<prompt> Human: Hello, I am not from us eu and we have nothing like credit I read here all the time about. When someone wants to take a loan, the bank simply evaluates his potential to pay them back - whether he is in debt already, whats his job, how much money does he make, etc..So I guess my question really is, why is credit needed?  <response>: When someone wants to take a loan, the bank simply evaluates his potential to pay them back - whether he is in debt already, whats his job, how much money does he make, etc..Youre basically defining credit. 