[prophet_]

The difference I see is that in Europe, at least where I live, at the end of the month the bank will charge your bank account with the full amount of whatever is the balance of your credit card.

If you have no money you will go into overdraft and that’s about it, you basically have a problem and the bank will keep nagging about that overdraft if you don’t have an agreement.

The goal is to use the “credit” of the credit card for 30 days as a convenience. The implicit expectation is that it will be paid in full at the end of the month.

In countries like US and South America (e.g.) many people see credit card as free money (that they don’t have), so when the end of the month comes they simply don’t have the money to pay the balance or pay very little of it. The consequence is what we all know: high interest on the balance which keeps snowballing.

I know in south america banks even have interface for payment in instalments etc. Here in Europe, at least my bank they don’t have have such feature, I guess it’s just not meant to be used and abused they way it happens in other places.

This is my view at least.

[maxerickson]

In US financial jargon, a card that expects payment in full every month is a "charge card".

https://www.bankrate.com/finance/credit-cards/is-a-charge-ca...

[leesalminen]

Gotta love when you’re eating at a restaurant in Chile and when it’s time to pay they ask if you want it billed on your card in 6 monthly installments. Even as an American, it always makes me laugh a bit at the absurdity of doing that for your meals.

[developer93]

That definitely also happens in UK, financial illiteracy and poverty/desperation exists everywhere I suppose.

[griffiths]

What you are talking about is a Charge card, but in Europe you can get a Revolving credit[1] card as well but I would say they are not as common as in US.

On the Charge "credit" card you don't pay interest unless you go into overdraft at the end of the payment day for the month.

With the revolving credit you pay the balance on your own terms but you pay the interest rate for it until closed.

[1] https://www.investopedia.com/terms/r/revolvingcredit.asp

[2rsf]

Swedish credit cards work with invoices and you are able to pay in partial payments, overdraft doesn't exist

[actionfromafar]

Overdraft was a thing back when balance wasn’t checked online.