Live life without a credit card – some useful tips
A person’s credit score is very important as we are all well aware of by now. These credit ratings are used in the most unusual places and unusual scenarios. It is used as a tool by prospective employees, potential landlords, auto loan companies etc. In spite of the laws governing credit card information it is still being widely used for various pieces of information.
What are the options if one wishes to do away with the credit card or if one wishes never to get into a credit card mess by not owning a card? If one wishes to live a life free of the credit card with its added miseries then it is possible and there are ways to do it. Although living a life free of credit or without borrowing is very difficult it is not impossible.
Using the debit cards – the benefits of using a card is that it is convenient to carry and it is used as a substitute for cash. The added advantage is the consumer protection that comes with the card. However, with debit cards one can get similar benefits with respect to consumer protection minus the hassles of applying for credit. When a checking account is opened the bank will usually use the credit information for identification process only and it would not be used to either accept or deny the account on the basis of the credit scores.
Debit cards could be used instead of credit cards in most places. There will however be some pre-authorization charges that would be levied. Authorization would be placed on the account for open-ended purchases like car rentals, gas pump charges etc.
By using a debit card one can avoid any records regarding credit account on the credit report. One must avoid all forms of mortgages such as auto loan etc. any loan availed from a financial institution would be reflected in the report so, in order to avoid that one would have to borrow from friends and family or alternatively wait to save the entire amount. This would certainly be the most difficult part more so if one wishes to own a home.
Even if one wishes to live without the card it is important to review one’s credit report each year. There are chances of one’s credit being stolen and misused; hence it is advisable to be vigilant at all times. The credit report will look bare without information. Credit scores are used in most places but if one can live without a card these tips should help to some extent.