Is It Okay To Never Have A Credit Card?
Is it OK to never have a credit card?  – Forbes Advisor

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It is completely acceptable to avoid having a credit card. Consumers can pay entirely with cash, check or debit card and build a positive credit history through other types of loans. According to a May 2021 Federal Reserve Report on the economic well-being of American households, 83% of American consumers had at least one credit card in 2020, which could mean that up to 17% of American consumers go without. Anyone can use cash to make purchases or get a debit card from a bank for convenience.

However, while there are ways to get around the United States without a credit card, there are downsides to doing so. Here’s what you need to know if you decide to live a plastic-free life.

Disadvantages of not having a credit card

Forgoing credit cards can make it difficult to build a decent credit history with a good credit score. Typically, college students (or even proactive high schoolers, if parents co-sign them or add them as authorized users) get their first credit card at school, so they can start building a history early. credit. Once they’re ready to buy a car with an auto loan or buy a house and take out a mortgage, their credit history must be deep enough to qualify for a loan. Without this kind of history, it can be difficult to make major financial purchases later in life.

Using only cash or a debit card may also have limited rewards potential. One of the benefits of owning certain types of credit cards is receiving rewards or cash back on everyday expenses, such as groceries, gas, or travel purchases. Some US banks offer small rewards with debit cards, but it can be difficult to find rewarding debit cards.

Another disadvantage of paying with debit cards is that they don’t offer the same type of purchase or fraud protection as credit cards. Refunding fraudulent purchases to a checking account may take longer or not happen at all depending on the bank or the situation.

And finally, activities such as renting a car or staying in a hotel room can be more complicated if you only use a debit card. Some companies will take a large deposit from your checking account if you use a debit card, which could tie up your money for days.

Ways to not have a credit card

Despite some significant downsides, there are ways to build good credit and maintain a healthy financial history without getting a credit card:

  • Use cash or a debit card to limit spending. When only cash or a debit card is available, you are limited to spending from what you have on hand or in your bank account. It is almost impossible to spend more than what is there. This can be an effective form of fiscal discipline. Debit cards are also more convenient than cash, especially for making purchases online.
  • Build credit by paying other loans or bills on time. Student loans or a car loan co-signed by a parent still count against the loan holder’s credit history. Punctual payments can improve a loan holder’s credit rating, but it may take longer to establish good credit this way. Paying other bills on time like rent, utilities, phone or cable can sometimes count towards credit history. Although these payments are not normally reported to the credit bureaus, there are free programs that can make this possible. For example, Experian offers a free program called Experian Boost that will add a positive bill payment history to an Experian credit report.
  • Become an authorized user. Becoming an Authorized User on someone else’s credit card account does not require the user to obtain their own credit card account. This can be a useful workaround for people who have a responsible friend or family member who is willing to help them build their credit history. As an Authorized User, the User will enjoy all the benefits of a positive credit history and credit rating as long as the primary account holder makes their payments on time and pays off their balance each month. Before becoming an Authorized User, ensure that the credit card issuer reports Authorized User activity to the credit bureaus.
  • Get a credit builder loan. Credit-generating loans help people build a good credit history as long as they make payments on time each month. When approved for a credit builder loan, the lender will hold a small or large sum of money that the lender must repay in installments. Once they have repaid the entire loan, all the money will be released and can then be placed in a checking or savings account. This is generally not the best way to build credit, as there is a cost, but it is an available option.

Find the best credit cards for 2022

No credit card is the best option for every family, every purchase or every budget. We have selected the best credit cards so as to be the most useful for the greatest number of readers.


It’s possible to avoid having a credit card, but it might not be the best money move depending on your financial goals. However, there are ways to build good credit without having it, such as applying for a credit loan, becoming an authorized user, and building credit by paying other bills on time. However, using only cash or a debit card to make payments has its drawbacks. Debit cards don’t offer the same type of purchase or fraud protection, and they often don’t have the same cash rewards or sign-up bonuses. Be sure to research all the pros and cons of not having a credit card before going completely without one.


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