Photo: szlea
You may think that your vanity credit card with pictures of puppies or your alma mater’s mascot is what helps the cashier at the grocery store peg your personality, but in reality, the features and terms of your credit card are far more telling. Of course, no one but you and your issuer know whether you have a low interest rate, cash back rewards or monthly reporting to credit reporting agencies. So, consider this rundown of credit card personality types as an exercise in self reflection. You may learn something about yourself.
The Low Interest Rate Card
You, oh low interest rate seeker, are one who lives in the moment. A true American, you buy now and pay later. You carry a balance today so you can enjoy living beyond your means. To you, that finance charge is well worth having all the things you want, when you want them. You are first in line at Best Buy every Tuesday – ready to be the first to get that newly released DVD, the first to hear the new album from everyone’s favorite band. Sure, you’ll pay more for it in the long run. But you’d rather have something tangible in your hands now than waiting to save up the cash. Of course, you’ll need to be careful: if you charge too many things today, you may not be able to afford the next impulse buy down the road.
Shopaholics who live in the now may enjoy the Capital One No Hassle Miles Rewards or Capital One Platinum Prestige. You’ll pay 0% APR on purchases until May 2010 – but you’ll need excellent credit to qualify.
The Rewards Card
You, my friend, are a bargain seeker. For you, the pride of ownership isn’t satisfying enough. You need something a little extra to make purchases worth your while. But to you, it’s worth it to know that your spending is accruing you extra perks down the road. You’re a modern day coupon clipper – always getting a deal. That’s why you research each of our purchases carefully, diligently ascertaining:
- Where am I going to get the best deal?
- How can I get a discount?
- Who should I buy from to get the most rewards?
With today’s tightening credit card terms, getting the most rewards for your spending habits isn’t always as easy as picking three top categories. Now, you have to shop online through your card issuers partners and keep track of “rotating categories” and “platforms.” It’s a lot of legwork, but that free vacation, free upgrade to first class, $250 cash back or $50 gift card to your favorite retailer is well worth it. You may even opt to pay an annual fee at the chance to earn rewards, because you’ve done your homework and know that it’ll pay for itself in the end.
Looking for free stuff down the road? Get $50 cash back right off the bat with the Chase Freedom Mastercard. Or why not spend towards a nice tropical vacation with your Sandals Resort Platinum Plus Visa Credit Card.
Read the rest of this post at FinancialMethods.org.
