Credit cards are everywhere and millions of businesses around the world prefer to do business with those that are willing to use their credit card immediately. Those that choose not to or aren’t able to get a credit card often feel as if they don’t have many choices in doing business or getting things done. That is not true.
While having a credit card is something that is preferable to millions of people, there are others that have found life without one is just as satisfying. There are many different financial options available for those that don’t want to use a credit card.
The Alternatives to a Credit Card
Those that choose not to use or have a credit card still have financial options available. These options allow them to shop securely online, apply for and obtain loans when necessary.
1. Debit Cards- Debit cards give account holders direct access to the money they have. Debit cards are not extensions of credit. People that have a checking account are normally given the option to have a debit card sent to them so they don’t have to write checks or use cash for their purchases. Most debit cards now have the logo of a major credit card company so that merchandisers will accept it without many fees.
2. Prepaid Credit Cards- In recent years, there the use of prepaid credit cards has soared. Prepaid credit cards can be bought at most local retailers and money will be loaded onto the card at the register. There is no credit check, extension of a loan or anything. The only money available to spend is the money that is loaded onto the card.
3. Bank Overdrafts- There are times that emergencies happen. During those times, if someone doesn’t have all the money necessary to have the problem fixed, they are forced to bounce a check. For those that are approved for bank overdraft protection, their checking account won’t be ruined.
*Bank overdraft protection is normally a small loan that is extended to cover a check if enough funds are not available up to a certain amount. There is normally a fee for using this service each time the account has been overdrawn but many find the fee is more acceptable than losing their bank account.
4. Traditional Loans- When times are hard and people need more money, traditional loans are still available. Instead of depending on the use of credit cards, those that have a major expense can apply for a loan through traditional lenders such as banks and credit unions.
Living without credit cards isn’t something that many people do but it can be done. Millions of people that choose to depend on credit cards quickly find they are overwhelmed with debt because they consistently charge items. Living without credit cards can lead to lower debt and better money management skills.
Living without credit cards may be hard but it’s something that can be done. Growing dependent on a credit card to maintain daily living habits can destroy a secure financial future quickly.