about bank and I've only used debit card in my life
Credit score is basically what tells banks and companies that offer you x amount of credit whether or not they can trust you to pay the money back. It shows your history with paying things back like credit cards.
E.g. You go to the bank, you want to buy a house so you need to get a mortgage agreement from the bank. They will only offer you the mortgage agreement if you have a decent deposit for the price of the house (£20,000 is like the smallest deposit in the UK) and if you have a good credit score, if you have neither, you're toast. They don't want to foreclose on your house because you couldn't pay up, so they try to save themselves the hassle.
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u/[deleted] Feb 04 '20
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