Hair colour is now readily available at every department store and experimenting with it is becoming a norm. There are those who only hide their greys, get streaks in funky colours, bleach strands of their hair so that they can use cheap colours over and over or colour all their hair. Of course, there are those who against it entirely.
Similarly, depending on how you treat your credit card, you could fall under five different categories of credit card users.
1. Max Payers or Full Payers:
These are the most responsible kind of people. They have an idea of what the statement would be in advance and also prepare for the expense. They pay their outstanding credit completely and never pay a single paisa as interest. They are not the kind of payers that a credit card company makes money from. However, they pay back, thereby allowing the credit card issuer to keep the money in circulation.
Max payers also keep an eye on offers that come along with the card and make the best use of them. They never miss out on movie tickets or brunches that come associated with a card.
We aren’t talking about Colt revolvers. They are a different type of credit card holders who do not believe in paying their dues to the full. They pay only the minimum amount due, or little more than that, and go about making purchases on their cards as usual. High interest rates do not bother them. No matter how big or small the outstanding amount, they believe in revolving their credit, hence earning their name. They are the darlings of the credit card companies, for the companies make money at their expense. Revolvers, be prepared to see your credit scores make a downside dash.
Contrary to the first two categories, non-payers manage to obtain all the credit cards offered to them, use them all up to the maximum available credit and then not pay up at all. These are the type of customers that any credit card company would not like to have. When card dues are not paid, it not only affects your chance of getting any sort of further credit; like a car or a home loan. You can also be subject to legal action by the issuer.
Many of the people that fall into this type have often obtained their cards fraudulently. There is nothing good about being a non-payer.
Traders are the smartest credit card users. They are always on the lookout for cards with maximum rewards, cash back, longest payback tenure etc. After using the maximum amount on a card and cashing in the reward points, they are on the pry for cards that offer transfer of balance without any fee or have least rate of interest. Being very clever, they do not transfer the entire balance. A small sum is left in the old card so that the reward points are not wiped out. The new company, to which the transfer is made, generally offers a lower rate of interest or no interest for a limited number of months. Traders end up making the best of both the worlds. This is no easy game and you have to be very cautious and well informed to be a trader. A small lapse could make your house of cards tumble.
5. Non users:
We have a number of people who boast about owning all sorts of cards; gold, platinum, coral and more. But when it comes to using them, they just don’t. Non-users are typically those people who have previously gotten into trouble for using their card wrongly or those who like to be extra cautious with their expenditure. Frequent cycles of revolving credit burns a hole in their pocket and revolvers then reform themselves and turn into non-users. As they were once the darlings of credit card issuers, they are often enticed into using their cards again.
Non -users being true to their name, refrain entirely.
Streaks or no streaks? Full payer or Non-Payer? Which category do you relate to?