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5 Types of Credit Card Users

Credit card is something that not every individual is fond of. Some people consider it as a pain to keep paying the bills and some of them consider it an easy source to purchase without having to pay there and then. Credit card elicits varied responses from individuals based on their personal experiences with them.

Like them or not, credit cards are a part of mainstream society and they are here to stay.

Only thing that matters is how you use and treat a credit card.

If you own one, you, definitely fall under one category of credit card users mentioned below.

Got no chill and pay on time

If you fall under this category then you’re the most responsible individual who pay in full and on time that too every time. The max payers of credit card bills are intuitive ones who have an idea of what the statement would be in advance and prepare for the expense.

If you can think about how much your credit card bill would be at the end of every month, you are an exceptionally smart individual who also keeps an eye on offers that come along with the card and make the best use of them. You’re perhaps the one never missing out on movie tickets or brunches that come associated with the card.

No worries and carrying debt along

This is the revolvers club where the individuals always carry their dues and do not believe in paying full payment. They are easy-going with the debt being carried on and they just pay the minimum amount due and go about making purchases on their cards as usual.

Interest rate being increased? Oh! This hardly bothers them and yes, no matter how big or small the outstanding amount is, they keep on revolving their credit. Even though they have to high interest rates for carrying their debt forward, they never get burdened and keep on adding to the credit card charges.

Carefree without any intention to pay

These are deadbeats who never nor they are willing to pay their credit card bills. People wonder why the interest rates on credit cards increase. This is because they’re the ones who keep interest rates and fees high for everyone else. Some of these cards are obtained fraudulently, or by people who make a game out of signing up for every card they can so they can get a free t-shirt, store discount, or other small reward.

If card dues are not paid, it affects your chances of getting any sort of further credit like a car or a home loan. It builds a bad rapport with the bank and would further hamper your chances of getting credit card benefits.

Smartest of all and playing around the balance transfers

These are traders or arbitragers who are considered to be the smartest credit card users.

They are always looking high and low for cards with maximum rewards, cashbacks, longest payback tenure etc. After using the maximum amount on the credit card and cashing in the reward points, they’re on the pry for cards that offer transfer of balance without any fee or have least rate of interest.

Being very clever, they don’t transfer the entire balance. A small sum remains in the old card so that the reward points earned in that doesn’t get wiped out. While they go for other credit cards, they also get the benefit of being a new customer and get a lower rate of interest for a limited number of months.

This is like making the most of both the cards and enjoying the perks of two worlds.

But this is not an easy way to get benefits of multiple cards because a small lapse could make your house of cards tumble.

Simplest of all is to be a non-user

Being a non-user or the reformed credit card user is like staying away from the bills and keeping your life easy. These are former credit card users who for some reason decide to completely stop using it even in case of emergencies. Also, it includes the ones who’ve never opted for a credit card and are leading their lives with other payment sources.

The reformed users just avoid using them because perhaps, they’ve gotten into trouble for using their card wrongly or those who like to be extra cautious with their expenditure.

Revolving their credit could burn a hole in their pocket and to avoid that they turn into non-users.

So, which category do you belong to? I believe the best one is to be a max-payer and make all your payments on time to continue enjoying the credit card benefits and good relationship with the bank.


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