Living With No Debt and No Credit Score

The life is possible without debts as well. The debts are however also necessary in the life and people consider it a very necessary thing in life. Many are there who simply hate the idea of the borrowing money and in return paying the interest rate to them. Life without the debt is indeed an easy thing. You can make your life easier by consulting the agencies which are giving licensed money and have good reputation as banks and licensed money lender in Singapore.

More Savings and Less Spending’s

If you are living a life without the debt then you need to pay for all the things you buy in the form of cash. The paper cash is not necessary you can also use the debit card for this issue. This is very challenging when you are looking for large number of purchases.

You will need a lot of money if you are looking to buy a vehicle without the financing. When it comes to the home the buying is even difficult. If you are not looking to borrow then you have to wait for longer period of times to buy larger things. There are some licensed money lenders in Singapore which can help you make the things better for you. You need major savings as well if you need to have higher purchases. Mostly people prefer to buy fewer things and wait for a longer period of time.

How to spend without a credit card?

– Day to day expenses: You can easily pay with the cash and debit card for all the groceries, errands and meals. Cash makes it easy for you to manage your entire budget but at the same time it is very risky to keep a lot of cash with you. The debit card gives you the ease and is linked with the checking account. However here you only spend the money you have in your account.

– Monthly bills: Mostly people are addictive to pay all of their bills like bill of the cell phone, gym membership and other utilities. You can easily switch to the online bill payment as well and your bank will send the electronic transfer. The payment from the credit card goes automatically and you can also pay the same bills alternatively as well using the debit card.

– Prepaid cards: In case you are not having a checking account then you can keep a prepaid debit card as well instead of the typical standard debit card. These types of the cards are loaded with the funds before you use them. You can use the card to pay all of your bills with a single swipe. When the balance is used the card stops working.

– Debit VS Credit cards: The debit and the prepaid cards are more risky for spending than those of the credit cards. Similarly if your card is stolen the charges paid from it will go directly from your account. Mostly you are notified by the bank and all the frauds and errors are away from them. Even then you need to contact your bank as soon as possible to minimize the risk. The problem is right in front of us that the account can be emptied at once and causing the payments bounces.

– Frozen funds: Debit cards are sometimes really problematic for you when you swipe it without knowing the exact balance in it. This problem arises most of the times when you use the card at some hotel or rent some car. The merchant will lock up the funds of your checking account. They will fall off after few days but they do cause trouble for you once. Even if you are having a lot of money in your account but the bank is not allowing you to use that money that is a big problem. You need to check your balance regularly and keep some extra cash with you as well.

– Debit card required: The best among them is the debit card which works anywhere even if the online form is asking you for a credit card number. The car reservation companies at time may ask you for the credit card at times.

However, there bound to have downside of not using a credit card. As the world is progressing into a cashless society, businesses and retailers are definitely gearing up their A game and starting to launch a cashless payment programme. In time to come, most places might end up not accepting cash anymore.

(You may wish to read: Why Do Young Singaporeans Have Credit Card Debt?)

Buying a home

Every one wishes to get their own lovely nest in Singapore. We also do know that homes cost us hundreds of thousands of dollars and we need to save a lot of money for them. Many buyers need to save money for decades to do such things. Even if you are looking to get a mortgage you need to work harder than other borrowers due to the lack of the credit.

– Alternative credit: In order to get approved for a loan you need a good credit score as well. Some of the lenders are very selective as well and they don’t want to go out of the box. This sometimes limits the type of loans available. You can look for the HDB loan which is approved by the government as well. The lenders will ask for all the documentation of the payments of your rents, insurance and other utilities. Try to pay all of your bills regularly before applying for the loan.

– Income: They will also check your income which is available to pay the mortgage. This is something very important when you don’t have the traditional credit with you.

– Reserves: Keeping a good amount of money in the bank is also very good. If you are debt free you are almost there. The more security financially means more chances of the approval.

– Stability: They need somebody who is more stable. Someone with a good history of employment is what they want. This assures them that you will earn good in the future as well. The industry in which you are working is also very important for them.

– Time to close: If you are not having the traditional credit score it is very difficult and sometimes very longer as well to get the loan. They will all of your detail and then finalize everything so if you are up to this make sure you get everything right and apply for it as soon as possible.

Should You Abandon Credit Entirely?

This does not mean to abandon the credit for once and all because they do have some serious benefits for all of us. Having a solid credit history is really good for you and helps you at almost all the places. In the end what is important is how you spend because that is going to decide everything.

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