There are several sorts of credit card users, of which you are one. You might be someone who uses their credit regularly and makes the most out of the reward and offers provided by the bank or you might be a person who owns a premium credit card and uses credit cards rarely. The type of user can be defined based on your credit card habits.

In this article, we have defined various classes of people that carry a credit card in their pocket to help you know which type of credit card user you are.

Below are provided different types of credit card users in India:

1 The Responsible Users 

The responsible user is the cardholders that use their credit card sensibly. Now, credit card companies do tend to make much money out of such users as they always pay their outstanding dues in full and on time. These users always keep track of their Credit card statements. They always tend to pay their dues on time to avoid interest and late fee charges on their credit card account. They also make an effort to make use of all of the benefits and deals that come with their cards, whether it’s for dining, movies, or shopping. Banks benefit from responsible users since it allows them to give out more money. Consider this for a moment: if credit card users did not pay their bills on time, banks would have less access to funds.

2 The Revolvers

They believe in revolving credit, regardless of how large or small the outstanding balance is, thus earning their name. These users only pay the bare minimum or a little more, and they frequently defer payments for years. The banks love issuing credit cards to the customers belonging to this category. As these are the kind of customers who pay the interest and fees that help these banks earn their revenue. Users would carry their debt forward from month to month in the hopes of paying all dues in one day soon.

3 The Smart Users

These cardholders use their credit card optimally to derive the most rewards and benefits. These card users are always in search of a credit card that could get maximum reward points or cash back. They use their credit card to their maximum limit and transfer their balance to another credit card using the balance transfer facility. The new company to whom the transfer is made usually offers a cheaper interest rate or no interest for a set period. 

4 The Defaulters 

This category belongs to the users that do not intend to pay their credit card dues. Any bank would prefer not to have these types of consumers. When you don’t pay your credit card bills, it not only hurts your chances of acquiring more credit, such as a car or a home loan. The issuer may potentially take legal action against you. If you believe that you won’t be able to repay the dues on time then you can choose the best no annual fee credit cards as it will cut down some charges. 

5 The Non-Users

These are the customers who opted to stop using credit cards owing to their bad experiences. These are the customers. These users have a history of credit card debt and have determined that the best way to remain out of debt is to cease using their credit cards. You can bypass or simply ignore people who brag about having a credit card but are hesitant to use it when the time comes.

Bottom Line:

Credit cards are always a blessing as long as you are a responsible user and these can be your worst enemy if you are among non-payers or revolvers. The benefits you get from a credit card depend upon your financial behavior and if you are feeling that you are stuck in a debt trap, it is also because of your wrong & irresponsible credit card usage. You must try to be among max payers, responsible users, and smartest users, instead of being a revolver or a non-payer. And if you are a person who is looking for a credit card. You can apply for a credit card online by visiting the bank’s website. Various banks have different eligibility requirements based on the type of credit card. Make sure to check the eligibility and documentation required before applying for a credit card.