Credit cards can be an incredibly useful tool to build your credit and prove creditworthiness to potential lenders. They can also be dangerous when used irresponsibly.
They’re often advertised to young people and college students, which is sometimes seen as an attempt to trap them in a cycle of debt and interest. But there are also real and quantifiable benefits to credit cards, including massive sign up bonuses for qualified applicants.
Some people aren’t able to handle the "free money" feeling that credit cards give and end up overspending. When they aren’t able to pay back what they’ve spent, their credit can tank. It doesn’t take long for the thing that was supposed to help you to turn into a weapon used against you.
It really comes down to each individual figuring out what’s right for them. These Reddit users shared some of their personal stories and reasons they’ve decided to live a life without credit cards. Of course, INSIDER cannot independently authenticate these stories.
I don’t like the idea of having to have one.
"I just prefer to live within my means. I know I could be responsible with a credit card, I just hate the idea that I have to have one for the sake of my credit score … Just because others can’t track every expense I have ever made doesn't necessarily mean I am bad with my money."— Redditor Mangertron
It’s not a big deal if you don’t mind jumping through some hoops.
"I am 28 and have never had a credit card. I have never had any trouble because of it, but I've also never tried to finance anything, except my home, since I paid off my student loans. Before I bought my home both me and my wife's credit scores were ‘indeterminable’ because we had no open credit accounts and no loans for a couple years … If you choose to not use a credit card and live without a credit score, you may have to jump through a few hoops here and there. Your insurance premiums might be slightly higher sometimes, for example. But I'm happy to live with that. So long as you don't plan on borrowing money or financing any of your purchases, it's not a big deal in my personal experience."— Redditor bjbarlowe
I can’t be trusted with it.
"I have learned that I can't be trusted with a credit card, so it's a debit card for me instead!"— Redditor tlork
See the rest of the story at Business Insider
