Profiles of Credit Card Holders

January 16, 2014

Portrait of mid adult women giving credit card to male cashier at cash counter

Having a credit card is a practical and basic tool for living if you know how to manage the responsibility that goes with it. Some people see the credit card as a license to spend and have no idea how to pay for their purchases and so end up being more in debt than when they started. However, credit cards are now more than just an extra line at credit. They offer many rewards and perks such that people can really choose the kind of credit card they feel suits their lifestyle and their spending. Here are the most common types of credit card holders based on their preference for their credit card.

  • The Beginner – is the type of credit card holder that has the privilege of owning a credit card for the first time. He may not have any financial sense at this point and may end up spending more than he has and as such, will be learning very quickly the ramifications of spending over the credit card limit. College students usually fall under the Beginner category and are usually given credit cards that have a low credit limit just to test the waters, so to speak. This is a valuable learning experience into the responsible handling of money and credit limits.
  • The Shopaholic – is more than a beginner credit card user. He (or she) has discovered the wonders of having extra money to spend on clothes, gadgets, food and whatever else you feel like buying. The shopaholic rarely has control over his spending and will most likely end up in debt because he tends to maximize his credit limit. It’s also possible that the Shopaholic doesn’t care about being able to pay his bills on time or paying attention to interest rates and such. His glory is being able to spend and spend. Ordinary credit cards should work for the Shopaholic but department store cards may give them more rewards and perks.
  • The seasoned Traveller – may be an individual whose personal hobby includes traveling the world or it may also be a seasoned businessman who’s work takes him to many different places on a regular basis. For these types of credit card users, they will benefit more from a Travel-oriented rewards program credit card, those that offer rewards for car rentals, hotel bookings, flights and frequent flyer miles. Business travelers may also prefer a business credit card that offers more rewards and perks and have low interest rates especially if the credit card is being offered to many employees.
  • The Regular Payer – is the type that can have any credit card he likes because he’s a responsible sort of credit card owner. He never fails to pay the full amount and on time. He will greatly benefit from credit cards that offer cashback rewards because he’s sure to receive them regularly. Because the Regular Payer is consistent with his payments, he will most likely receive offers for additional credit limit.
  • The Regular Debtor – is the complete opposite of the Regular Payer. The Regular Debtor may be a Shopaholic that becomes constantly in debt from his shopping expeditions. A regular debtor probably has a negative credit rating from all the bad debts that he has accumulated on credit cards. He will have no choice but to use secured credit cards or prepaid cards if he wants to improve his credit rating and get out of his debts at the soonest time. The Regular Debtor doesn’t seem to learn from his mistakes and becomes the bane of existence from credit card companies.