Credit Card Guide
What is a Deadbeat?
You hear the word "deadbeat" and immediately there are connotations of, more often than not, a dad that doesn't pay child support for his kids. Who wants to be a deadbeat? In the case of credit card holders everyone should want to be a deadbeat!
What exactly is a deadbeat when it comes to credit cards and why do you want to be one? Are there benefits as well as pitfalls to being a deadbeat when it comes to being a credit card holder? What can you do when you have a credit card and are a deadbeat to help protect yourself from the credit card companies' backlash against deadbeats? All of these questions are important to ask yourself before you decide to apply for a credit card of any kind.
Why Be a Deadbeat?
A deadbeat, in this case, refers to someone who pays their credit card debt in full and on time each month. Deadbeats do not just pay the minimum payment as they don't want to be saddled with the interest that comes with carrying a balance on a card that more than likely has an exorbitant interest rate. With each new bill that comes in they make the conscience decision to pay off the balance in full and don't worry over having excessive interest building on their card nor do they have to concern themselves with late fee charges. These are just a couple of the reasons why one should want to be a deadbeat.
Are there Deadbeat Benefits and Pitfalls?
The key benefit to being a deadbeat credit card user is that when you pay your balance off in its entirety each month you don't have to worry that you will be accumulating a huge amount of interest on any balance you have on the card. Keeping your credit card use and balance in check helps the holder to maintain a better credit score as well. We all know how important the number that shows up on our credit report is when we go to do next to anything anymore. Whether it is to get an additional credit card, a car loan, or even a loan for a home, the number that shows up is vital.
The credit card companies do not like people that carry a zero balance on their cards because then they cannot make any money off of them. As a result, they have taken to finding means to cancel credit cards on people. One common way the credit card companies do this is when no balance is carried and there is a period of inactivity, they will use that period of inactivity to permanently close your account.
Can You Protect Yourself Against Deadbeat Backlash?
You pay your balance off in full and your credit card company doesn't like it -- What can you do to protect your credit while keeping the company happy as well? One of the simplest ways to stay "in good standing" is to carry some sort of balance but for a true deadbeat that won't work. One of the simplest suggestions is each month charge a small amount on your card and pay it off in full to prevent cancellations due to "inactivity."
Now that you are armed with the knowledge that being a deadbeat is a beneficial thing for any credit card holder to be, are you going to strive to be one? Pay those balances off in full each month! Be aware that inactivity can cause credit card company backlash. Protect yourself and your credit score by taking steps such as limiting card inactivity and you can keep not only yourself happy by paying off your debts in full but also keeping the credit card companies happy with constant use.
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