The credit card industry, infamous for making up their own rules, says that a credit card deadbeat is someone who pays their credit card balances in full and on time each month. Here's why you don't want to listen to what the credit card industry says.
Why the Credit Card Industry Uses "Deadbeat?"
Credit card companies make a large portion of their money from interest and fees paid by cardholders. You get charged interest when you let your balance revolve - that is, when you carry it from one month to the next, being assessed a
finance charge each time. Credit card companies love these kinds of cardholders because people who pay interest increase the credit card companies' profits.
When you pay your balance in full each month, the credit card company doesn't make as much money. If it weren't for merchant fees paid by the stores where you use your card, your credit card would be a waste of 16-digits. You're not a profitable cardholder, so, to credit card companies, you are a deadbeat.
Why You Want to Be a Deadbeat
The reason you want to be a credit card deadbeat is simple - because not being a deadbeat is costly.
