Are you a credit user or a convenience user?
Contributed by Clean Credit Queen, Linda Adams http://www.cleancreditqueen.com/ From: Sound Money Tips (11/07 article)
Are you a credit user or a convenience user?
Take the following quiz from Sound Money Tips and find out before you get your next credit card offer in the mail. (If you are like me, that means you better do this before you check your mail today!)
Credit User Quiz: Answer Yes or No to each question.
Do you carry a balance (borrow money) on any of your credit cards from month to month?
Has the combined balance on your cards stayed the same or increased?
When you receive your credit card bill are you unpleasantly surprised at the total?
Do you find that you make regular impulse purchases (non budgeted items) using your credit card or cards?
Do you spend more than you budget because you charge unnecessary luxuries to your credit card or cards? (Did you really need that daily Starbucks, or more than one Blockbuster Movie per night on the weekends?)
If you answered Yes to more than one of the questions above, you are most likely a Credit User.
Credit users should choose a card with the lowest interest rate they can find. If you are a credit user the annual fee is not as important as the interest rate since you will likely benefit more from a lower rate than a cheap fee.
If you answered No to both questions 1 and 2 then you are most likely a convenience user.
Convenience users should look for cards with low or no annual fees since they pay off their balances every month. One thing to look for is a long grace period…just in case you want to pay the balance off closer to the due date.