November 13, 2007

That’ll do nicely

With hundreds of credit cards around it is easy to get put into a category, there are so many with different logos, images and designs on, unlike in the early days of credit cards when there were only a few which all had their own sort of status attached to them. But today is so different there are not just credit cards around, but store cards, petrol cards and even loyalty cards, so what does your card say about you?

Basically there are two types of card user, the Transactor and the Revolver:

The Transactor is the one who pays off the entire bill at the end of the month or whenever the bill comes in, they do not worry about how high the interest rates are because they do not use them in a way that this would be an issue. What is a concern to them are the rewards, there are many cards that offer cash back and other rewards, this is the weakness of the Transactor.

The Revolver on the other hand is the one who has a large balance on their card and are very used to moving it from one to another, this is a way of getting the best type of interest rate that they can. But they are not interested in rewards as they are not loyal to one single card; they miss out on the rewards in order to shop around for the best deals in interest rate.

So who are you, I suspect that we are all a bit both?

Source [Savings Friend]