What are the benefits of no credit history?

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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.
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