The Secret to Living Without Credit

Posted by Rachel on September 22nd, 2008 filed in Credit Advice, Credit Score

Devil’s Advocate
It’s funny how everyone has fallen into the credit world of credit cards and credit score. Credit cards are like tricky games of who can out smart who and credit scores are just silly numbers that companies and institutions with trust issues use to size you up. Wouldn’t your life be so much better if you never have to worry about juggling your money on credit cards or have to stress about getting a high credit score? Wouldn’t that be great?

If you think it is impossible, then I am glad to tell you that you are wrong because people live without credit every day.

The Secret
The secret to living without credit is…


to not live with credit. Simple as that! Just don’t use it at all. Now you may argue that you need credit to buy this and that, but the truth is that you don’t.

But How?!
The trick is to never buy anything that you can’t afford in cash. This way you never have to take out a loan and you never have to charge it on a credit card. Therefore, you will never be in debt. You can still buy a car and even a house with pure cash, it is not impossible because people have done it. It’s all about being patient and saving your money to buy the things you want, instead of using money that isn’t yours. Having a goals oriented system for saving money will help you stay focused to obtain the goals you set for yourself.

If you hate carrying cash, then you can always get a debit card. Debit cards have nothing to do with credit. They are just easy ways to use the money in your bank account. Personally, I only have a debit card, and not a single credit card to my name.

The Benefits

  • No debt
  • No interest fees
  • No owing people money
  • Saves more money
  • Less Stress
  • No worries about increasing your credit score

Honestly, you can do everything credit free, so why not live without credit?

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One Response to “The Secret to Living Without Credit”

  1. Annie G Says:
    September 24th, 2008 at 5:54 am

    The only credit we live with is a mortgage (will pay off before age 50 and we don’t plan on getting another). Although we have credit cards, they are strictly convenience and a way to earn free rewards - we always pay off fully every month. We budget and track everything down to the penny.

    And, yet, our credit score matters a lot. Why? Because it is now used for non-debt issues. Trying to get a new job? They may require that you let them pull up your credit score. How about home or car insurance? They use your credit score to determine your rates!

    The idea behind this is that credit scores show “money responsibility” which supposedly is directly linked to your driving responsibility or work ethic. I completely disagree and believe our lawmakers have let us down here.

    Credit scores only show “credit responsibility” not “money responsibility”! I doubt anyone would say that people like us who buy only what we can afford, budget all of our money, have never been late even once on a payment, save 20% of our income for long-term goals and another 20% for short-term goals, and have a nice large nest egg for emergencies are “poor money managers”. Yet our credit score is just average because we have very little credit.

    So, yes, you can live without credit, or perhaps like us without much credit, but your credit score will still matter. And, sadly, you will pay the price for being the best kind of money managers with higher insurance bills and less job opportunities!

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