Credit cards currently play a primary role in all aspects of daily life. From purchasing groceries, household supplies, and personal items to luxury vacation travel, charge cards are the main payment method. In fact, most consumers find it difficult to imagine surviving for one week without the use of at least one card.
More than 80 percent of adults in the U.S. use credit cards regularly. Today, even small children are learning to make purchases with their parents’ charge cards (under parental supervision). To most of us, living without credit cards sounds like a rather grim and restricted lifestyle.
Although some consumers live without making plastic charges by choice, others may have experienced bankruptcy. Others may have a poor or relatively inactive credit history. These people may have difficulty obtaining approval for more credit. Whatever the reason for lacking access to great credit today, believe it or not, you can definitely live without credit cards.
How to Enjoy an Active Lifestyle Without Credit Cards
Ways that you can enjoy an active daily life without owning any credit cards today include the following:
Budget Wisely and Well
Having the use of credit cards can give you a feeling of wealth and well-being. Of course, the obvious downfall is mistaking the amount of money that you can borrow as your own money. It is easy to regard your credit limit as your own checking account balance to use freely and replenish later.
One of the first essential rules of managing your credit is to budget wisely and well. Once this becomes a habit, you will refrain from overcharging much more easily than before. The essential step is to create a budget and plan to stick to it. To help you achieve your budgeting goals, try test driving one of the many budgeting apps that are available.
Earn Rewards Without Plastics
One great advantage offered by credit cards is earning points, mileage, or cashback on purchases. These benefits give you valuable discounts as you spend. Yet today, you do not need credit cards to receive rewards. Many airlines, hotels, travel agencies, and merchants offer attractive rewards to their loyal customers.
Some websites offer consumers immediate discount rates when they shop at popular online stores and marketplaces. Major credit card companies now also offer debit cards with cashback rewards. These debit cards are of great help to consumers who may not qualify currently to receive a credit card. Renting a car or reserving hotel accommodations required using a credit card in previous years. Yet today, many of these companies accept debit cards for making reservations.
Obtain a Secured Credit Card
If you do not qualify for credit card approval, consider obtaining a secured card. When using one of these cards, you must deposit funds that you can then draw on to make purchases. You will be required to make monthly payments, which will start building your credit rating. Owning secured credit cards and using them wisely can make it much easier to qualify for unsecured charge cards later on.
Rely on Installment Credit
Some people build and strengthen their credit ratings with the use of automobile or student loans. When you have a good record of timely payments on these loans, your credit history will improve. This can also enable you to gain approval for credit cards in the future.
It is possible to live an active and full life without the use of credit cards today. By seeking other means of borrowing and repaying in a timely manner, you can build a strong credit history. If you decide later on that you would like to own a credit card, you will be prepared to apply. You can be ready to start enjoying the many varied benefits that credit cards offer today.
