If you’re in the midst of challenging ﬁnancial circumstances or recently had to ﬁle bankruptcy, you might have to survive without access to credit. Life is certainly easier when you have a credit card and access to loans. Living without credit requires a higher degree of creativity, but there is almost always a workable option.
Keep these facts and tips in mind if you ﬁnd yourself credit-challenged:
You probably do have access to credit, but it’s more expensive.
There are so many people with poor credit that an entire industry has been developed to address their needs. There are plenty of businesses willing to sell you a car, house, or provide a loan with very low credit requirements.
The prices and interest you’ll pay are high, but there is often credit available, provided you have a job.
You can ﬁnd a place to live.
Those nice apartment complexes might not be willing to rent to you. Fortunately, there are many smaller apartment buildings and rental homes available with landlords that never check your credit.
It may take more work to ﬁnd the right situation, but there is someone out there dying to rent their property to anyone that can pay the deposit and ﬁrst month’s rent.
You can buy a car.
Most cars today can reach 200,000 miles without a lot of drama. A $500 car with 150,000 miles on it could last another 4+ years with minimal expense. It’s a gamble, but the odds are in your favor.
Many independent car lots will sell a used car on weekly payments. The payments are relatively high, and the price of the car is high. Of course, the interest rate is high, too. But it is an option.
You can get a great job.
While many employers do run a credit check, it doesn’t really matter in most cases. If you’re in the ﬁnancial industry or will be handling money, you might be out of luck. However, the vast majority of non-professional and professional positions do not have credit requirements.
It’s more important than ever to start an emergency fund.
Many people rely on a credit card for ﬁnancial emergencies. You may not have that option. Begin building a savings account to handle the inevitable ﬁnancial hiccups that occur.
There’s not much you can’t do, even with poor credit. However, your options are limited and frequently more expensive. Credit isn’t necessary for survival. Be creative and assertive. You’ll be able to ﬁnd everything you need.