I don't own a credit card. Should I be worried?

Discussion in Credit Cards started by johnnear • Jul 9, 2014.

  1. xTinx

    xTinxWell-Known Member

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    Touche. You don't need credit cards unless you're strapped for cash or a entrepreneur who likes it fast and prefers to pay financial obligations in one go. I used to have a credit card but I think it only added to my financial burdens. It's like I deliberately placed myself in hot water and heaven knows how much they charge you on an annual basis. I'd rather keep a debit card. Everything is charged from your own bank account so it at least disciplines you and keeps your feet firmly on the ground. Credit cards tend to encourage splurging.
     
  2. helpingcollier4

    helpingcollier4Member

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    You have to be very careful when you have a credit card, but it is a good idea to have one. Our family has one credit card that we use to buy gasoline. We build our credit rating, because we have revolving debt (that we pay off monthly), and we earn 1% cash back on our purchases. While 1% is not a great return on an investment, it does provide a small extra $50 two or three times a year.

    I would recommend a card with a low credit line ($5000 or less) and with no annual fee. Pay the balance in full each month to avoid paying exorbitant interest rates.
     
  3. Happyflowerlady

    HappyflowerladyWell-Known Member

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    I think that everyone has their own idea of wherther a credit card is a good or a bad thing. It is definitely a good thing when used properly and you are trying to build up a good credit score.
    However, it is also very easy to buy things you can't afford, and then get in debt that you can't pay for. This has happened to a lot of people, and they ended up having to go through bankrubtcy, or some kiind of a court-mandated program to pay off the debt.
    I tink that if you don't have to have a credit card, it is better to be able to save for what you need, like people did in the days before easy credit.
     
  4. nonsiccus

    nonsiccusActive Member

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    Credit cards are almost necessary for most people in North America due to the cost of homes. Think about it this way, unless you save enough to buy a home with a lump sum of cash, then you're going to have to borrow money. Unless you're lucky enough to have a relative to borrow that amount from (usually $100k at minimum), you're going to have to resort to a bank for a mortgage.

    This mortgage will require a credit check, and without a credit card or some other form of credit, you'll be hard pressed to prove to the bank that you're fiscally responsible enough for them to give such a large amount of money.

    Same goes for cars, though on a much smaller scale.

    TLDR: You need credit cards to build up your credit so that you can take out large loans later on in life.
     
  5. Mockingbird

    MockingbirdActive Member

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    I don't own one either and I don't worry about it. You can always get a pre- loaded credit card if you really need to have one. I don't miss having one, i always thought they were trouble waiting to happen. i do have a few store credit cards and those I try to pay off as fast as I can. You can leave a small balance and then pay it off, it looks good on your credit report.
     
  6. nonsiccus

    nonsiccusActive Member

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    I don't think you should ever be rolling a balance forward on your credit card.. ideally you should be carrying a balance for your month and then paying off its entirety by the end of the billing period so as to return your balance to zero. This allows you to take advantage of any protection your credit card provider may have, as well as any bonuses that occur on purchase. Beyond that, you can also develop credit for future loans and also by having a zero balance at the end of the month, avoid interest.
     
  7. worldmachine

    worldmachineActive Member

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    I think you should be thankful not worried that you don't have a credit card, my advice would be to keep it that way if you possibly can. It is so easy to fall in to credit card debt and end up getting in deeper and deeper as the interest is piled on each month until paying it off is out of reach.

    You really need to be a financially disciplined person to own a credit card and then it can work in your favour. If you decide to get a credit card then make sure you pay it off in full each month, so you don't accumulate interest and can leave your cash in the bank during the month to gain interest on that.
     
  8. bonzer

    bonzerActive Member

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    As the previous posters have pointed out, if you don't want a credit card, then simply don't apply for it. Obtaining a good credit rating by using a credit card does not appeal to me. You can obtain a good rating, even without one. You are entitled by law to get a free credit report. It's your right! Certain measures like paying bills on time, being a signatory to your parents' cards among others should help you obtain a better credit rating.

    Freebies with a credit card, it's too silly for me. Trek on the right side of the road, always! Good luck!
     
  9. Lushlala

    LushlalaWell-Known Member

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    For me, the one good thing credit cards are good for is online shopping or buying bulky stuff, because they're more secure and you can claim your money back if you encounter any problems. However, I wouldn't advise anyone got one unless they have a regular guaranteed monthly income. When I became unemployed, I paid off my balance and cut my credit card up. It can be tempting to fall back on it when you're desperate, and if you don't have an income to re-pay the instalments or settle the balance in full, they can very quickly turn into a nightmare! Maybe once I'm back on my feet I'll get one.
     
  10. ExpertAdvice

    ExpertAdviceActive Member

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    Credit cards with benefits are generally very good. Some credit cards give you the benefit of getting travel points, travel insurance benefits, discounts when paying for certain goods and or services and hotel accommodation. I would recommend a credit card like this, any other credit card would just be a waste of time in my opinion.
     
  11. yvannahgeorgianne

    yvannahgeorgianneNew Member

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    I don't have one as well and my parents, specially my mom, who had fair shares of bad experiences with credit cards, discourage me from getting one. But as soon as our bank introduced us the idea of secured credit card, my mom started to think about it. Secured credit card is depositing a certain amount to your bank account, minimum of Php10,000(250$), and getting 60-80% credit limit of your deposit. The money you deposited will serve as a bond between you and the bank, in case you wouldn't be able to pay your credit card bill.
     
  12. Kavon

    KavonNew Member

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    You don't need to worry that you don't have a credit card. Having a debit card means you can use it for purchasing things online, and have some of the practical advantages of owning a credit card.

    There could be advantages to having a credit card, though, if you use it wisely, without using it to buy things you can't afford. You could build up your credit rating and have access to large amounts of credit. You could then use that for obtaining loans for investment purposes.
     
  13. Rosyrain

    RosyrainActive Member

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    If you are looking to buy a house or make a major purchase, you should have a credit card even if you don't plan to use it. It looks better on your credit report if you have different types of credit on it.
     
  14. cluckeyo

    cluckeyoActive Member

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    I have been guilty of charging up credit cards, but have always been able to hunker down and pay them off pretty quickly. This has given me the reward of a very good credit score. I still like credit cards, if they are rewards cards. Because it is a good way to make passive income. I have reorganized financially so that I no longer carry balances on credit cards. I pay them off in full each month and the way I can do that I by having an emergency fund big enough to cover monthly overages. It's working out great. I do love the convenience of a credit card.
     
  15. davos

    davosActive Member

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    A credit card allows you to make some sensible investments. Also they can save you the hassle from waiting to save enough money for something you want to purchase since your monthly income allow you to afford it anyway. Of course, you'll end up paying a bit more but it also helps ya to build a better credit history, and a better credit history increases your limit of loan.

    Is simple, if you have a stable job with a decent wage or a healthy business, a credit card is a good asset to acquire and develop. If you don't have a steady income and barely get by, stay away from conventional credit cards and search for a credit union.
     
  16. GreenPersimmon

    GreenPersimmonMember

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    I think you should only get a credit card once you know that you can pay if off at the end of the month. Most people have the wrong mindset when they have a credit card and will buy things they wouldn't have considered had they had cash or their debit card. Most people push you having a credit card to build up your credit history but it can do more damage than good if you don't pay them back. Even if I get rich one day, I'll only use it to cover emergencies.
     
  17. Vinaya

    VinayaActive Member

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    I also don't use a credit card and I am not worried. Instead of credit card,I use debit card. Using credit card means you use bank's money and pay to bank with interest, using debit card means you use your own money. Credit card will increase your debt. Debit card will let you spend only the amount that you have in your bank.
     
  18. Aree Wongwanlee

    Aree WongwanleeActive Member

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    The way I see it, a credit card is just a convenience. Say, you see a special offer. It's something which you need. If you buy it on the special offer, you would save some money. However, you don't have enough cash to buy it immediately. If you wait for payday, the offer would be over. That's when a credit card can save you some money. Of course, that only works if you use it correctly. If having a credit card encourages you to buy things you don't really need, then you are heading for trouble.
     
  19. xTinx

    xTinxWell-Known Member

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    It's not something you should be worried about. As long as you know where your finances are heading and what you want to achieve in the long run then you should not be worried whether or not you have a credit card. If you think you have the means and are disciplined enough, then get a credit card by all means.
     
  20. artyarson

    artyarsonActive Member

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    You absolutely have zero things to worry about If you don't have a card. I've lived all my life up until this point with no card and I was pretty much satisfied with it. I got it and nothing really changed. I'm still using cash most of the time. However, If you purchase a lot of stuff online = you'd better have a card or, at the very least, a PayPal account.
     
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