Can you live without credit?

Getting a loan may become harder. Most people are unable to pay for big purchases (such as a house or vehicle) in cash and will need to take a loan for it. Without any credit history or score, it’s incredibly difficult and complicated to get loan approval from banks or lenders.

No access to credit for emergency use. If you need funds urgently and don’t have enough cash to cover the emergency (such as for medical treatment) having a credit card is very helpful and convenient, and can help you get things sorted faster with less hassle.

Travelling can become a hassle. Without a credit card, even simple things such as trying to book a hotel or rental car in advance can become problematic. You’ll need to do a lot of planning ahead, such as checking if your debit card is accepted in places you plan to visit. You may also need to carry large amounts of cash on you and have enough spare cash in your bank account.

Trying to find a place to rent can be difficult. Searching for rental housing can become stressful as many rental agencies refuse applicants who don’t have credit history and credit score. Others may ask for more money as a deposit or insist that you find a cosigner or guarantor.