If you lose badly enough at credit that you end up declaring bankruptcy, maybe homeownership or car loans aren't for you. Just a thought.
There's also the notion of rent - people who've always had good credit don't really know how different renting is like for people who have bad credit. I came to this country a few years ago with zero US credit rating, and even with a high salary, offer letters, etc, had one hell of a time finding a place to live. Many landlords simply will not consider you, while others charge exorbitant deposits to cover the risk.
The recently bankrupt are also the least able to afford a security deposit several times higher than what everyone else pays.
The reality of credit in the US is that your life gets exponentially harder as your credit worsens, and the difficulty in turning that ship around increases dramatically. People who've never had to suffer from bad/no credit really need to examine this before clucking judgmentally.
I guess maybe in the Silicon Valley everybody is used to immigrants so nobody is surprised when the person with no credit shows up, especially if they have the actual money. If you have no money that's different, but then the primary problem is not credit.
If a person with no credit history in the USA (like a naturalized alien) is added as an authorized user to an existing credit account the credit history of this account is 'cloned' to the new addition.
I wonder how my move to Singapore will play out.
But should I ever come to the US, I'll make sure I have plenty of money.
The USA is a great place if you want/need the rule of law to protect property.
Overall, the US civil legal system is not corrupt. In many places in Asia and E. Europe corruption is systemic. It is much more difficult to keep a successful business in such an environment.
One example is real estate escrow services with title insurance.
1. buy low & sell high 2. defer personal gratification 3. save a % of everything you earn
you can gradually grow wealthy.
The world is in recession, and the US might be starting to recover. It is a hard market right now. But it will recover and boom (and then crash) again.
I have traveled in Russia and Mexico and made friends with regular people who live there. I also studied economics at university. I am thinking about what I am writing here.
edit: I was born and raised in the USA
Two inspirational books to get started:
The Richest Man in Babylon
Andrew Carnegie and the Rise of Big Business
And you have the means to travel to Russia and Mexico with enough depth to get to know people there, and went to a university.
Travel is beyond the means of most people in the US, both in time (can't get time off) and money (living paycheck to paycheck is common). That's if you're fortunate enough to be in the upper range of the middle class. Much lower and you're lucky to see a movie once a year, or participate in the broader culture at all.
What seems to matter most is an area's social and physical infrastructure. A person in the poorest part of NYC can scrape together enough for a subway ride to a better part of town to look for opportunity. They might even have access to a charity transportation service.
A person in the suburbs is doomed if their car breaks down, unless they can afford to fix it or know someone with the time to shuttle them around.
These are understandings derived from my experience and the experiences of people I know. I only took an introductory economics class at a community college, but I've also known plenty of well-educated, well-traveled people with no perspective. It seems like depth of education and experience matters more than breadth.
Consider the possibility that your studies and travels didn't open your eyes wide enough to the situation in your own country.
The world is moving in the right direction--especially away from suburban nests of roads that require a car, which is highly relevant to my own obstacles--, so I don't see a point in elaborating.
> 1. buy low & sell high 2. defer personal gratification 3. save a % of everything you earn
What if you start with nothing, in a place with little or no physical mobility? If you're lucky, someone you have access to has connections and is willing to work with you.
> I have traveled in Russia and Mexico and made friends with regular people who live there. I also studied economics at university. I am thinking about what I am writing here.
How much time have you spent in the US? I'm assuming you don't live here from the way you write.
As a male WASP child of educated, professional parents I have had almost every advantage possible. I know this.
Having watched many small businesses owned and operated by 'new' Americans has made me appreciate what is possible here, in a big city at least.
I see your point that a useful thing can be abused.