What metrics do they use there to determine your loanworthiness?
loan/credit application is mostly based on your income (you can maybe borrow up to 4.5-5x your gross income for a mortgage), how certain your income is, for example whether you have a temporary or permanent contract, and if there are no red flags in the last few years.
It also sounds to me that the difference between how we live here and the American system (I feel most people have loans for stuff in the 1–10k €/$ range in the US?) is a couple of months of living a bit more frugal, and the result is a lifetime of profit because you avoid all this interest everywhere.
Here it is common (and recommended by the government and banks) to have a 5k buffer. It could be my bubble but most people I know maintain that buffer. It pays for a new washing machine or even a new (crappy) car if needed.
Is it my view of the US based on Netflix that everyone has loans for the smallest of thing (like TVs) or is it really true?
There is much more access to credit in the US, most Americans use that credit a moderate amount to smooth cash flow for bumpy purchasing.
It is certainly the case that there are outliers who overuse credit, and many people who abhor credit like it sounds like you do.
One of the biggest differences between US borrowing and the rest of the world is that bankruptcy is very very easy to access, has very little stigma, and clears out most debts.
This makes the perceived costs of carrying a large debt load quite different.