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This may seem strange however; there are a couple of benefits associated in not having a credit history. Credit history is great as having one, allows a person to lead a normal life. In the interim however, if you do not have a good credit history nor, one at all, you need not worry. There are benefits in not having a credit history which will save you a lot of money in the long run.
The first major benefit is that unnecessary expenditure will be reduced. You will be denied credit cards or loans and hence you need not live on borrowed money. You will not get those great promotional offers and discounts that will rain down during the holidays. The best thing is that you will start spending only on things that you need. You stop relying on money that is not yours. By the end of the holiday season, you will find that you do not have any more debts because you used your own money. Saving money on unnecessary items is the first step to financial planning. Living on one’s own means is the best way to make it in life.
You need not worry about any hidden fees. There are a lot of credit card companies that promise you the moon but start charging you paltry amounts as hidden fees. As the name indicates, it is hard to pin point what these fees are since they are hidden. You need to review the terms and conditions to realize that you will be paying some fees irrespective of how you use your card. Most customers do not discuss or query the matter of hidden fees with their banks. Overtime however, such hidden fees will be added to the bank’s assets.
If you do not have a credit account, your identity will be safe. When you use your credit card online, you are most vulnerable. Having no credit cards is a blessing in disguise. You will now start using hard cash for transactions and prepaid cards if you want to play safe. And your identity will not be on the data base of any bank as you do not have a credit card in the first place.
And lastly, you will stop paying out interest on debts. You will not make debt in the first place to be able to pay the interest amount to the bank. This is a very good way of making it big with your existing sources of income. Changing your lifestyle to adopt a more sustainable one is very important. You need to realize that interest rates can accumulate and account for a huge drain on your pocket.