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CoffeeMug32

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Getting to a thin file
Back in September 2016 I payed off my entire student debt that went into collections. I do not use credit cards nor will I apply for one. I only pay with cash or my debit card. How long will it take to go from about a 569 score to having no score at all? I'm aware that the collections part will stay on file for about 7 years. I do not want to use credit to get what I want/need if I have the cash for it.

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The truth about credit

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is that if you don't use it then you don't have it.  if you were to maintain a credit free life, your score would drop to 500 and stay there... forever. 

if you continuely use cash only, then you have no need for a credit score. 

the difficulty is that when you have need of credit, i.e. a mortgage. then you will have no credit history thus no mortgage for you!.  You would need to save the full amount of a mortgage before you could buy.  The other thing that most people don't think of when they think about a credit free life, is where it affects the other parts of your financial life.  With a 500 score you will pay the highest premiums for auto, life and home owners/renters insurance. They consider those with out good credit,  high risk. You may not be able to get your kids into a private school. You could be denied a job, specially management positions,  because a low score is considered someone that doesn't handle responsebility well.  

So my suggestion if you want to live a cash only life. get 1 credit card. even if its just a gas card. use it all month. Pay the balance every time you get the bill and Viola, you have a good credit rating. IT wouldn't be a full credit report like most people have, But it will give you a credit history. 

Even if you only have 1 card and pay it off every month, over a period of 7 years you can have a rating in the high 700's. 

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I used to think that a cash only basis was the best way to live until after I read the articles here and now u=nderstand how credit works.  I now have several credit cards that are paid in full every month and recently purchased a new car at a low interest rate, which is impossible unless someone has a good credit history. Please take the time to learn about credit. which nis the reason for Credit Karma.    

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