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.