Types of Spenders

What kind of spender are you?

Type 1: The disciplined spender - balance is always cleared each month.

If you are fortunate enough to be able to pay off all your repayments in full each month, then why not choose a card with no annual fee and treat yourself to one that offers rewards or cash back.

Type 2: The unreliable spender – balance is rarely or never cleared each month

If you are struggling to keep up with your repayments, then choosing a card with an introductory purchase rate or an ultra low standard rate is probably your best option. The low standard rate will help to save you money and also reduce the dependence on having to shop around when the introductory period expires. It’s definitely time to consider switching to a 0% card offering ‘double deals’ – a 0% introductory rate combined with a 0% balance transfer rate. It is recommended that you have 2 separate cards, one for your purchases and one for balance transfers.

Assess how long you think it will take & how disciplined you’ll be with your repayments because if you’re only just paying off the minimum requirement each month, your debt could potentially take years to shift. If you can pay off a substantial amount on a monthly basis, you can clear capital as well as interest, and ultimately your debt will be reduced far quicker.

Type 3: The struggling spender – poor credit history/difficult circumstances

If you have no previous credit history, have CCJs (County Court Judgements), arrears or defaults, or are self-employed, it can prove almost impossible to get a credit card. All is not completely lost as there are card issuers who can help in these particular circumstances. The bad news is that the rate on offer is likely to be based on an assessment of your circumstances and therefore different from the typical rate quoted. The good news is that this type of card, when used properly, can help rebuild your credit rating.