What are the advantages/disadvantages of not owning a credit card?

Answer 1

Advantages; No bills, no debts, YOU own what you have, no temptation to buy more then you can afford. If you can't afford it now what makes you think you can when the bill comes in.

Disadvantages: You have to save up to get what you want, takes time and patience.

I have not had a credit card since 1974. I have bought 2 houses and 5 cars since then. I have owned the cars outright, no lein on them. Feels good.

Answer 2

Advantages are that you have no debt, you're not tempted to make purchases with money that you don't have, and you don't run the risk of missing a payment and ruining credit.

I can't think of a single disadvantage, except maybe if you have no credit history at all and you are trying to get a car loan or a mortgage.

My husband and I have used credit cards for years and have recently stopped. We still have credit card debt we are paying off, but as far as new purchases, we've become a "cash only" couple. If we don't have the money to buy something, we don't buy it, period. It used to be that you needed to have a credit card to pay for a hotel room or rent a car, but now if you have a debit card, that's not a problem. A debit card will be run through as a credit card, only the money will come right out of your checking account!

Answer 3

The only real advantage to not having a credit card is that you won't be tempted to make unnecessary purchases or end up to your eyes in debt. However, there are many disadvantages to not having a credit card. Here's a few:

* No emergency credit line.
* Can't purchase certain items, ie. online purchases.
* No protection on purchases, both online and brick & mortar. Cash purchases are on an as-is basis for most transactions, whereas credit card purchases can be disputed if you feel the product/service you received wasn't to your satisfaction or wasn't as advertised. This is called a dispute/charge back. Maximum liability is $50, although I've never heard of anyone actually being charged by their credit card company for dispute/charge backs.
* You establish credit through on time payments, balances, and length of account.
* Credit cards can be stolen, but are easily replaced and you're not liable for fraudulent charges. Cash/checks/debit cards can easily be stolen and once the funds are gone, you're pretty much screwed.

Answer 4

It won't do anything for him, it will only appear on your file because you have the agreement. If you don't use the card yourself, him using it may help you as it will show regular payments rather than zero. You do need to ask yourself if you really want to let your boyfriend use your credit? I wouldn't, I would only use my credit for my mother or my daughter if they really needed it! No one else! Because if the s*** hit the fan and he didn't pay, the courts would not be interested in him at all! Also, does he have no credit or bad credit? He should be able to get something built up if it is the latter, his bank would prob give him a small overdraft and he could build it up with a contract mobile phone. If it's bad credit, he should pay off his debts before taking out anything else and live within his means instead of risking your credit rating (sorry if that sounds harsh) :) M x

Answer 5

The problem with credit cards is that when you buy something, and you are not actually reaching into your pocket and handing over cash money, it feels as if you are not handing over money at all. The reality is that you are about to end up paying up to ten times more for that item than you would if you HAD paid cash.
When the credit system was first introduced into the UK some decades ago, it was jokingly referred to as buying on the "never-never".... LOL because you never EVER paid your credit off. You would always go on and start racking up debt on another item, and another, and another. The only advantage I ever found to a credit card was when I was doing some world travelling. You can't go from country to country hauling a sackful of money in different currencies. I had Visa and American Express. And I paid off the balances monthly. Credit cards were a convenience, NOTan excuse to run up a bunch of debt.
Credit cards tempt people into "Impulse Buying" because it is sooooo easy to just whip out that bit of plastic, and bingo, you sign on the line and walk out of the store with that expensive item. You didn't need it, you just wanted it.... Like a magpie attracted to a shiney item and he dives on it, picks it up in his beak and carries it off to his nest. He really doesn't have any use for it, but it was pretty, and shiney and attractive. The magpie is smarter than the human..... he didn't have to pay for it LOL
I heard recently that theaverage individual credit card debt in this country is around $8,000. I think that expression "Never-Never" pretty much hits the nail on the head.
Hung up my travelling boots a few years ago, and shredded my credit cards. Anywhere I go these days, my check, or my cash is acceptable. If I don't have the money in the bank, I don't need the merchandise. I have a debit card to make the occasional, rare purchase on the internet. I can't remember the last time I used it... probably about a year ago LOL. I find a ton of advantages in not having credit card, and very, very, very few disadvantages. There is no better feeling in the world like not being afraid to answer the phone or go to the mail box, for fear that it's another communication from a creditor trying to get his money.

Answer 6

The advantage of not owing a credit card would be that you certainly won't screw up your life by getting yourself in real bad debt problems. A disadvantage would be not having the convenience of just pulling out a charge card when you don't have cash.

Answer 7

if you don't have a job and pay for your own housing, food, clothes, etc. and you get a credit card, you will inevitably max it out. if you live off of college loan or parents' money, you're used to spending it all. so now if you get a credit card, then you will use it the same way - spend it all. and then, when you actually get a job, and you're paying for your own everything, you'll have a huge burden on your back - the credit card payments. some people say they're good for emergencies, but then again, you can also save up some pre-determined amount of money for emergencies too.

that said, if you can use one responsibly (pay off the full balance every time you get a statement), then you're building your credit history. having a good credit history means an easier time buying a condo/house/new car.

so ask yourself if you are more likely to spend all your money (don't get a credit card), or if you know to save and set up a budget (ok to get a credit card). i was more likely to spend all my money, and i got credit cards too (it starts with just one!). now after college i'm stuck with 25,000 in credit card bills, another $25,000 for student loans, and $20,000 for a car.

don't worry if you choose not to get one. the card you get from your bank for your checking account has a visa/mastercard logo on it, and it can be used just the same if somebody needs a credit card for say a deposit at a hotel.

Answer 8

Owning a credit card...

Advantage: Great convenience and safe because you don't need to bring cash and you can freeze the credit card if it ever get stolen or lost.

Disadvantage: You're officially a debtor with a debt that can bankrupt you, unless you pay on time, everytime.

Advice: Stick with cash, unless you're disciplined you always pay on time and incur no interest charges.

Answer 9

this is the good and bad of owning a credit card
advantage; If you keep your payments on time you will establish a great credit score.
disadvantage; If you only pay the minimum and not include the amount of finance charge then it will take you literally years to pay it off. (ex: minimal payment $50, finance charge $20 send them $70)

Answer 10

Advantage: keeping your debt down.

Disadvantage: sometimes they are required to book hotel rooms. My dad was well known and not poor but when he went to Madison they wouldn't let him get a hotel room without one, so after that he got one. It was kind of ridiculous because when I say "not poor and well known" I mean he was on the advisory board... of a bank!