In the United States, your credit score is viewed as a crucial piece of your financial information. You need a good score if you want to open a credit card or get a loan of any kind. Often, landlords and even employers will ask for your credit information. Many Americans don't think you can get by without using credit, but is that really true?


You can have the life you want without ever having to worry about credit cards and credit scores. It might be a little more of a hassle to apply for an apartment or get a loan, but it is completely feasible.

The main thing you want to do is save money. Always set aside a portion of your paycheck for your savings account. This is a good practice for basically everyone, but you'll need a decent savings if you want to live without credit. This isn't just to cover monthly bills or emergency expenses. You can use your savings to prove that you can cover a loan or a car payment.

Typically, when you apply for a new apartment, you will be asked for your monthly or yearly income and maybe also your credit score. If you don't have credit, you won't have a credit score. This makes it hard for the landlord to determine if you are trustworthy to pay rent on time. If you've already rented an apartment, you can ask your previous landlord for payment history. You can show this to the new apartment complex to demonstrate that you're good for the rent. If that doesn't work, you might have to pay a bigger deposit. This could be as much as half or all of a month's rent. If you have a nicely sized savings, then you should be able to cover it with little issue.

The same goes for getting a loan. If you've paid back previous loans on time, then show those records to the bank. This might help lower your interest rate. In combination, your savings will also help you pay down the loan much faster than the typical borrower. Additionally, taking out a small personal loan and paying it back quickly can help you build your credit without having to open a credit card.

If you're looking to buy a house, your credit score will be a big factor. Unless you've saved enough to buy the house outright (which is highly unusual), you'll probably be taking out a mortgage loan. To get the best interest rate, your down payment will need to be at least 20 percent of the cost of the house. If you can pay more than that, all the better.

Lastly, instead of charging an expensive purchase to a credit card, wait until you have enough money to cover it outright. You might not be able to get that flatscreen HD TV right away. This prevents you from paying interest on the purchase. Even if you only take a few months to pay off the credit card balance, you would still be paying hundreds of dollars more than the cost of the item. Better to keep that money in your savings.

Living without credit is completely doable, if a little annoying at times. You'll probably need to produce extra paperwork or pay a bigger deposit if you don't have a credit score. Even in America, you absolutely never have to open a credit card if you don't want one.

PayPath
Follow Us on
Photo by Nubelson Fernandes via Unsplash

I’ve been feeling very British lately. Not in a Union-Jack-obsessed, “Keep Calm and Carry-On” way. I went through that phase in 2012 with everyone else… no thank you. And it’s not even a surge of patriotism catalyzed by the Queen dying — I’m firmly team Diana and team Meghan.

Keep reading Show less

Southwest Airlines Sale 2022

Photo by Trac Vu on Unsplash

Pack your bags — Southwest Airlines is having a major sale! Fares are as low as $59 one-way if you book by October 3rd.


This end-of-summer super sale is a game-changer for your travel plans through the end of the year. Summertime travel gets all the glory. But why not take advantage of your long weekends, holidays, and PTO this fall. You’ll be surprised at how much travel you can fit in. Keep the fall/winter season exciting with domestic trips that give you all the excitement without breaking the bank. All thanks to Southwest.


Keep reading Show less

Quiet Quitting is the latest trend among Gen-Z TikTok that encourages setting boundaries at work

Unsplash

Toni Morrison has an anecdote about her first ever job, which was cleaning some neighborhood woman’s house. The young Toni arrived home after work one day and expressed her troubles to her father. But he didn’t provide the sympathy she expected. Instead, he gave her something better — his advice:

“Listen. You don’t live there. You live here. With your people. Go to work. Get your money. And come on home.”

Years later, she wrote about this remarkable experience for the New Yorker and said, in hindsight, this is what she learned:

1. Whatever the work is, do it well—not for the boss but for yourself

2. You make the job; it doesn’t make you

3. Your real life is with us, your family

4. You are not the work you do; you are the person you are

What Morrison so eloquently articulated was setting boundaries. I revisited this piece during the pandemic when working from home ramped up in earnest. Back when work was one of the few things that anchored my day.

Without a physical office, the pandemic shattered the work/life balance for many people. There was no more of that physical separation that Morrison talked about. There is no coming home from work physically. There is no real life to come back to — just a manufactured commute to your laptop in your makeshift home office.

But, par for the course, Gen Z are navigating this boundaryless era using TikTok. While internet gurus promote hustle culture and constant online availability since you’re not getting face time with your managers, there’s a trend in town — “quiet quitting.”


@zaidleppelin On quiet quitting #workreform ♬ original sound - ruby


The trend arose from the depths of the pandemic. Layoffs, salary cuts, and furloughs proved that their employers did not care about their hard-working employees.

The Washington Post dubs quiet quitting as a fresh trem for an old phenomenon: employee disengagement. In many cases, it’s a response to burnout. For much of Gen Z, it’s a way of establishing healthy boundaries in the office and resisting the pressure of the rat race. After all, why work yourself to the bone for a company that just proved it’s ready and willing to let you go?

Despite the term’s negative connotations, Quiet Quitting can provide an empowering shift in thinking for employees.

For far too long, employees have been indoctrinated with a slew of toxic workplace advice. Faced with these old misconceptions and lacking job security or clear paths for advancement, Gen Z is untethering their identities from work.

Quiet quitting — therefore — might be a bit of a misnomer. These employers aren’t completely disengaged. They’re certainly not launching Flight Club-esque sabotage attempts on their employers. NO. Contrary to media panic, Gen Z understands the value of a job — the fickle market they entered ensured that. But they also understand the value of life.

They’re doing what they’re being paid for. Nothing more, nothing less.

According to Chief, a private membership network focused on connecting and supporting women executive leaders, older generations should learn from this approach.

“Gen Z has already endured the largest seismic shifts to the career landscape than any previous generation, having started their careers in the middle of a pandemic that changed office culture forever and a gig economy that makes piecing together work more viable. They’re taking both those realities and therefore demanding more autonomy and flexibility than any other generation.”

Gen Z are less attached to job titles and statuses. They’re more concerned about their lives. Sure, this can lead to problematic outlooks on money and experiences — see the “I can earn my money back” TikTok trend. But it’s better than hustling for no reward. Besides, as some Gen Z-ers put it on TikTok, the office isn’t even a vibe.

“With the ability to work from anywhere and for more than just one place, Gen Z-ers are forging their own paths that don’t rely on old patterns set by previous generations and are redefining what “career success” looks like. Gen Z can take note, as more and more leaders are similarly pursuing multiple income streams of their own through the form of a portfolio career. The way in which work looks like and where it happens is evolving.”

With less single-minded focus on one job, some TikTok business gurus advocate shutting your laptops precisely at 5 pm. And then jump onto your side hustle. Do nails or lashes on the weekend. Become social media managers for your phone. Sell soap on Etsy (again … perhaps not in the Fight Club way).

But this valorization of side hustles is not about hustle culture, either. They say job security isn’t guaranteed. Learning new skills and develop an alternate income stream/s to keep you afloat. Just make sure you’re not left in the lurch. BTW inflation is here. So every little bit helps.

But where do you start? Watching TikToks can only get you so far. Try a course on LinkedIn Learning to sharpen up your skills and learn new ones that you can turn into a verifiable side hustle — or leverage in your job search if quiet quitting leads to … real quitting.

Learn on your own time with bite-sized videos or in-depth courses. Watch them after work, before you clock in, or on your lunch break. Then, after your courses are complete, you’ll have certificates prominently displayed on your profile that prove your skills.