Can one live without a credit card?

[shengmei]

I have no credit cards and I don't intend to get any. Almost everybody I know had their lives ruined by credit cards.

I don't know if it is possible, though.

[Ima saver]

My mother lived all her life without credit cards. She had no credit at all. she paid cash for everything. I have had credit cards all my life, but I have never had a problem with them.

[Joan.of.the.Arch]

Of course you can live without them. The first thing I ever really needed a CC for was to rent a car. I did not have one a CC at the time.

I assume you understand the errors of all those people whose lives were messed up by credit cards and that you will not repeat their errors. No need to be scared as long as you have control of yourself. For some people it is no problem at all to use credit cards only to one's advantage. You would do that, right?

[boefixepa]

Of course you can.

The only way I can see a problem is if you don't have a credit history, but if you always pay cash for everything your fine. The biggest problems I see would be a house or something really expensive like that, but if you can get by in that area then there's not reason you HAVE to have one.

[Ima saver]

I worked at a jewelry store when I was a teen and I pulled my mother's credit. She had none. She had paid cash for her house and cash for her cars.
I use to get the cash back that they pay, other than that, they are paid off every month.

[tgavin71]

I have just refinanced my home loan. One of the conditions was that I had to close both my credit cards. I know its stupid but if feels like I have lost a friend. I always paid them off every month and never used them to "top up" my budget. I usually use them to get the rewards points and to reduce the amount of cash on my person.
Once the dust has settled I am going straight back to my bank (not home loan one) to reopen one of them.

[timl]

There is no real reason to try to live your life without credit cards. If used responsibly, they can be enhance your finances. Through the years I have gained many free trips due to airline cards, as well as thousands of dollars in cash back from credit cards. And my total amount of interest paid? Zero. Also a good credit rating will allow you finance a house, etc.

However if you feel that you are basically an irresponsible person with no sense of control over your spending you should avoid them at all costs. But if you are responsible, it is to your advantage to use them. It is like saying I will avoid alcohol forever cause many people have alcohol problems. That may be true, but just because others overdrink doesnt necessarily mean you shouldnt be able to enjoy a nice glass of wine or a beer.

So its not that credit cards themselves are inherently evil, its all up to you whether you have the ability and self control to use them responsibly. Many people do, and many don't. That's what you should be deciding.

[Broken Arrow]

Oh yes. I myself have had credit cards, been a bad steward of them, gotten rid of them, and then lived years without one. Just recently, I got back on the credit card bandwagon.

The only thing one needs to know is this: Pay it off at the end of every month. If you can't, cut it up.

If you are a good steward of your credit cards, they can and will reward you handsomely one day.

[lrjohnson]

I was "off the radar" for about 7 years, no cards at all. It has not helped me; now I need a credit history-it would have helped to have a card. I got a card about a year ago and have not even come close to a problem with it. It's building my credit score for me. I need a credit score, a good one, to purchase a house.

[shengmei]

My husband has four credit cards. I was thinking about possibly add my names unto his accounts instead of getting new cards myself.

Is that a good idea?

[more freedom]

yes, of cos.

That can even some you some bad debts sometimes.

[Broken Arrow]

It's a good idea only if you are completely confident in his ability to pay his debts on time.

Having your name attached to it can both help and hurt your credit score depending on his financial discipline.

[Broken Arrow]

Originally Posted by lrjohnson

I was "off the radar" for about 7 years, no cards at all. It has not helped me; now I need a credit history-it would have helped to have a card. I got a card about a year ago and have not even come close to a problem with it. It's building my credit score for me. I need a credit score, a good one, to purchase a house.

Took the words right out of my mouth.

[sweeps]

It's going to become very difficult to live without a credit or debit card in the next 10 years. And since debit cards are inherently dangerous....

[autoxer]

Here's my credit mess:

I just cut them up a couple weeks ago, to avoid all temptation. I don't owe a whole lot, but the temptation and ease of use make it keep spiraling out of control. I will continue having my cell phone, & EZ pass charged to my credit card, but I will stop using it for entertainment. That way I can maintain a good credit history to help me get a good mortgage.

Sweepsplayer, Why are debit cards inherently dangerous?

[sakigt]

Im sure you could, but what a pain it would be.

Be responsible and you dont have anything to worry about

[Duchesse]

Originally Posted by sakigt

Im sure you could, but what a pain it would be.

Be responsible and you dont have anything to worry about

I have to agree. They're convenient. Pay them off each month and live large without the worry.

[Diolla]

Almost everything you can use a credit card for you can use a debit card for (internet, renting a car, reserving airline tickets and hotel rooms) but debit cards will not get you a credit rating. I don't have any credit cards and have not had any trouble but I already have a house and emergency fund and I am not looking to borrow in the future so I am not concerned about my credit rating. My debit card also gives me cash back but I don't even use it except when necessary, mostly I pay cash.

You have to decide for yourself if you can use them responsibly and pay them off every month. If they would be a problem for you then I would go ahead and live without them. There are alternatives and misuse would hurt your credit score much more than not having them would.

I also would like to know why debit cards are dangerous?

[sweeps]

Originally Posted by autoxer

Sweepsplayer, Why are debit cards inherently dangerous?

Because it's tied directly to your checking account. If a business accidentally overcharges your card or someone makes fraudulent charges to your debit card, eventually you can get it fixed but in the meantime you may be overdrawn, bounce checks, not have money available to withdraw cash or make essential purchases, etc.

Also note that some businesses (gas stations, for example) block out a certain amount on your card before you've actually made a purchase. (link) It could be days before the block is released, again making funds unavailable to you.

With a credit card, someone else is absorbing those hits and you have plenty of time to correct the problem before your checking account gets involved. That in turn means that you can keep more of your money earning 5% in a savings account rather than providing extra buffer in your checking.

[Broken Arrow]

It's also worth reiterating that, once you establish a good credit score, a credit card will reward you with cash or points. Debit cards can't do that either.

Doh! I was thinking the same, but sweeps got to it first.

Beautiful sight, autoxer!