Discussion » Beijing Life » How does credit work in China?

  • SoulCreative Web Studios
    SoulCreative Web Studios wrote:

    Hey everyone,

     

    I am wondering how credit works in China? I have heard that China does not follow the credit rating like USA does. How do people get car loans, and house loans then? Is that even possible?

     

    Thanks,

     

    Daniel Lessor

  • Minger
    Minger wrote:

    China's a little bit behind in these matters... I'm sure it's now possible to get a loan for a car, but I'm not sure how it's secured. I doubt it's done very often.

    House loans are secured by the apartment, so there's not much of an issue with credibility. The down payments are 30% I believe, so presuming that the flats aren't over-valued by more than 30%, the bank doesn't risk losing money if the buyer defaults. Proof of income is also required I believe, but this is might be forged, just like in the states. "Write your income here". "Ok, I make $10,000 a year." "$10,000 isn't enough to get this loan, are you sure you don't make $100,000 a year? We're not going to verify it, you know." "Uhm.. I make $100,000 a year?". "Great! Loan approved!"

  • 叮噹叔叔 (令狐叮噹)

    ...

    By the way ... personal loans to foreigners are next to impossible, even if not non existent ...

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