What Type of Credit Card User Are You?

Like everything else in life, credit card users come in several varieties and so do credit cards. Finding the right type of credit card for you to use is as easy as knowing what you plan to do with the card. Once you make that decision, read the fine print that comes with all credit cards and make the best choice for your needs.

Consumer Who Likes to Pay the Entire Balance in Full

The first type of credit card user is the one who has a credit card or two for convenience. This type of consumer can easily acquire any type of credit card he wants and obviously has the most options to select from.

The interest rate matters little because he has no intentions of ever being charged any interest since his bill will always be paid in full and the balance on the card will always be zero. However, on the off chance that a payment is delayed, he might want to acquire a card with at least a decent interest rate- or one of the lower rates that are available.


Additionally, cards that do not charge annual fees are his best option since he obviously does not want to pay any money that he does not have to pay. In fact, he should also check into the clauses that are attached to the card and avoid any that have the universal default clause which allows the credit card company to bump up the interest rate should he make a late payment on any of his household bills.

Credit cards with rewards are excellent for this type of credit card user since he can amass the benefits without paying any penalties like interest charges or late fees. This type of credit card requires some checking into as well. Many of the reward cards have a sliding scale for their rewards, offering the best benefits to those who charge the most money. For example, a consumer might be able to earn a 2 % reward if they spend 'x' amount of dollars each month, but only 1% if they do not reach the limit.

Consumer Who Likes to Pay the Entire Balance in Full But Occasionally Has a Balance

Consumers who occasionally carry a balance on their credit card need to consider their options carefully. The interest charges on their balance can be minimal or they can be quite high depending on the level of debt that is going to remain on their card. Additionally, the length of time that they will carry the debt is another factor that will weigh into the amount of interest that they will end up paying over time. Therefore, acquiring a card with a low interest rate is probably in the best strategy for them.

Reward credit cards are also an acceptable option provided the attached interest rate is not exorbitant. Typically, the rewards that an individual can amass on credit cards are about 1 % of the total debt. This isn't a great deal in the grand scheme of things and it certainly isn't going to be very worthwhile if the individual winds up paying large interest charges. The two will actually counteract each other with the additional debt wiping out any benefit of the reward.

Consumer Who Always Has a Credit Card Balance No Matter What

Consumers who always carry a balance on their credit cards have additional concerns to worry about when selecting the type of credit card they will get. In addition to getting the card with the lowest interest rate, they need to look into the fees that are charged for going over the credit limit that is attached to the card.

Even if they have no intentions of going over their credit limit, this is bound to happen at some point. How could it not? Carrying a balance on credit cards is like playing roulette. You never know where the ball is going to drop. If you never pay attention to the balance since you have no intention of paying the debt in full when the bill comes around, you never really know what is on that card- until you get the bill.

Plus, it is essential to acquire a credit card with the lowest possible interest rate to minimize the monthly bills to the lowest possible amount. Interests charges add up quickly and can become financial burdens over time. Moreover, this type of consumer should also avoid credit cards that charge exorbitant late fees since this is also a possible expense.