I really do not like using credit cards. Do any of you have a good credit score with no credit cards?

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telemark
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Re: I really do not like using credit cards. Do any of you have a good credit score with no credit cards?

Post by telemark » Tue May 14, 2019 8:28 pm

For what it's worth, I lived quite happily for decades without using a credit card: I simply never felt the need. The one card I did have was eventually cancelled because I wasn't using it. At one point I got turned down for something, I no longer remember what, and got a copy of my credit score. Somewhat to my surprise, it was zero even though I had a mortgage. The first step in answering your question would be to get a copy of your current credit score. If it's acceptable (to you), you're finished.

lakpr
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Re: I really do not like using credit cards. Do any of you have a good credit score with no credit cards?

Post by lakpr » Tue May 14, 2019 8:32 pm

telemark wrote:
Tue May 14, 2019 8:28 pm
The first step in answering your question would be to get a copy of your current credit score. If it's acceptable (to you), you're finished.
Not quite “finished”. If there are no accounts with activity, the credit score actually gradually declines, and once the 10 year mark passes when the credit report indicated the last activity on the card/account, that entry goes bye bye. So it eventually goes to zero.

jhawktx
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Re: I really do not like using credit cards. Do any of you have a good credit score with no credit cards?

Post by jhawktx » Tue May 14, 2019 8:38 pm

iamblessed wrote:
Mon May 13, 2019 10:36 pm
If so could you name what kind of loans you do have? I have three personal loans and wonder if this is enough.
Paranoia about credit cards is so 1970's. Time to move into the new century.

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iamblessed
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Re: I really do not like using credit cards. Do any of you have a good credit score with no credit cards?

Post by iamblessed » Tue May 14, 2019 9:14 pm

Electrum wrote:
Tue May 14, 2019 7:15 pm
One credit card, paid off each month. No debt of any kind. Credit score is 814.
Maybe I will go down to one. My score right now is 790 I am not looking to take out any loans. I am using a debit card. I limit what the account has in it.

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Noble Knight
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Re: I really do not like using credit cards. Do any of you have a good credit score with no credit cards?

Post by Noble Knight » Tue May 14, 2019 9:35 pm

iamlucky13 wrote:
Tue May 14, 2019 7:02 pm
No. It's because their merchant service provider charges them typically a base fee and a percentage fee that often are a major chunk of their profit margin. As a percentage, the number sounds small, but if you're a small business owner with a net margin of 20%, it literally can be as significant as losing a month's worth of income.

Also, what is archaic about it? It's a medium of exchange you don't have to rely on a third party for, with various resulting pros and cons. One of the cons is it's easy to lose. One of the pros is you're less susceptible to technology issues. Even though I was late to the game and don't use my card particularly often, I've worn out cards before and been unable to use them until a replacement arrives, and I've gotten the "sorry, our card reader is down, do you have cash?" response multiple times. I'm old enough to have worked in retail when we could fall back on an imprinter, but I gather barely any stores still have those.
Like someone else mentioned it’s to avoid taxes and to underreport earnings. Businesses can deduct the credit card fees on their taxes.

Yes you do have to rely on a third party for cash. Your employer uses technology to calculate your paycheck and then uses technology to transfer it to your bank account and then you have to use technology at an ATM to distribute the cash to you. Have you ever gone to an ATM that has a sign saying temporarily out of service or it’s out of money...I have and it’s happened more often than someone telling me their card reader is down.

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willthrill81
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Re: I really do not like using credit cards. Do any of you have a good credit score with no credit cards?

Post by willthrill81 » Tue May 14, 2019 9:35 pm

iamblessed wrote:
Tue May 14, 2019 9:14 pm
Electrum wrote:
Tue May 14, 2019 7:15 pm
One credit card, paid off each month. No debt of any kind. Credit score is 814.
Maybe I will go down to one. My score right now is 790 I am not looking to take out any loans. I am using a debit card. I limit what the account has in it.
On the FICO scale that maxes out at 850, my understanding is that it doesn't really matter to most lenders after your score reaches about 750 or so. Beyond that, it just turns into a bragging contest.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

iamlucky13
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Re: I really do not like using credit cards. Do any of you have a good credit score with no credit cards?

Post by iamlucky13 » Tue May 14, 2019 10:56 pm

Noble Knight wrote:
Tue May 14, 2019 9:35 pm
iamlucky13 wrote:
Tue May 14, 2019 7:02 pm
No. It's because their merchant service provider charges them typically a base fee and a percentage fee that often are a major chunk of their profit margin. As a percentage, the number sounds small, but if you're a small business owner with a net margin of 20%, it literally can be as significant as losing a month's worth of income.

Also, what is archaic about it? It's a medium of exchange you don't have to rely on a third party for, with various resulting pros and cons. One of the cons is it's easy to lose. One of the pros is you're less susceptible to technology issues. Even though I was late to the game and don't use my card particularly often, I've worn out cards before and been unable to use them until a replacement arrives, and I've gotten the "sorry, our card reader is down, do you have cash?" response multiple times. I'm old enough to have worked in retail when we could fall back on an imprinter, but I gather barely any stores still have those.
Like someone else mentioned it’s to avoid taxes and to underreport earnings. Businesses can deduct the credit card fees on their taxes.

Yes you do have to rely on a third party for cash. Your employer uses technology to calculate your paycheck and then uses technology to transfer it to your bank account and then you have to use technology at an ATM to distribute the cash to you. Have you ever gone to an ATM that has a sign saying temporarily out of service or it’s out of money...I have and it’s happened more often than someone telling me their card reader is down.
I'm sure that is one of the motives for many businesses, and I have been told as much by servers who prefer cash for tips, but the scale of the fees alone would be ample motivation.

I think it was reasonable to recognize that the intended scope of my comment about third parties was specific to brokering the cash transactions in question, not those that although part of the chain enabling said transactions are with separate parties at separate times. Regardless, please accept my clarification.

I recall a single instance of an ATM being out of service, leaving me to use another ATM a block or two away. Not having cash on hand is a known constraint on my purchasing, however, just like being at my credit limit. It's just something you plan for when deciding to make a cash transaction. I would say it's less easy to plan for the other party being unable to take a card.

Pragmatically speaking, I can use either cash or card as fallbacks for each other. I don't advocate either exclusively. If you read my post as critical of your clearly strong preference for credit cards, that wasn't my intent. I simply don't understand the characterization of cash as archaic.

I might as well add that cash is also convenient for many private party transactions, although I know there are other options available*. Others use cash as a spending control aid, since it is easy to visualize how much they are spending or have left, or even categorize their spending (eg - the envelop method).

* Fun Trivia: I have a friend who actually accepts credit card payments for things as mundane as friends paying him for covering their share of a restaurant bill. As far as I know, he does this purely because he was amused by the fact that he could get a credit card reader and merchant account for his iPhone, and gets more than enough entertainment from interjecting it into social situations like that to justify the fees. :mrgreen:

lkar
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Re: I really do not like using credit cards. Do any of you have a good credit score with no credit cards?

Post by lkar » Wed May 15, 2019 12:06 am

There is a reason credit cards are big business.

If you pay off your credit cards on time, they represent free loans with 30 day float and provide sign up bonuses and cash back in the form of straight cash or valuable rewards. They provide travel insurance or access to lounges or free baggage or companion passes or purchase protection or car rental coverage or several of the above. All for nothing on the consumer’s part if used responsibly.

But that’s the big if. Credit card companies would go out of business fast if it weren’t for that big if.

It’s easy to judge those who have trouble managing their financial affairs when they have one or several easy to access loans in their pocket of thousands of dollars. For those smart enough to recognize they are susceptible to this potential issue and who stay away from credit cards, I say good for you. I can’t imagine not having credit cards. I go weeks without touching cash. But I don’t doubt for a second there are some who are better able to manage their finances without credit cards. Good for them for knowing what works.

mhalley
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Re: I really do not like using credit cards. Do any of you have a good credit score with no credit cards?

Post by mhalley » Wed May 15, 2019 7:09 pm

Debit cards are SO much riskier than cc that I had my bank cancel the fake visa and just issue me an atm card.

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