Living Without a Credit Card

By Eliza Daglish on December 13, 2012

life without credit cardsCredit card terminals are in every shop, every bank, and ATMs line every major road. Can you realistically live without a credit card in today’s world?

Some have tried – the trend is popular with people who have experienced heavy credit card debts – but it might not be all that its made out to be. Here’s what you give up when you go without a credit card:

  1. Security – Paying with a credit card is one of the most secure ways to pay a bill, shop online, or buy items in a store. Credit cards are protected against fraud for all uses.
  2. Warranties – Credit card companies provide a basic warranty (with modest exceptions) on everything that you charge. The warranty over and beyond a manufacturer’s warranty is a great benefit many forget.
  3. Rewards – Credit card rewards can easily tally to more than $500 per year, even for light spenders. Consider the benefits of gasoline and grocery rewards before you put away your credit card.
  4. Credit – Having a credit card is an important part of having a good credit score. As credit cards are one of the few ways to get a revolving account, you’ll miss out on this big component of credit scoring calculations.
  5. Convenience – Face it, having a credit card is convenient. Going to the ATM every time you need to make a purchase takes time, gas, and in some cases, money!
  6. Interviews – Credit reports are now part of the employment process. Using a credit card responsibly shows a potential employer that you are a responsible team player that would be good in their organization.

Having a credit card is just another part of operating in this complex financial world. Don’t worry, though – having a credit card doesn’t mean that you have to use it all the time, or that you have to pay interest. Make a single charge each month and pay the balance in full to get the value of a credit card on your credit report.

Similar Posts:

Comments are closed.

Get free updates...

RSS Feed