How Much Can You Save With DebtQuest USA?
Talk To A Representative Now: 800-736-0660
DebtQuest
Talk To A Representative Now: 800-736-0660
Is It Good to Be a Credit Card Deadbeat?
January 12, 2020

Is It Good to Be a Credit Card Deadbeat?

Are you aware of how you handle your credit cards and how they differ from other users? Most likely, you have never given it much thought. The majority of us use our credit, check statements, and pay the balances – nothing more.

But credit card companies have another way of looking at it. It turns out they distinguish between revolver debt, credit card deadbeat, and “card-hacker” users. Let’s see what makes these users different and which one you should strive to become.

Types of Credit Card Users

From a consumer’s perspective, we don’t have a distinct separation between credit card users. The reason is that we derive no benefit from having this kind of information. Credit card companies, on the other hand, are keen to learn and understand users’ habits. Here are the categories they came up with.

The Revolver

What is a revolver in finance? These customers do not pay off their balances in full at the end of each month. As a result, they receive more interest on their unpaid balances. As time goes by, the total amount increases even more, since new balances are added to the existing ones.

The customers bring the highest profit to companies because unless they pay on time, they end up spending more money. As you might have guessed, credit card companies prefer to have as many revolver credit card users as possible. It doesn’t mean that being a revolver is awful, but it does mean that you pour more money into creditors than you need to.

Get Help With Your DEBT

get help now

The Card Hacker

This type of user finds ways to outsmart companies by leveraging different offers to their advantage. For example, they might open a credit card to receive incredible bonuses that have a high annual percentage rate. They might also make big purchases and receive rewards.

At the same time, they could open another credit card; only this one has 0% interest. Users can transfer the charges from an expensive purchase over the second card at 0% interest. It buys them more time to pay it off the debt with no interest.

While it sounds enticing, these actions are not flawless. For instance, cards offering balance transfers often require fees for signing up. If the rewards’ are worth is less than the fees, you end up losing money.

The Deadbeat

A deadbeat credit card user is one who pays their credit card bills in full every month. Despite the unflattering name, deadbeats practice responsible behavior and have a lot of positive financial acumen. They realize the benefits of consistently making and carrying out this strategy from month to month.

They are also hard to persuade when it comes to bargains, sales, and special promotions. They often see past the promotional tactics and realize there is no real benefit. As far as they can help it, deadbeat users do not have to pay interest. The reason you want to be a credit card deadbeat is simple – it is very expensive not to be one. By staying on top of your finances, you escape potentially costly finance charges on your credit card balance.

Who Do Credit Card Companies Benefit From?

As has been said, credit card companies can stay in business mostly due to the bank accounts of revolver users. They profit from collections in the form of interest, fees, and other charges. When you fail to pay your full balance in full or revolve it, you will have interest and finance charges for that amount. Companies love these transactions since they yield them pure profit.

In comparison to revolver credit card users, settling your balance in full each month saves you a lot of money. By extension, it means companies can’t collect interest on these users, hence the term “deadbeat”. While these users still pay specific fees, it is less significant.

For example, you have a credit card balance of $5,000, with an interest rate of 15%. Instead of paying the balance in full each month, you send $200 to the creditor each month. If you don’t add any more to the balance, it will take you two and a half years to pay it off. Over time, you will have paid $1,033 in interest alone. If you only contribute minimum payments, it will be even higher – more than $2,000.

By this logic, you should strive to be a deadbeat user. Even though it may be slightly more challenging to execute, the long-term benefit is evident. There are additional perks as well, such as a gradual improvement in your credit score.

Is It Good to Be a Credit Card Deadbeat?

You're Only a Click Away from Debt Relief

GET STARTED

How to Become a Credit Card Deadbeat

We recommend sticking to the following rules to become a deadbeat user and enjoy the benefits of this position. Remember that changes in your financial behaviors do not come overnight. Decide which one you can stick to long term.

Don’t Carry a Balance

What does it mean to carry a balance on a credit card? As you might have gathered, it means only paying the minimum and always owing money to your credit card company. So, to avoid this situation, try paying your balance (or a portion of it) every time you get paid at work.

Contribute to Your Savings

If you have enough money to cover emergency incidents, you will not fall behind on your credit card payments. Whether you deal with car repairs, sudden medical expenses, or something else, it will not affect your credit.

Budget Smartly

Leave some disposable income for entertainment or spontaneous purchases. If you are too strict on yourself, you will eventually either feel very constrained or fail to stick to your budget. Also, pamper yourself, and your loved ones are great for your mental health.

Improve Your Credit History

It is common knowledge that having a great credit history generates many perks, such as low-interest rates on credit cards and car insurance rates, better chances for higher limits, etc. These benefits help you remain a responsible credit card user.

Don’t Have Too Many Cards

Having a couple of credit cards is helpful. For example, you can find a combination of cards where rewards outpace the fees. However, if you open too many, you will become overwhelmed with tracking and managing all of them. You may even forget to pay the balances on some of them.

Learn the Terms and Conditions

Do you know when the company can charge fees? Is there interest on cash advances? Are there any hidden rules? Even if you want to believe the company has your best interest in mind, they are always seeking better profits. The more informed you are, the less likely it is that you will be taken advantage of.

See If Our Program Is Right For You

GET FREE QUOTE

Main Takeaway

If you are already a deadbeat, congratulations! It means you have mastered the skill of being a responsible credit card user. You can go even further and ask your credit card company to increase your credit limit. If you don’t change anything else and continue to pay your balances in full, you will noticeably improve your score.

If you are considered a revolver in finance, you may want to make some adjustments. It doesn’t necessarily mean you are doing something wrong. But you can make some changes with the help of DebtQuest USA and save any extra money each month. See what kind of strategy will allow you to pay your balances in full and start taking the necessary steps to financial freedom.

Debt Settlement Is Your Start To A Debt Free Future
Contact US
Related articles
16 September 2020
Debt Help for Single Parents
Raising a child is already a daunting quest in and of itself. But it is all the ... Read More
12 September 2020
Stop Collection Calls
While stopping collection calls can be a difficult process, requiring a keen ... Read More
8 September 2020
The Best Ways to Sell Online in 2020
A recent change in our international culture as a species has floored investors ... Read More

How Much Can You Save?

How much debt do you owe?

$1

$100k+

What is your desired
monthly program deposit?

$1

$5000

Debt Quest Debt Settlement

$500

Your monthly
program deposit

$5,750 Savings

Your Savings

39 months to pay off your
current debt listed above.

Your monthly program deposit:
$500

Your Savings:
$5,750 Savings

39 months to pay off your
current debt listed above.


Debt Consolidation or Credit Counseling

$500

Your monthly
payment

You pay $14,478 more

No Savings

79 months* to pay off your
current debt listed above.

*Assumed average interest of 15%

Your monthly Payment:
$955

No Savings:
You pay $14,478 more .

36 months to pay off your
current debt listed above.

*Assumed average interest of 15%


Paying Minimum Monthly Payments

$500

Your monthly
payment

You'll Pay $29,199 More than you owe currently

No Savings

9 years* to pay off your current debt listed above.

*Assumed average interest of 20%

Your monthly Payment:
$500

No Savings:
You'll Pay $29,199 More than you owe currently.

32 years* to pay off your current debt listed above.

*Assumed average interest of 20%

We know what we are doing
Check our licenses
DebtQuest USA, LLC BBB Business Review
Get started!
Get Your FREE Consultation and Debt Quote.

By submitting your information above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy. That you are providing express “written” consent for Debt Quest to call you (autodialing, text and pre-recorded messaging for convenience) via telephone, mobile device (including SMS and MMS – charges may apply depending on your carrier, not by us), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. We take your privacy seriously and you may receive electronic communications, including periodic emails with important news, financial tips, tools and more. You can always unsubscribe at any time. Consent is not required as a condition to utilize DebtQuestUSA services and you are under no obligation to purchase anything. ( Debt Quest USA )

Lear More