What You Can’t Do Without Credit

The consequences are not what you would expect

What if you reject credit entirely? What are the consequences? It turns out there are a few things you can’t do without credit. Take a look at the list and see for yourself.


Note: Common myths have been corrected in the list below.

Without credit cards, credit history, or a decent FICO score, you will not be able to:

  • BUSTED: Buy a house
    Instead, you will have a hard time getting a mortgage with a typical bank. Churchill Mortgage will help you get a home loan with no credit.
  • Get the lowest interest rates on loans
    This is not important if you’re staying out of debt.
  • Get the lowest home and auto insurance rates
    This one may actually be correct. If you know how much it affects rates, tell us about it!
  • BUSTED: Get a job
    Though some employers do run credit checks on applicants, this won’t be the reason you don’t get hired.
  • BUSTED: Buy a new car
    Instead, expect worse financing terms on your car loan. Your interest rates will be high, but they will gladly take your money. Or, you can always pay with cash….
  • BUSTED: Rent a car
    Budget will happily rent you a car with a debit card.
  • BUSTED: Get an apartment
    Expect some apartment complexes to turn you down. Instead, look for someone who will rent to you based on your income and payment history. This is annoying, but consider it a good reason to live somewhere else.
  • BUSTED: Be secure from fraudulent purchases
    To access the exact same liability protection you get with credit cards, simply make purchases on your debit card as credit. Done!

That’s about it.

Now let’s narrow it down to just the reasons which have any real substance. Here is the revised list of things you can’t do without credit:

  • Get the lowest interest rates on loans
  • Get the lowest home and auto insurance rates


By avoiding credit altogether, you agree to higher interest rates than if you had a “good” FICO score. And your insurance rates might be higher, too.

Wait a minute. With all of the hype about credit these days, that’s the worst we should expect?! Is that it?! We’ve been afraid of not maintaining your FICO score and these are the consequences?

Kinda disappointing, isn’t it.

If that’s all that would happen, let’s just see how far you can get without credit. (Wife and I are going on 6 years!)

Sounds like you might be just fine….

How does this change how you think about credit?

  • Jackie

    I was glad to find this post. I don’t know many people who try to live credit card free! I’ve made some poor decisions with credit cards in the past and I am going to steer clear from now on out. I won’t get some of the perks such as frequent flyer miles or cash back, but I will survive!

    • Glad to hear from someone else who feels similarly! Isn’t it shocking how rare it is to live debt free? There’s so little to go wrong that way.

      You’ll do just fine. After 6 years of living without the “perks” of credit cards, I don’t miss them.

  • Pingback: Why Do You Need Credit? | Leadership Vacuum()

  • Mike

    You forgot the most important thing…. Freq flyer points. Just pay the balance In full every month and upgrade all yor flights to first class.