subject: Can You Really Live Without Credit? [print this page] If you survey a room full of Americans most if not all of them would probably admit to using credit at some point in their lives. For some consumers credit is a way of life individuals use credit accounts for everything from home improvements to filling up their cars with gas.
But is credit really a necessity to live a comfortable life? This is a question that you must answer on your own. It helps to ask yourself a few key preliminary questions to come to a conclusion.
Do You Care About Being Judged Based on Credit?
Many people struggle and strive to keep their credit scores above a certain level. Why? Because for some those three digits represent a rating on the quality and character of a person. Its a rating of how reliable you are, how trustworthy you are and how responsible you are with money.
It is no secret that creditors, businesses and even other individuals judge you based on your credit. But take a step back from all of that and ask yourself: why do I need a high credit rating or perfect credit profile?
Do you care if youre judged based on what your credit profile looks like? Some people with low credit scores have a tough time dealing with the stigma and are ashamed that someone, like a potential spouse or employer, may find out. Others manage to find employment, pay their necessary bills and live fulfilling lives without the fear of judgment.
What Do You Need Credit For?
Its important to consider your upcoming plans when deciding if you can afford to live without credit. Are you planning to buy a house or car soon and dont have the cash? Will you be shopping for a new apartment in the near future? Are you going to try to start a new business and need credit to get going?
If the answer is yes to any of those questions then yes, your credit score and profile does matter at the moment. But if you have no intentions of making any major lifestyle changes in the near future that involve taking out a loan or getting approved for a contract, you might be stressing yourself out about your credit profile unnecessarily.
Are You Addicted to New Shiny Things?
Consumers who are addicted to getting the hottest newest things, like new cars, stereo systems, gaming consoles, expensive clothes and the latest phones tend to rely on credit to secure those items. The lure of credit is largely based on the need to keep up appearances. But if you are the type of person who is fine driving a working used car for the long haul, doesnt mind shopping at a discount store and doesnt need the latest gadget theres a good chance that you can live a fulfilling cash-only lifestyle.
