Here are another three types of financial personalities, in one of which you might recognize yourself.
Financial Personality #4: The Experienced
Your Traits: You manage your credit cards in that responsible, confident way that is characteristic of people with sober mind, organized and business-like. You have your budget planned out, and keep your finances under control. You make your credit card payments on time and you have good or excellent credit.
What Credit Cards to Look for:You should get reward credit cards with some special rewards programs. Rewards that you can really enjoy. It can be an airmiles rewards card that gives you a chance to redeem your miles for an exotic vacation trip, or a card that will grant you a gift certificate to visit your favorite restaurant, or a deal that will enable you to contribute money to your favorite charity fund.
Beware of: With your stainless credit report and your talent to manage your credit cards flawlessly you can choose any credit card offers you like. You can make reasonable profit of any card deal. Until you are guided by common sense, you will avoid even the most intricate hidden pitfalls.
Financial Personality #5: The Avoider
Your Traits: Finances is not your strong point. You do not really like to discuss economic situation in the world, and you get panic-stricken when it comes to opening your credit card bills and analyzing your personal finances. You might be an artist, a creative person that does not really care for material values.
What Credit Cards to Look for: If you get suddenly concerned with your money matters and decide to choose a credit card to get finances together, you are going to need a plastic that will claim your attention to your finances. Find a card that will encourage and stimulate you to open, first, and then pay your bills on time. There are credit cards that reward you for making several monthly payments on time in a row. You can also go with an issuer that will not penalize you for late payment and will not report it to credit bureaus, so your credit score will not get hurt. In general look for low interest credit cards, no annual fee offers, cash back credit cards.
Beware of: Credit cards with high credit limit. You need strict limits on the amount of money you can spend, otherwise, you can find yourself in a debtor’s prison with a destroyed credit score. Point rewards credit cards are no option for you as well. You risk forgetting to redeem your points, or the date they expire, or something else.
Financial Personality #6: The Better Person
Your Traits: Maybe you are not as perfect as Mr. Experienced and you make financial missteps once in a while. Or maybe you had some credit problems in the past when you were young, or after you lost your job, or fell seriously ill. But you learn quickly. You still carry a pretty large balance, but you are working hard to regain your financial freedom. You are writing a new page of your financial life.
What Credit Cards to Look for: The solution is right on the surface. You should get a balance transfer card with 0% intro APR. Find a deal that offers you the longest interest-free period possible. Do not let the balance transfer fees slip your attention. You can transfer your total credit card debt and start paying it down at 0 interest. But if you feel that you will not handle eliminating debt within the promotional period, you can transfer a part of your debt you are sure to pay off.
Beware of: Do not give in to the temptation of spending much money. Rewards credit cards and high limits are contraindicated to you. Every time you take out your plastic you should be focused on the fact that you are trying to eliminate your debt. And I guess, a new waffle iron or a gift card for the extra $100 spent will not make you closer to your goal.
So, these are the basic types of credit personalities. Even if you have not recognized yourself in any of them, you may have found some similar traits.
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May 23rd, 2008 at 2:52 am
I guess I am #5. I read a lot about credit cards but I have just one plastic.
June 11th, 2008 at 1:10 am
I think I am The Better Person. Not a bad type