Did you know that a significant percentage of millennials don’t have credit cards? Though there are many theories as to why that may be, whatever the reason, it has worked well for them.

Credit cards have become so ingrained in the economy that they often seem crucial to everyday life. You might wonder whether it is even possible to live without a credit card there days.  Well, the short answer is: yes, it is possible.


For people who are addicted to spending, it might sound odd to live without a credit card. If you are wondering what would happen if credit cards didn’t exist anymore, here a few of our ideas.

credit cards

1. No Credit Score or Credit History

For you to have a credit score, you must have an open account that has been active for at least six months. You cannot jumpstart your credit history without a credit card.


So where does this leave you without a credit card? The chances are high that you may not have any credit score. The good news is that there are several ways you can build your credit score without a credit card. For instance, if you have any loans, such as student or auto loans, you probably have a credit score.

However, having a credit card is an important factor that is considered when you are applying for loans. It may be very difficult to get a loan without an existing credit score. Even if you use it infrequently, opening a credit card is important for building credit.

2. There Would Be Less Fraud Protection

Only credit cards offer the most protection against fraudulent transactions. More often than not, you will have no liability over these charges, as long as they are reported within a specific time frame.

Even then, your maximum liability should be $50. On the other hand, however, you could be liable for up to $250 of debit card fraudulent charges, all depending on how late you report your case. If you are unlucky and your money gets stolen from your bank, you might never get it back.

3. You Miss Out on Great Credit Card Perks

Many people who use credit cards can attest to the potential offers that come along with them, provided you pay your balance on time and in full every month.

From credit card rewards, fraud protection, rental car insurance, roadside assistance, price protection, and extended warranty, credit card rewards are ample. When you spend money without using a credit card, you are missing out on these perks.

4. Certain Transactions Would Require Extra Steps

Booking a hotel and renting a car are some of the transactions that are easier made with a credit card. If you do not have credit cards you will be asked for additional documentation to prove your identity. You will likely have to pay an upfront fee to complete the transaction. This is one dreaded process that can easily be avoided if you have a credit card.

5. You Can Only Purchase What You Can Immediately Afford.

Without a credit card, you only have access to the money that is in your bank account in that particular moment. This can be a problem when large, unexpected expenses arise, like a car repair or medical bill. Using credit cards is essentially like an automatic loan. They allow you to spend more money than you currently have and pay it back later.


There is no doubt that credit cards offer security, rewards, and above all, convenience. However, more and more people are finding that they are not a necessity. Even though they could quickly get approved, some people decide not to have any credit cards and they are doing just fine. If you learn to plan, budget, and live within your means, with or without a credit card, you can enjoy your financial life.