Deadbeats, Revolvers and Rate Surfers
I’ll bet you never thought being a “deadbeat” was a good thing. Well, it is for you, but not for the credit card companies. In the jargon of the credit card industry, deadbeats are people that pay their entire credit card balance in full each and every month. They rarely, if ever, carry balances, and because of that, don’t pay interest. They are also known as “convenience users” and “transactors”.
“Revolvers” are so named because they carry balances. It is a reference to credit card customers that are no longer covered by promotional or introductory offers of 0% APR and have to pay interest on their revolving credit. Banks and credit card issuers LOVE revolvers. Revolvers keep them in business. Boy, do they ever keep them in business… to the tune of billions of dollars every year.
People that regularly transfer balances from credit card to credit card seeking better rates, are known as “rate surfers”. Credit card industry insiders also use the less than flattering names of “rate tarts” and “gamers” to describe people that frequently transfer balances.
Be aware that while transferring balances can be an excellent financial strategy, doing it too often can raise red flags with the credit bureaus. Having too many credit cards can adversely affect your credit score. You will be seen as overextended and a heightened credit risk, even if you have never missed a payment.
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