Yeah that's not lost on me either. Part of the double-edged sword I suppose. On the plus side it helps me build credit because I pay it off every month and it grants me certain luxuries from time to time that I wouldn't normally be able to afford.

clean history wont prevent you from getting a loan in the usa, it just prevents you from getting a big loan at a low interest rate. Smaller amounts won't be much of a problem if its a clean. Also, bad marks are removed in time just like anywhere else.

I think the reason why clean reports may be a little bit more of an issue in the us than elsewhere is because of how easy it is to get an kind of loan or credit and how uncommon having a blank credit score can be as a result. Between student loans, credit cards, car loans (atleast cheaper loans for used cars) etc its pretty unlikely, by the time someone goes to try and take out a big loan, like say for a house, that they would have zero credit history or not have someone like a parent cosign who also has zero history (if someone cosigns it goes on both people's credit history) And, businesses, looking for any excuse to avoid risk on an investment, would be less likely to give a big loan to someone with no history when there are so many people with good credit history to still make plenty of money.

All that said, credit cards seem quite a bit less common than they used to, especially since debit cards became a thing. Most people i know, myself included with credit cards are either for business expenses that are paid off immediately, or for the extra safety provided by the ability to charge back on purchases that debit cards don't often provide.

I don't disagree with you, I'm just saying how it is here and the reasons why Americans use credit cards so much.

I have major problems and concerns with how credit scores work here, as well as the mysterious and flawed algorithms that determine them. The way credit scores are calculated sometimes incentivizes bad credit behavior, like maximizing your total available credit and keeping lines of credit open even when you don't want/need them anymore. It's deeply flawed. You're right about that.

However as just a matter of fact, in America at least, if you show up to your bank asking for a $500,000 USD home lone (which sadly is the average house cost where I live on the west coast), they will perceive a total lack of credit history as a big question-mark, and a sign of uncertainty and risk. I've known people who struggled to even open a credit account in their late 20s simply because they didn't already have an existing credit history to point to, which goes without saying is a total catch 22.

In other words, it's definitely a flawed system, but one that many of us have basically no choice to participate in. I have a good credit score because I have almost always paid for just about everything on my credit account, and then pay off the entire balance each month (sometimes twice per month). But like you said, a lot of people get into real problems with credit card debt because they either never learned how to responsibly use one, or they simply struggle to live within their means based on how little they make.

Consider two potential creditors:

• Person A has no credit history at all.
• Person B has had a credit card with a $20k limit for ten years, generally has a balance of less than $2k, and has never missed a payment.

Can you see how B is a less risky client than A? A is essentially an unknown risk, but B has demonstrated the ability to manage their debt. A could still get, for instance, a car loan, but likely not a mortgage. And B will get a lower interest rate.