I don’t have any credit cards or any debt. I live on cash. Is this a bad thing?

January 22, 2014

Congratulations on being completely debt-free! However, in today's world, this could actually hurt you in the future. Without credit cards or any liabilities, you will not have a credit history; it is that history lenders use to decide if they want to give you a loan. If you ever plan on buying a home, a car or applying for a business or personal loan, you need the payment history that comes with owning and using a credit card. However, it is important to use credit cards wisely and to understand your credit. To establish a good credit history, get a major credit card. Then just make a few small purchases a month, only about 30-50 percent of your credit limit. Then pay it off in full every month.

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