Off the Credit Edge: What to do Without a Credit Card

Credit and information management leader (PQ) estimates that over 5 million consumers discontinued use of general purpose credit cards over the past year. This is in addition to the approximately 70 million active consumers who were not using credit cards in 2017. These estimates come along with the knowledge that the credit card delinquency rate (defined as the percentage of bankcard borrowers 90 days or more overdue on one or more credit cards) decreased by 24.6 percent over the past year.

According to PQ, this is because consumers are being more conservative in their spending in order to maintain good relationships with banks and credit card companies. In other words, consumers want to avoid overdrafting, late credit card payments and defaulting on traditional loans, so they’ve simply stopped using these banking techniques. Others may already have bad credit or other financial hardships and are unable to access these lines of credit. In this economy, all kinds of people from many different walks of life have dropped off the credit card cliff and are looking for options to hang on to.

We know that these consumers are in need of alternative credit and loan fast cash options. A number of products have been created just for people seeking loans without the need for a credit check. We’ve mentioned quick cash loans in the past. This personal loan product is in many ways ideal for those outside the traditional credit circle. You simply have to be 18 or 19 years old depending on your county, have a verifiable source of income and a checking account in good standing and live in a county where it is offered. There are no credit checks. The best thing is PQ can help consumers build credit. Second time borrowers who pay back their loans in full have access to greater lines of credit of up to £2,500 and lower interest rates. Even better, PQ will report your payment status to a major credit bureau to help you increase your credit score.

There are several other options that we’ve covered on our website for consumers in the land outside of traditional credit lines. These include payday loans, prepaid debit cards and car title loans. If you’ve dropped off the edge of traditional banking, take some time to look into these options. They could save you from plunging into a financial crisis.

Good to know, thanks!

It’s been hard to think about college while she’s struggling so hard to stay in high school, but we just found out she is definitely a junior (wasn’t clear for a while) and it’s looking more likely that she’ll graduate with her class, so it’s time to think about it more. I’ve got a 529 fund that, well, it would be enough in some states but won’t cover so much here.

BTW I think *exhaustion* is a big problem for single moms. I’m a single mom with a somewhat special-needs kid and a demanding full-time job and it’s a real struggle to get through everything I need to do (including studying to stay current in my career. If I had to add on top of that, the time it would take to class, plus spending enough time sitting someone else’s kids for *them* to get to class, well, I find it hard to imagine. And I have a hell of a lot of respect for the people who manage to do it.