Moneyadviceblog » Credit Score » 5 Benefits of Living Without Credit

As we discovered in a previous article, which you can read here, it is quite possible to live without credit, without impacting your ability to enjoy the finer things in life. Now that we know that you can rent or buy a house, travel and much more without the help of your credit card, let’s look at some of the benefits that come from living credit free. This article will cover the top five benefits, but there are many more reasons that you can probably think of without much effort. Without further ado, let’s dive in:

1. You’re no longer enslaved to a life of debt.

When you’re not enslaved to your credit score (or your credit cards for that matter), you’re no longer worried about payments for things you’ve purchased in the past—or worried about how you’re going to pay for your future. Not only that, you’re also free. You’re free to spend your money on the present and save for the future.

2. Your bank account becomes your measuring tool.

If you haven’t heard, the FICO score is just another name for the “I love debt” score. Think about it: Businesses, banks and even the government use this silly little number to analyze your past and present relationship with debt. But when you choose to leave all care about your score behind, you get to measure things by what you actually have in your bank account (and what you can afford).


3. You’re in complete control of your finances.

Like we’ve said before: Cash is king, baby! When you start saving up for life’s big purchases (to pay in cash), you’ll find that a credit score is worthless. Not only will you have the power of negotiation on your side, but you’ll also find out how much easier it is to buy things outright. Who’s going to turn down cash?

4. You’re less likely to overspend.

When you’re not relying on a credit card for “emergencies,” you have one option: to pay for things with the money you have in your bank account. When your money is gone (or spoken for with your zero-based budget), you’re done spending. Living life without credit means you know exactly what it’s like to live within your means—and it feels good.

5. You’ll build wealth and give generously.

When you’re debt-free and you’ve reached Baby Step 7, you can finally start living and giving like no one else. Baby Step 7 is all about building wealth and giving. Yup, that dream retirement you and your spouse have been working so hard for is finally at your fingertips. Maybe you’ve always wanted to travel overseas to help a non-profit organization or give 50% of your earnings to charity every year. The options are endless, because you’re not tied to making payments every single month. Instead, you get to dream of what it can be like to use your wealth to help others. And that feels good.

You Can Live Without a Credit Score!

Our culture will tell you otherwise, but living without credit is possible! Sure, sometimes it might feel a little inconvenient because of the way our culture has embraced the “almighty” FICO. But seriously, living without a credit score will never be as inconvenient as paying interest on that fancy steak dinner you ate… last year.

So, what are your thoughts? Has this article shown you the benefits of living within your means and not relying on plastic? Sound off in the comments below, and let us know if you can think of any other benefits to living debt-free.