Part 5/8:
In Switzerland, banks do not factor in your credit history as much as they consider your current earnings and the ability to make timely payments. When I entered the American credit landscape, I didn’t comprehend how essential credit scores were for securing loans or any kind of financing. The process of securing a loan in the U.S. was more nuanced, built on the premise of assessing historical payment behaviors, which was foreign to me.
For instance, obtaining a credit limit increase is simply a phone call away for many Americans. In Switzerland, trying to increase credit limits often entails placing a freeze on additional funds rather than raising available credit. Such practices stem from a more conservative outlook towards lending and financial protection in Switzerland.