Profiling Credit Card Users
Credit Card Companies (CCC) have four types of customers:
1 – Deadbeats: These are users who pay in full. They are called deadbeats because CCCs earn no interest from them. The only money earned is from merchant fees when the card is used. And sometimes, they even cost the CCCs money from hustling rewards!
Think: Cliff and Claire Huxtable charging bills and groceries to earn reward points and frequent flyer miles, let their money sit in the bank until statement closes, when the bill comes, pay off the balance in full.
2 – Revolvers: These are users who charge up debt and let it revolve – meaning they don’t pay the balance in full but make timely payments. These are the CCCs BEST customers. They pay back the money as promised with a nice chunk of change called PROFIT. These users keep the CCC’s business thriving – LOVE ‘em!
Think: Ward and June Cleaver only using their cards for emergencies. The station wagon breaks down, they must get the hoopty back on the road. All household bills are paid but no efund in place. Wally must be picked up from school on time – charge it! The bill comes, pay more than the minimum and devise a plan to pay it off by XYZ date. Rinse and repeat.
3 – Profiteers: These are users who charge up debt but make slow – often on time but periodically late – payments. CCCs like them too but only if they don’t give up and continue to struggle paying. This makes the CCCs very happy because they get to collect interest AND fees. WOOO HOOO!
Think: Al and Pegg Bundy charging cigs and beer. Money is tight, rent is due, cravings are nagging at the frontal lobe. When the bill comes, sometimes they have it, sometimes they don’t. Gotta pay rent first and the kids need new shoes – charge it! And the cycle continues. On a good month, the minimum is all the CCC will get…for now. Next month is no different.
4 – DGFs: These are users who just Don’t Give a Fugg. They charge but don’t pay. After a while, their debt must be charged off and turned over to collections, which also costs the CCCs money. Why aren’t these people called deadbeats? Because the CCCs have actuaries who help them determine the statistical default rate, so they include these fugger uppers in their business plan. Since they expect a certain number of people to do this, they recoup costs through ridiculous fees and rates that affect #2 and #3 above.
Think: Pookie gettin’ new spinners for his Hyundai, charge ‘em on his Capital One CC with the $1,000 limit, put the remaining $500 on a payment plan cuz he’s now over the limit, pimp his ride and roll the fugg out. He never sees the bill cuz it’s sent to his baby mama’s house and he don’t even live there no mo’. LMAO!
Hmm…did I just cross the line of ra.ci.al pro.filing? Or was that class profiling? LOL *scratching my 4head*
Anyhoo, in this case, I don’t mind being a deadbeat. I pump ‘em and dump ‘em. LOL
Which one are you?
Peace & Blessings
~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!
~SM
This blog is all about Finance, Fitness, Fashion & Fun - the sum of my life. If you like what you've read, feel free to subscribe via (feed reader) or (email) to follow along.
In the past 26 years of having credit cards I have sadly been all four types. I’m happy to report that today I am a revolver but I will be a deadbeat before the end of spring.
I never thought being a DEADBEAT was actually a good thing…
*sigh* I’m a revolver, but working towards being a deadbeat.
This is the only time you’ll hear me admit that I’m a deadbeat!!! (with part-time revolver tendencies)
But umm..how you gonna put your cousin Pookie on blast like that?!?!?!
Since you’re my TWIN, that makes him your cousin too right? LOL
Or maybe we’re from the same womb but have different daddies? Ha!
~SM
Er’rum…I’ve BEEN all of these. Right now, I’m a revolver heading for the deadbeat zone. Beep beep! Ya’ll betta get out da way!
this was too funny, very creative and extremely informative!
and uuhhhhh….. i uuhhhh plead the fifth with regard to which one I belong to….
Proud deadbeat and always have been. I think maybe two Christmas’s I broke the bill into halves, half in January, the rest in February.
I use the LLBean credit card (popular up north here in the Artic circle) and at Christmas time, I go shopping with the points I’ve earned all year. Free shipping too!
Dang it… I’m a revolver… for now anyway! I’ll be a deadbeat in time.
Nice post! Never thought I’d like being a deadbeat.
This is probably the only situation in which I’ll say it proudly: I’m a deadbeat!
I’m like a 2 1/2 who is by the grace God turning into a #1!
Thanks,
Paula
Deadbeat fortunately.
LOL, I guess I do not fit into none of the categories.
But I have familiy members that are DGFs. ie. Pookies ~
LMAO
I switch between revolver and deadbeat throughout the year!
Never been a fugger – thank God!
I would classify as a deadbeat. My papa taught me well hehe.
Lesson my dad taught me about credit cards.
http://millionster.com/articles/debt/father-credit-card/
Much love. My mom was a single mom too.
Your friend in finance
http://millionster.com ’s 1mil (Juan)
Deadbeat checking in! Looks like I’m in good company! LOL!
ROTFLMAO.. ok now that I’m done laughing..
NONE I don’t OWN a credit card.. not even ONE..
After my bad college experience of owning 23 credit cards and racking up all that debt in 2 yrs LOL after I paid them off in 97 I never got another one!
None! Umm, why not?
~SM
And another proud deadbeat in the ranks. Hee.
I’m happy to say that I am a deadbeat!! Use to be a revolver, but now I’m just a deadbeat! HA!!
~leanne
Nice post. I would think that credit card companies know the number of deadbeats as well and raise the rates for #2 and #3 to compensate. It’s not just the DGFs.
It’s good to be deadbeat.
The fact you called the Cleaver’s station wagon a “hoopty” had me hunched over laughing. Really, water out the nose and everything.
I used to be a deadbeat before I got caught up in the power of purchasing on borrowed dimes…now I’m a revolver…trying to get back to deadbeat status.
Woohoo! I’m glad to be a deadbeat! (Although once upon a time I was a revolver…)
Now I know daggone well there are some DGFs reading my blog. Why y’all hiding? Man up and be proud! LOL
The first step to recovery is admitting your weaknesses. I won’t tell anybody. :-)
hmmm…you need to add #5 for me- Super deadbeat. I like to apply to a lot of cards especially the bonus money and 0% apr on bt and purchases. For bt, i take all the bt money, put in savings, and pay the minimum. For 0% purchases, i do my daily expenses on these cards. again, pay minimum, then pay it all off at the end of the promotional offer.
Definitely a deadbeat – but I was a DGF in college, LOL.