What Would Happen if Credit Cards Didn’t Exist Anymore?


Did you know that the most significant percentage of millennials have never had credit cards? Well, we might not quite point a finger trying to explain why, but whatever the reason, it has worked well for them.

You might wonder whether it is even possible to live without a credit card. Well, the short answer is: yes, it is possible.

For people who are addicted to spending, this might sound odd to live without a credit card. If you are wondering what would happen if credit cards didn’t exist anymore, here a few of our ideas.

No Credit Score or Credit History

For you to have a credit score, you must at least have an open account that has been active for at least six months. You cannot jumpstart your credit history without a credit card.

So where does this leave you without a credit card? The chances are high that you may not have any credit score. The good news is that there are several ways you can build your credit score without a credit card. For instance, if you have any loans, such as student auto loans, you probably then have a credit score.

There Would Be Less Fraud Protection

It is only credit cards that offer the most protection against fraudulent transactions. More often than not, you will have no liability over these charges, as long as they are reported within a specific time frame.

Even then, your maximum liability should be $50. On the other hand, however, you could be liable for up to $250 of debit card fraudulent charges, all depending on how late you report your case. If you are unlucky and your money gets stolen from your bank, you might never get it back.

You Miss Out on Great Credit Card Perks

Many people who use credit cards can attest to the potential offers that come along with them, provided you pay your balance on time and in full every month.

From credit card rewards to fraud protection, rental car insurance, roadside assistance, price protection, and extended warranty, all these are some of the perks you lose out on in the case that credit cards cease to exist.

Certain Transactions Would Require Extra Steps

Booking a hotel and renting a car, for instance, are some of the transactions that are easier made with a credit card. If credit cards didn’t exist anymore, you would be asked for additional documentation to prove your identity and also have to pay an upfront fee to complete the transaction.

This is one dreaded process that would easily be avoided if you had a credit card. If you are to look at it more carefully, a debit card is as good as a credit card.


There is no doubt that credit cards offer security, rewards, and above all convenience, but they are not a necessity. Even though they could quickly get approved, some people decide not to have any credit cards, and they are doing just fine. If you learn to plan, budget, and live within your means, with or without a credit card, you can still enjoy your financial life.