Even though it may seem odd at first glance, your credit card speaks a lot about your personality. How is this possible? By looking at your credit card history and the features you choose, you can determine plenty of interesting aspects regarding your money habits, lifestyle, and more importantly, about your susceptibility to bad credit.
In Australia, almost every adult has a credit card. In fact, only 10% of people who have the legal age to own one are not in the possession of a credit card. But what type of card swipers are you and how can you improve your financial stability and money habits?
Types of Card Swipers
The Points Collector
If you are that kind of person who can’t wait to pay for the goods because you are interested in how many points you have gained this time, you are definitely the points collector. However, you should know that rewards programs are rarely built for your own benefit. This way, the temptation of buying more and frequently is higher, so the companies take advantage of these types of card swipers. So think twice before purchasing something only for the sake of gaining more points.
If you have plenty of debts, and you are used to switching between a few credit cards daily, you are the juggler. The probability to sink into debt is dangerously high for you, so our piece of advice is to pay off one of your cards first. Then, try to get rid of more credit cards, and take into consideration the option of a consolidation loan with a low-interest rate.
When it comes to card swipers, an important type is a switcher. If you are attracted by every zero-interest balance transfer card and move your debt to a new card right after you took advantage of the interest-free months of the current one, you are in this category, too. The problem is that your credit score lowers significantly when you do this, which may affect your future loans.
It is perfectly reasonable to spend money regularly, but some of the Australians pay more than $5000 a month! This type of card swiper is called the spender, and you can tell by yourself whether you are one or not. If you are, then you can take advantage of rewarding programs, so make sure you choose a credit card with this feature. But pay attention to the card’s fees, too.
The trendsetter is that kind of card swiper that has a tendency for buying anything that is new or in trend. However, your financial stability may suffer because of your spending habits, and you should pay particular attention to your credit cards’ benefits and fees before choosing one.