Learning to Live Without Credit Cards

The average American has several credit cards and thousands in credit card debt. There are some people who choose to live without credit, and some who must live life without credit due to circumstances and choices made in the past. Despite all the hype, it really is possible for everyone to live without credit. To learn how, read on.

Can We Live Without Credit?

Live Without CreditYou may be reading this because you already have bad credit. You may have borrowed more than you could pay back, causing you to fall behind on your credit card payments. You might have defaulted student loans or unpaid utility bills. Perhaps you are a victim of identity theft and the thief ruined your credit. Regardless of the reason, it is important to rebuild your credit rating while you live without credit. You can do most credit repair without actually using credit. Rebuilding your credit gives you options. It is one thing to live without credit because you choose to and another to live without credit because your credit is bad and you have no choice.

When you have bad credit or do not want utility companies to use your credit rating, be prepared to pay a deposit. The easy way to get utilities without using credit is to refuse to give them your social security number. Many utility companies use your credit rating to determine if a deposit will be required, and how much the deposit will be. They usually have a set amount that is required when you choose not to disclose your credit information.

Renting is a little more difficult to do without credit, but it is certainly possible. If you have bad or non-existent credit, it is usually best to avoid rentals managed by a property management companies. These companies are usually quite inflexible, and you’ll just be wasting your money on application fees. Instead, look for rental properties that are managed by the owner of the property. Individuals who have only one or a few rental properties are much more likely to work with you and give you a chance. The biggest thing here is to not mess up. Treat the property well and the owner will be a good reference for you in the future.

Getting a job when you have bad credit can be easy or difficult depending on what kind of job you are seeking and the industry in which you work. Most unskilled labor and service industry jobs, such as fast food or restaurants, construction, labor, farm work, lower-level positions in retail, and medical or veterinary work do not require a credit check prior to employment. The types of jobs that usually require you to have good credit are state and federal government jobs, security, loss prevention, banking, and any job that requires a security clearance. Some employers want a credit check without there being a good reason for it. You can simply avoid those jobs.

It can be a challenge to rent an apartment or get a job without credit, but it can be done. Regardless of whether it is a personal choice or a necessity, you can live without credit.