Traditionally, Chinese culture has prized saving money and avoiding debt. The virtue of thrift was paramount, and borrowing was often seen as a last resort or a sign of poor financial management. However, with China's rapid economic development, this mindset has undergone a massive shift, especially among younger, urban generations.
Comparison to Western “Credit”: While 贷款 (dàikuǎn) translates directly to “loan,” the cultural approach to acquiring one highlights key differences. In the West, individual credit history is paramount. In China, while a credit score (`信用`, xìnyòng) is increasingly important, factors like a stable job at a state-owned enterprise, existing assets, and especially a substantial down payment (`首付`, shǒufù) are often critical.
A classic example is buying a home. The down payment required for a mortgage (`房贷`, fángdài) is often so high that it's common for the entire family, including parents and even grandparents, to pool their life savings to help a young couple. This reflects the strong family-centric and collective values in Chinese society, where a major life purchase is often a family project, not just an individual endeavor. This contrasts with the more individualistic approach to home-buying in many Western countries.