Is a Credit Card-Free Lifestyle for you?
Has the entire credit card industry got you down? Does the constant fight between creditors and the government have you confused regarding your rights as a consumer?
Many consumers, particularly over the past year and a half when creditors tightened their belts and denied credit to millions of consumers, have become jaded towards the credit card industry. Combine that with the new credit card legislation and the ways in which many credit card companies have found a way to skirt the current legislation, and it’s no wonder why so many consumers are now heading toward a “cash only” philosophy.
Although this can certainly eliminate much of the hassle and grief associated with credit cards, it does make establishing a good credit score very difficult to achieve.
The bottom line is that, in order to obtain a loan for anything from a car and home to a student loan, you must have a credit score. Often times, no credit is as often as detrimental as bad credit.
With that said, there are ways in which you can enjoy a relatively credit card-free lifestyle without jeopardizing your credit score in the process:
- Find one, great credit card with a low, fixed interest rate – Avoid dealing with low, promotional rates that will expire. Instead, do your research and find a card that has a low, fixed interest rate.
- Make regular purchases and pay them off each month – You must make purchases on your credit card in order to establish a strong credit history. You can simply make one or two purchases each month and then pay those purchases off when the bill arrives to begin building your credit score.
- Consider rewards to make your credit card purchases work for you –Credit cards can end up saving you big, provided you understand how reward credit cards work. Making purchases – and paying them off each month – may allow you to earn anything from cash back to airline points, so consider the advantages of credit cards instead of just the disadvantages.
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