Comments on: How To Live Debt Free With No Credit http://thesmarterwallet.com/2009/debt-free-no-credit/ Money Tips, Consumer News and Product Reviews To Improve Your Finances Tue, 07 Feb 2012 05:52:20 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Gary D. http://thesmarterwallet.com/2009/debt-free-no-credit/#comment-28925 Gary D. Tue, 07 Dec 2010 23:52:11 +0000 http://thesmarterwallet.com/?p=7164#comment-28925 My wife and I live debt free and both have high credit scores from past credit. Last I checked, mine was 810, hers in the high 700's. We use credit cards periodically when traveling, but pay them off immediately. I do all my bills on-line, so it is an easy click to pay off anything every month. She is retired; I am still working for awhile longer. Living debt free is hassle free, worry free, painless, drama free. I recommend it highly. Lots of good stuff on here, by the way if anyone else is considering what is to me a life style. We just threw our annual Christmas party for 50 of our friends with 2 bartenders and all the goodies, because we can. My wife and I live debt free and both have high credit scores from past credit. Last I checked, mine was 810, hers in the high 700′s. We use credit cards periodically when traveling, but pay them off immediately. I do all my bills on-line, so it is an easy click to pay off anything every month.

She is retired; I am still working for awhile longer. Living debt free is hassle free, worry free, painless, drama free. I recommend it highly. Lots of good stuff on here, by the way if anyone else is considering what is to me a life style. We just threw our annual Christmas party for 50 of our friends with 2 bartenders and all the goodies, because we can.

]]> By: The Smarter Wallet http://thesmarterwallet.com/2009/debt-free-no-credit/#comment-22484 The Smarter Wallet Mon, 23 Aug 2010 02:58:07 +0000 http://thesmarterwallet.com/?p=7164#comment-22484 @Michael the Banker, Thanks, that's some awesome advice you gave. I'm actually all for being debt free but at the same time, being smart about using credit. I think that knowing how to manage your credit and debt this way is smarter than maintaining an only cash existence, because you keep your options open. @Michael the Banker,
Thanks, that’s some awesome advice you gave. I’m actually all for being debt free but at the same time, being smart about using credit. I think that knowing how to manage your credit and debt this way is smarter than maintaining an only cash existence, because you keep your options open.

]]> By: Michael the Banker http://thesmarterwallet.com/2009/debt-free-no-credit/#comment-22355 Michael the Banker Sat, 21 Aug 2010 18:52:14 +0000 http://thesmarterwallet.com/?p=7164#comment-22355 Yes, you can have a zero score. I work at a bank and run people's credit every day. If there is no activity (credit card usage, car loans, mortgages, etc) then there is no information for your creditors to report to the Experian, Equifax or Trans Union. I commend the spirit under which the author has written this article. Yes, debt can be a bad thing. However, the peril of not having a credit score is that if and when you do need to borrow money, don't be surprised if you get turned down. Unfortunately, we are all numbers when it comes to borrowing money. Banks and other institutions scrutinize borrowers more now than ever. Your credit score also places you into a "credit tier" which will determine the interest rate on your loan. Currently, I am debt free and continually saving money. However, I do use credit cards and don't carry a balance. The benefits? Rewards...Over the years, I've earned cash back, hotel points and airline miles. These rewards have subsidized a lot of my vacations so that's why I use them. Convenience...It's easy to have your cell phone bill, car insurance, etc all directly billed to your credit card and at the end of the month, just pay it off. Yes, you can have a zero score. I work at a bank and run people’s credit every day. If there is no activity (credit card usage, car loans, mortgages, etc) then there is no information for your creditors to report to the Experian, Equifax or Trans Union.

I commend the spirit under which the author has written this article. Yes, debt can be a bad thing. However, the peril of not having a credit score is that if and when you do need to borrow money, don’t be surprised if you get turned down. Unfortunately, we are all numbers when it comes to borrowing money. Banks and other institutions scrutinize borrowers more now than ever. Your credit score also places you into a “credit tier” which will determine the interest rate on your loan.

Currently, I am debt free and continually saving money. However, I do use credit cards and don’t carry a balance. The benefits?

Rewards…Over the years, I’ve earned cash back, hotel points and airline miles. These rewards have subsidized a lot of my vacations so that’s why I use them.

Convenience…It’s easy to have your cell phone bill, car insurance, etc all directly billed to your credit card and at the end of the month, just pay it off.

]]> By: Esteban http://thesmarterwallet.com/2009/debt-free-no-credit/#comment-21174 Esteban Fri, 23 Jul 2010 15:45:41 +0000 http://thesmarterwallet.com/?p=7164#comment-21174 What-ever: Fico goes to zero OR can't go to zero. My wife and I live debt free. This after, borrowing up to my yearly salary (Ok more than my yearly salary) in credit card loans, auto loans. We finally had enough. I use to worry about meeting our payments each month. Around the 15th of each month, I would start figuring how we were going to pay the cards. No more. We finally forgot about worrying about our FICO. We closed all are credit card accounts, except one that had a $1,000 limit and a low interest rate. We paid off all the accounts and now each month we sock a away more funds. What-ever: Fico goes to zero OR can’t go to zero. My wife and I live debt free. This after, borrowing up to my yearly salary (Ok more than my yearly salary) in credit card loans, auto loans. We finally had enough. I use to worry about meeting our payments each month. Around the 15th of each month, I would start figuring how we were going to pay the cards. No more. We finally forgot about worrying about our FICO. We closed all are credit card accounts, except one that had a $1,000 limit and a low interest rate. We paid off all the accounts and now each month we sock a away more funds.

]]> By: Robert Baylosis http://thesmarterwallet.com/2009/debt-free-no-credit/#comment-20910 Robert Baylosis Sat, 17 Jul 2010 10:32:50 +0000 http://thesmarterwallet.com/?p=7164#comment-20910 It's nice to know that there are folks like you who live debt free. That is our goal too, to be debt free. After buying a house and have it foreclosed after more than a year paying for it, we are in a hole. Your article just gave us an inspiration to move on an pay for all our debt and start living a debt free life. It’s nice to know that there are folks like you who live debt free. That is our goal too, to be debt free. After buying a house and have it
foreclosed after more than a year paying for it, we are in a hole. Your article just gave us an inspiration to move on an pay for all our
debt and start living a debt free life.

]]> By: KeithTax http://thesmarterwallet.com/2009/debt-free-no-credit/#comment-20890 KeithTax Sat, 17 Jul 2010 02:44:39 +0000 http://thesmarterwallet.com/?p=7164#comment-20890 I think this should be cleared up. A FICO can never go below 300 or above 850. My grandfather has never borrowed money in his life and is 89 years old. When we did his estate plan the bank pulled his credit score and it was 775. The banker told me that FICOs tend toward the upper 700s for people that never use debt. The reason this may be true is that banks pull your credit score when you open deposit accounts. I found this out when I open my health savings account. As I signed the paperwork the banker informed my my FICO was just over 800 and I use no credit either. I was a little irritated because they pulled the report and never told me until after they did it. Therefore, this unfounded fear that living debt-free will hurt you worse than bad credit habits is an urban legend. You can still buy a house, rent an appartment, etc. Now, young people with no credit history will have a difficult time getting a mortgage. But then again, I paid cash for my first home. It was small, but I made payments to me instead of the bank. Living debt-free is great. The economy suffers, yet my lifestyle has not changed. Find an old person that lived through the Great Depression and learn their savings habits and you will do okay. I think this should be cleared up. A FICO can never go below 300 or above 850.

My grandfather has never borrowed money in his life and is 89 years old. When we did his estate plan the bank pulled his credit score and it was 775. The banker told me that FICOs tend toward the upper 700s for people that never use debt.

The reason this may be true is that banks pull your credit score when you open deposit accounts. I found this out when I open my health savings account. As I signed the paperwork the banker informed my my FICO was just over 800 and I use no credit either. I was a little irritated because they pulled the report and never told me until after they did it.

Therefore, this unfounded fear that living debt-free will hurt you worse than bad credit habits is an urban legend. You can still buy a house, rent an appartment, etc. Now, young people with no credit history will have a difficult time getting a mortgage. But then again, I paid cash for my first home. It was small, but I made payments to me instead of the bank.

Living debt-free is great. The economy suffers, yet my lifestyle has not changed. Find an old person that lived through the Great Depression and learn their savings habits and you will do okay.

]]> By: Taylor http://thesmarterwallet.com/2009/debt-free-no-credit/#comment-17243 Taylor Thu, 08 Apr 2010 12:16:56 +0000 http://thesmarterwallet.com/?p=7164#comment-17243 I'm planning to live with less dependence on credit cards. This helps a lot, at least to inspire me to get started. Thanks for the great post! I’m planning to live with less dependence on credit cards. This helps a lot, at least to inspire me to get started. Thanks for the great post!

]]> By: April http://thesmarterwallet.com/2009/debt-free-no-credit/#comment-15362 April Fri, 19 Feb 2010 17:11:05 +0000 http://thesmarterwallet.com/?p=7164#comment-15362 We have lived debt free for 5 years. No car payments. No credit cards. Freedom. Eye-opening. Feels like we've crossed over to the dark-side so to speak... people make fun of us, say that we're not realistic, but then later ask us for advice. We have lived debt free for 5 years. No car payments. No credit cards. Freedom. Eye-opening. Feels like we’ve crossed over to the dark-side so to speak… people make fun of us, say that we’re not realistic, but then later ask us for advice.

]]> By: Brianna http://thesmarterwallet.com/2009/debt-free-no-credit/#comment-14941 Brianna Fri, 05 Feb 2010 07:13:41 +0000 http://thesmarterwallet.com/?p=7164#comment-14941 I can't believe how uniformed most of the world is. Of course your score will drop to zero after seven years of not using any credit -- there is nothing to report! I am 20 years old and debt free- the only money I ever plan to borrow is for a mortgage. I know some landlords check credit, but I believe this won't be an issue for me while I am renting before I purchase my home. It's simple -- I pay for a full year's rent up front, and then 1 month before the year lease is up I can pay upfront for another year's rent! It only makes sense to me that I should also be able to get a discount doing this! Keep spreading the word, maybe a few more people will catch on! I can’t believe how uniformed most of the world is. Of course your score will drop to zero after seven years of not using any credit — there is nothing to report! I am 20 years old and debt free- the only money I ever plan to borrow is for a mortgage. I know some landlords check credit, but I believe this won’t be an issue for me while I am renting before I purchase my home. It’s simple — I pay for a full year’s rent up front, and then 1 month before the year lease is up I can pay upfront for another year’s rent! It only makes sense to me that I should also be able to get a discount doing this! Keep spreading the word, maybe a few more people will catch on!

]]> By: Nesta http://thesmarterwallet.com/2009/debt-free-no-credit/#comment-14462 Nesta Fri, 22 Jan 2010 08:11:40 +0000 http://thesmarterwallet.com/?p=7164#comment-14462 I really wasn't going to comment here because I've known a lot of articles on the internet to be nothing but fluff. But nice job. You really have common sense. That's what seems to be lacking in our hi-tech world. I really wasn’t going to comment here because I’ve known a lot of articles on the internet to be nothing but fluff. But nice job. You really have common sense. That’s what seems to be lacking in our hi-tech world.

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