What kind of credit card user are you?

"Credit card interest payments are the dumbest money of all", as once spoken by Hill Harper, a famous American actor, and author which might relate to most of the intelligent Americans who know that a good debt is a person’s liability towards someone’s asset. The recent years have seen a huge increment in the use of credit cards where users are struggling to pay off their debts within the allotted time and remain coerced into the banks.

On an average 33% of the entire population in the US uses more than two credit cards and are still liable to pay huge interest to their respective banks. This increasing concern can be settled only by the free intro period balance transfer card, which allows the holder to transfer the withstanding balance from one credit card to another, of a different provider with 0% Introductory rate (or intro APR).

No, that’s not where it stops. The fact might astonish you that according to Experian’s recent investigation, an average American holds a balance of $6,375 in his credit card, which is nearly 3% hike from the previous year. According to the Federal Reserve’s latest calculations, an average American household bears $137,063 as his credit card debt.

Types of credit cards

• Rewards Credit Cards: As the name suggests, this type of card earns you credit points on every purchase you make. While some credit cards will pay you up to 2% of rewards, other will earn you extra points.
• Low-Interest Credit Card: Ever tried to realize what can help you sort your carry forwarded credit balance every month? If you did, the only reliable answer is to use low-interest credit cards that will charge lesser interest rates on your purchase.
• Balance transfer Credits Cards: This lucrative class of credit card will equip the holder with the ability to transfer his credit balance from one card to another card of different banks that might have lower or attractive terms.
• Secured Credit Card: These types of cards are meant for those who have a bad credit score and are unable to pay their debt for a longer period of time. This card requires the account holder to provide post collateral to the credit provider.

Balance transfer cards with 0% introductory rate

Out of the four general types of credit cards available in the market, balance transfer cards are the best possible option that can help you cut down your interest rates. It also provides the benefit of switching your balance into another credit card the serves with you better terms. Generally, banks charges you with introductory Annual Percentage Rate on a term of minimum 6 months up to 21 months as set by the federal government, which is charged on the amount of balance, transferred.

But, relax! Because of the heavy competition of the global market and the debt amount banks are now trying to lure or rather attract customer by giving away free introductory rates or 0% interest rates on their balance transfer card. Different balance transfer card offers you with appealing offers and tenures of about 12 to 18 months to make you easily pay off your debts.

However, you must check into the terms and condition of each balance transfer cards that are available to scrutinize for any additional interest rates that might be applicable for any other unlikely reasons. Know more about the free intro period balance transfer card.

Types of credit card holders

I bet you cannot imagine a better way to buy, shop, travel or do business without a credit card. Americans have it in style to show off their platinum credit card wherever they have a chance to invest their money. But let me remind you of the different types of credit card holders among which you be the one. Just go through the class of people carrying a credit card in their wallet and let me know which one suits you the most.

• Max payers

The most reliable credit card users who hold the reputation of paying their debts in due terms and also remain prepared for further investment fall into this category. They have this sheer determination to not pay any dollar as interest or lower their credit scores thereby allowing the credit card provider to keep the money in circulation.

• Revolvers:

No, don’t think of colt revolvers here. There are cardholders who don’t believe in the concept of paying their credit balance in due time. They would carry their balance forward to the next month and then to the next in the hope to pay all dues in a day in the near future. But don’t judge the fact as a drawback for the banks. These kinds of people are the sweetheart for the card issuer as the company earns profit from the interest they charge from these cardholders.

• Non-Payer:

Don’t just try to involve yourself into such categories of people who think they can purchase anything and fool the credit card company by not just paying the withstanding balance on the card or simply throwing it away. The huge interest that keeps on compounding every month will only add up to your discomfort.

• Traders:

These are the cleverest of the lot, who prefer to access the best credit cards that will earn him most reward points, longest payback tenures and additional cash back offers. After they reach the maximum credit limit of the card, they transfer the balance to low introductory interest rate balance transfer cards, which allow them to pay off their debt with the lowest possible monthly installments.

• Non-users:

You can skip or simply overlook this kind of users who normally boast about holding a credit card but back off at times of using it.

It’s all towards its end that you need to decide to come out of your labyrinth situation of recurring credit card bills and allow yourself to stay relaxed from getting chased by the card issuer. It might not always be possible to maintain a good look out over paying bills but only if you don’t get carried away on unnecessary spending you can easily come out of your maze.