Is It Bad to Not Have a Credit Card?

No, it’s not automatically bad to live without a credit card—you can absolutely manage your money with debit, prepaid, and cash.

But skipping credit cards completely can make it harder to build a credit history and sometimes more complicated to book things like hotels, rentals, or certain online services.

An Alternative Solution: KOHO Essential

If you don’t want a traditional credit card but still want modern banking and a way to build credit, KOHO Essential can fill a lot of that gap:

• 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).

Pros of Not Having a Credit Card

• No risk of running up a balance you can’t repay

• No purchase interest on everyday spending

• Simpler budgeting—if the money isn’t there, you don’t spend it

For people who are rebuilding or just starting out, this can be a lot less stressful.

Downsides of Skipping Credit Cards

• Building credit can be slower if you never use any credit products at all

• Some services (like certain hotels or car rentals) strongly prefer or require credit cards

• You might miss out on card based protections and rewards if you only ever use a debit card