Is Having A Poor Credit Rating A Good Thing?

Having a poor credit rating is never really a good thing, but there are times when you would rather not be your credit card companies favourite customer. Credit card companies are in the business of making money and when they do not make money from a customer they do not appreciate it. The credit card companies tend to refer to these kinds of customers as deadbeats. Although that sounds like a bad thing, most of us should aim to be a deadbeat credit card customer.

The deadbeat credit card customer does not necessarily have a poor credit card rating. In fact, they could have a very good credit rating because they do not carry debt over from month to month. Deadbeat card customers pay their bill in full each month so that they card company never makes a profit from them. That is why the card companies consider these people to be deadbeats, but in this case a deadbeat is a good thing.

You should worry only about your finances and avoiding a poor credit rating and not the profits of your card issuer. If you can manage to get a credit card that has no annual fees then you can potentially save loads of money and still have the convenience of using a credit card for your transactions. In effect, you will be able to get short term finances at absolutely no charge. there are times when this might not be the best choice. For instance, if you are using your credit card to finance a big purchase that you cannot pay off in one month. Since interest rates on no annual fee cards are usually higher then those on cards that charge an annual fee. So, if you are actually using your card to finance a big purchase then you might get one specifically for it. You can continue to use your other card for your regular transactions, free of charge of course.

While having a poor credit rating is not a good thing, being considered a deadbeat by your credit card company certainly is. If you manage to only spend what you can afford to repay each month you will be one of an elite few who use credit cards to their advantage and for free. The card company will not like that they do not make a profit from you but you will surely enjoy using all of their services.