jgombos

After living in Belgium for ~8 months, I applied for a credit card with only a small 2k limit, and was denied. Do I have any rights at this point, like a right to know why I was denied, or a right to a free credit report? I suppose it's a bad time for an American to ask for credit. The bank is "International Card Services" and this was their response (void of rationale):
How do Europeans get to a point of qualifying for credit? Is it working against me that utilities are included in my rent?

Is there some way of linking a US credit record to a Belgian one?

davesmithsrm

I was told by Fortis that you have to be a resident (with resident card) for at least 12 months minimum before you can get credit....

jgombos

Thanks for the feedback. That could indeed be my issue, since International Card Services is owned by Fortis.

Ray51

Typically , IMHO : European countries are nowhere near as credit-addicted , as the Anglo-Saxon ones ;
( the toxic loans were not invented here , but advocated and fought for in the U.S. , by the then-advocate Obama , according to "you tube" )
so , maybe your problem is a very little 'un ?

gs.gecko

I don't think it has that much to do with you but rather with your countrymen. Too many of the early settlers came over took out credit and the buggered off without paying so getting credit with a US paasport is going to be difficult. In fact getting credit as a non-belg in Belgium is difficult. They just are only interested in lending to anyone who doesn't need to borrow....

jgombos

I did some checking, and here's what I found: nationality-based credit discrimination is in fact illegal in Belgium. However, the law has no teeth. The bank does not have to state why they deny credit (and in fact they don't state why), and the burden of proof is placed on the applicant. Obviously the bank is not going to say they denied credit to an applicant because they're American. So because the banks don't have to justify their denials, there's no pressure for them to comply with the law.

BTW, I don't mean to claim they are discriminating against my nationality. Although most people I talk to seem to think they would, davesmithsrm may indeed be correct; that I simply have not been here long enough.

In any case, I will say that Fortis' excessive fear of reasonable calculated risk is costing them. They had in their possession proof that less than a month of income on an applicant exceeded the full credit line being requested. And even though they had the option to grant an even lesser credit line, they denied the application outright. Moreover, this is a country where revolving credit on credit cards is illegal, so the risk of default is even lower. And because there is no revolving credit, they would be able to start collecting by way of garnishments and seizing assets very quickly in the worst case. Presumably their lack of competitive business acumen is what put them at risk for bankruptcy recently. I intend to close my current account with them, as I would rather not feed a bank as they deny me a credit card.

gs.gecko

Good for you - vote with your feet and leave them in your wake.
Don't get me started on Fortis bank bunch of muppets they are.... I left them lat year 2 weeks before their melt down occurred . They had given access to a third party to my current account by way of an unauthorised direct debit. When I asked to see a copy of the signed mandate they told me I had to get it from the 3rd party who of course didn't have one so I went back to complain to Fortis at which point I was told that if I wanted to complain I had to go to the ministry of economic affairs ..... yeah right and I speak the lingo fluently - I immediately moved my accounts after being there for more than 10 years and they didn't give a toss.... that's how much they care about their customers.
I moved to deutsche bank who seem much more switched on than Fortis . You will find that Belgium is quite backward in terms of financial and insurance matters compared to what you might be used to in other western economies. Just look how many taxis won't accept credit cards .... that's a good indication of how cash is king in the economy.