Someone loves to use cash, but they don't have any credit history

United States
September 7, 2010 3:15pm CST
I knew some people, at least a friend of mine, who likes to pay everything in cash, instead of loan, or credit card. I admired him, at least he doesn't have to carry any debt I do. He bought a house, and pay it off with cash, that was super amazing. But, recently he wants to do a home improvement on that house, he can't apply for a single loan, due to he doesn't have credit history. So, person who always use cash will be disappear from the credit world. Is that a bad thing or good thing?
1 person likes this
8 responses
@natnickeep (2340)
• United States
7 Sep 10
I think that just depends on what you plan on attaining in life. Some people only use cash because they don't like the government. They feel loans and debt is another way to be controlled. I use mostly cash because my credit is already poor. But I am glad I don't have a mortgage or car payment. At rough times those type of things can really put you in a bad spot. I would rather just worry about rent, utilities and keeping gas in my used Honda hehe.
• United States
7 Sep 10
I mean cash is not a bad thing. On some occasion, it is safe to use cash rather than credit card or other electronic transactions, due to many scams and advance technology out there to con you. At some extreme case, just like my friend here, he probably in need of loan to improve his house, due to his nonexistence on this credit world, they won't approve him.
@bird123 (10518)
• United States
11 Sep 10
There are credit card companies who have cash back programs. You get cash back for purchases. If you pay the bill in the grace period there are no interest charges. One makes money and builds credit history just by using the card. That's better than cash.
• Philippines
8 Sep 10
i guess i prefer doing it, my mom just recently had problems with credit cards, and realized that there are some hidden charges. so i guess if u can pay cash, why use credit card, its more comfortable not thinking of additional bills for the next month :)
@mimining (204)
• Philippines
8 Sep 10
Perhaps if he tried to make a loan for house improvement and used his house as collateral, the bank would have issued him one. A person without credit history can still apply for credit but only for a small credit ceiling, as a start. They don't disappear, my friend, they just start from scratch.
@Porcospino (18396)
• Denmark
8 Sep 10
In my daily life I always use cash instead of creditcards. That way it is easier for me to keep track of the money that I spend. My friends sometimes ask me why I don't use creditcards instead of carrying cash, but I am afraid thar I would spend too much if I use creditcards instead of cash. I couldn't imagine buying big things like a house without a loan though. Of course it would be nice to be able to pay for a house in cash, but I don't think that will ever be a realistic option for me.
@p3ks626 (6550)
• Philippines
8 Sep 10
I dont use credit card. I also didnt apply for it and I also dont have any plans in doing so. I always use cash when I buy something even if I buy something that is expensive. Not that I am rich but because I dont want to burden myself in paying the interests for purchasing something using a credit card.
@julyteen (13259)
• Davao, Philippines
7 Sep 10
I am not dependent of cash I also used credit. Better to used both because not all the time you can used cash. i love using my credit card to avoid counting you money infront of the cashier. You can walk with no worried because if you bring cash you are pron to bad guys who happened alot of it around you. I spend only below my limit that I know I can pay it every closed of the month.
@eunelle (25)
• Malaysia
7 Sep 10
people who don't want any debt is actually admirable, but of course its one in a million... i don't discourage people to use credit card as long as you are a prompt payor/payer and don't want to shoulder any burden of interest from what you loan. Its a headache thinking about bills/debts to be paid...