Can You Live Without a Credit Card?

Yes, you can absolutely live without a credit card.

You can pay for most things using a debit card, prepaid card, e-Transfers, and cash, but you may run into a few situations where a credit card is helpful, like hotels, car rentals, and some online subscriptions.

A Simple Alternative: KOHO Essential

If you want a card for everyday spending without borrowing money, KOHO Essential is a solid option because it is a prepaid Mastercard®.

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.
• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.
• Grow your savings with a 2% interest savings rate on your entire balance.
• Earn 1% cash back on groceries, eating & drinking, and transportation.
• You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.
• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

What You Can Use Instead of a Credit Card

Most people can get by with:

• Debit card for daily purchases
• Prepaid card for online shopping and subscriptions
• Interac e-Transfer for rent and paying people back
• Cash for in-person spending

For many Canadians, this covers almost everything.

When Not Having a Credit Card Can Be Harder

These are the common pain points:

• Hotels: some require a credit card for the security deposit
• Car rentals: many prefer credit cards, or they may place a large hold on debit
• Online holds and deposits: some services do pre-authorizations that can tie up your money temporarily
• Building credit: if you never use any credit product, it can be harder to build a credit history