What are the benefits of no credit history?

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » What are the benefits of no credit history?

What are the benefits of no credit history?

The content is accurate at the time of publication and is subject to change.
A lot of people spend a lot paying out credit card bills. With the holiday season, this spending gets even bigger. This is where a lot of credit card companies and brands strategize through reward incentives, for customers to spend even where there isn`t a holiday around the corner. A lot of credit card customers fall prey to these strategies and end up with massive outstanding balances and big interests. There are benefits of having a great credit history, including loans, and credit cards with lower rates. For someone who is realistic and unsure about the impulses to spend, no credit history comes with its own set of benefits. No credit cards means you always spend with your cash After the economic crisis, a lot of people have started following this method. In fact it was incredible to note that a large part of the population shopped for the holiday season with cash and not with credit cards. To start with, spending becomes more sensible if you have to pull out the cash from your wallet. It is easy to pay with your credit cards as you don`t really feel the pinch that much. Another thing to note is that you always stick to your budget with cash, something which people find hard when it comes to credit cards. Customers could also be misled because they might never be sure whether they would be able to pay back the expenses at the end of the month. Paying it immediately is always a more mature option than postponing it by 30 - 60 days after which they might still find it hard. No credit card history means no rewards Those with no credit history, will not find tempting credit card offers in their mailbox every single day. There are no special discounts at various stores and there are no opening bonuses for milestone expenses pushing customers to spend over 600 dollars in couple of months. This means that such shoppers will always be far more sensible with shopping. It might be possible that, they don`t save a few dollars which those with discounts and rewards do. On the other hand they save in terms of all those expenses which they have, especially when credit card holders find it hard to avoid the unnecessary expenses. No hidden charges No credit history means no credit cards, which translates to no surprises. Whether it is the pressure of spending and struggling to make the payment to avoid the late fees, or it is being tricked in going over your credit limit, no credit cards is better. One doesn`t have to worry about the over draft, because they have money.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Secured Credit Cards: November 2020 – Experts’ Choice

Top 5 Secured Credit Cards: November 2020 – Experts’ Choice

Posted: June 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… Continue reading

Top 5 Soft Pull Credit Cards: November 2020 – Experts’ Choice

Top 5 Soft Pull Credit Cards: November 2020 – Experts’ Choice

Posted: June 3, 2020

When applying for a credit card, you definitely don’t want your credit score to go down. Here, you will find the best credit cards with a soft pull from our partners. An application for such cards won’t make changes to your credit history… Continue reading

Top 5 Store Credit Cards: November 2020 – Experts’ Choice

Top 5 Store Credit Cards: November 2020 – Experts’ Choice

Posted: May 30, 2020

We evaluated store credit cards offered by our partners to find the best store credit cards. They are often loaded with perks that will allow you to save on purchases at your favorite retailer. Plus, many store credit cards are available… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!