Some people blow off the concept of credit history and credit scores because they don’t plan to use credit. Living without credit is possible. There are growing numbers of people in this society who have chosen this path.
Certainly, debt has its demons. Starting a credit line can be a dangerous path. Still, no matter what your personal feelings are… society has begun to rely on credit scores to determine just how responsible you are in everything. This means, even if you never plan to take a loan or open a credit card, your credit history (or lack there of) can still affect you.
As credit reports are often an easy way background check someone, many companies are starting to rely on what they find to evaluate you. It could be your insurance company looking at your credit score to determine your rate. It could even be a future employer checking you out before an interview. Your credit will follow you places you may not even imagine.
What to do if you have no credit and see no need to start with debt? Keep your goals, but still work on establishing some good credit history. If you are smart enough to have avoided debt this far, you are talented enough to open up a credit card and not incur any debt. You don’t have to ever have even a dollar of debt and you still build your credit.
Regularly using a credit card and paying it off is one of the best ways to build a solid credit history. You could just have some of your bills automatically paid by a credit card and then pay the statement off each month. The goal will be to start a history and keep it going as long as you can. Build your credit limits, only using a small percentage of what you have, and in no time you will have a golden credit score. A score providing you the best car insurance rates and possibly that cool new job.
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