Is It Possible to Live Without a Credit Card?

Most people who live in a world without credit cards are those who have spent way too much, and now, according to reports, tend to spend almost 20 percent lesser than those who do. Of course, being able to  do this means staying in control of their finances better those with credit cards.

However, living in a world without a credit card, and with only cash still has its disadvantages. For one, being able to book hotel rooms or rent vehicles becomes difficult.

But there’s a solution to this: debit cards.

These cards, which are connected to a checking account, can help you make the aforementioned purchases minus the inconveniences.

Yet there’s a caveat: debit cards aren’t protected as well as credit cards are. While the latter is covered financially by the Fair Credit Billing Act, debit card users will have to pay at least $50 if they report a lost or stolen debit card within two business days.

After two business days, the limit can go up to $500 but in the instance where the transaction isn’t reported after 60 business days, the cardholder will have to pay the complete amount.

However, this isn’t the only inconvenience that people struggle with – those who live in a cash-only, credit card-free world.

Without the opportunity to build good credit, which happens through the use of credit cards, when you apply for a loan or a mortgage, lenders will look at your credit profile as one that is risky. This might result in one not getting interest rates that are fair or even be approved for the loan at all.

However, all this pales in comparison to getting into trouble with creditors or even ending up with little or no savings for the things that really matter.