In an Uncertain Climate, Why Choose Credit?
If, like millions of Americans, you could fuel your (mortgaged) house for a year with your pile of credit card bills, you may be considering not using credit cards anymore. Increasingly people like you are choosing to close down their credit accounts and pay with cash, check or a debit card linked to a checking account instead of financing purchases small and large with a credit card. It seems like a smart move: avoid the interest and hassle of credit cards and the worry of how a late payment will affect your credit score, live within your means, never worry about creditors knocking at your door.
Before you decide to stop being codependent on credit, consider the good parts of your relationship with your card. It may not be all sunshine and roses, but there have been things you liked about your credit card. The assurance that you can reserve a hotel room or rent a car without hassle is a bonus, as are the possible frequent-flyer or percentage-on-purchases incentives your particular brand of plastic may offer you.
For all of the problems you may have had with your credit cards, they are also the foundation for your credit score. It is actually worse for the health of your credit report to have closed down all of your credit accounts than to have kept a few open in good standing for a long time. You need that credit reputation to get the house, car or even job that will help you keep that credit report shiny and spotless. It may be a sick cycle, but you can have control over it.
Choosing to live a credit-free life may have its advantages, especially if you have determined that you cannot consistently keep your debts under wraps. Talk to one of our credit repair specialists to determine whether this would be a good decision for you. Think of us as a marriage counselor between you and your credit card: we can either strengthen your bond and improve how it works or help you make a clean break.
- Understanding Credit:
