Is it possible to live without credit?

If we were to look at what many of these people considered to be financial gurus say, we would exclude from our lives the option of having access to credit. For they claim that the best way to not acquire debt and to be able to become rich, is to give up credit forever.

But it is hard to imagine life without credit scores or credit itself. Especially if you need a loan for reasons such as mortgages, student loans and others such as financing apartments and cars.

Challenges of leading a life without a credit score

Even if living without credit is not something totally impossible, there are sure to be many obstacles in the way. Just as people who have a low credit score also face difficulties.

If you are looking for a house, even if it is for rent, even finding an apartment is more complicated. And if you are looking for a house to buy, the difficulty is also great.

In the case of travel, when you don’t have access to a credit card, even with the trip planned and paid for, it becomes difficult if you want to rent cars and even hotels, because the rental companies will want to hold a good part of your money as collateral. In short, without credit you have to pay for everything with the funds you must have.

Reasons a good credit score simplifies your life

First, if you don’t have a good score, all financing will be more difficult for you. In other words, this goes from a cell phone, to a house or a car. Even if you don’t want a loan in the future, having a positive score will help you a lot.

Some examples of this are: access to the best credit conditions, which are the biggest advantages of credit cards, being able to pay lower rates and better loan conditions.

And credit cards are even safer, because they usually have fraud protection. In the case of housing, you get rid of the need for a guarantor when your credit is good. And finally, it is good to give your spending a break so that you can save money to secure your emergency fund. Credit helps you with this too.

How to act to build a credit?

First of all, this credit building must occur with responsibility. You don’t have to give up your life for it, save to the point of not doing any debt, but you have to act responsibly.

The essential thing is that your bills are always paid on the right day when they are due. Don’t delay payments. Having a credit card to use wisely can also help. But be sure to control your money, avoid spending too much, even more unnecessarily. Especially with access to a credit card.

Be sure to add your bills that are paid monthly on time directly to your credit report. These are just a few of the many tips that exist for building your credit.