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Revolvers vs deadbeats?

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Anonymous
Not applicable

Re: Revolvers vs deadbeats?


@Aim_High wrote:

@Anonymous wrote:

Curious how different the card issuers have treated you when comparing carrying a balance and paying interest, versus paying in full each month? 

 

Do those lower risk that pay in full get credit decreases, account closures etc similar to the higher risky revolvers? ...  Everything I've seen is carrying a balance for a while and the balance chasing often begins once you start to pay it down.   Curious if that pay in full most of the time and aren't charging huge amounts, are you getting credit line decreases etc? 

 

My boss that makes way more than me charges on average 10k a month on his chase sapphire and chase seems to love him and treats him well. His swipe and % fees add up I'm sure 


Welcome to My Fico Forums! Smiley Happy

 

The correct term is Revolvers and Transactors, not Deadbeats although I've heard some banks might use that term internally.  Transactors pay in full monthly.  Revolvers carry a balance. 

 

Balance chasing generally occurs when someone runs up a balance on many cards (overall utilization climbs) and/or there are late payments or other derogatory information posted on someone's credit file.  Banks will move to mitigate their risk.  Carrying routine balances where utilization is kept moderate to low usually doesn't lead to balance chasing.  It has to be getting out of control. 

 

Credit line decreases may come about when someone's utilization climbs, derogs increase, or even when someone is not using their account.  From my experience, for transactors who PIF, even if they don't run up a huge statement balance as a percentage of their credit line, lenders will not do CLD.  I have high credit limits that have not been decreased even though I don't use the majority of them.  On the other hand, I have been CLD'd in the past when I was carrying a lot of debt.  In some cases, accounts were even closed by the lender. 

 

So while lenders do love those revolvers who pay them interest, they do not usually penalize those transactors who do not.   Transactors are important to the banks also because their more reliable credit profile entails less risk and they generate the banks a lot of swipe fees even if they aren't paying interest.  Also, some banks are also making money from their credit card customers from other sources such as bank deposits and loans, so the credit card fees are only part of the picture.   So your boss is a good example when it comes to banks loving transactors. 


Deadbeat is an internal term for those who always PIF. 

Not sure how profitable transactors or deadbeats are to the issuer once prominent rewards structures came into place.

Message 11 of 21
Anonymous
Not applicable

Re: Revolvers vs deadbeats?


@coldfusion wrote:

@Anonymous wrote:

Banks use the term deadbeats, so definitely not my term. Just used it as reference 


This is one context in which I never have a problem being referred to as a deadbeat.

I've never had a problem with an issuer because of it either.


We call some issuers predatory. They probably don't like it even if its true.

Message 12 of 21
Anonymous
Not applicable

Re: Revolvers vs deadbeats?

I always PIF unless in a 0% promo. I use each card every month. Never had an issuer-initiated CLD. My CLs have grown. 

Message 13 of 21
Anonymous
Not applicable

Re: Revolvers vs deadbeats?

Carrying a balance even for long periods of time will not get you balance chased. I think because people read about it here they think its a common occurrence. Its not. Usually the consumer profile has changed in much more negative way compared to when they were approved in addition to long periods of high balances. Its the whole reason banks do monthly AR pulls. In the past I have carried five figure balances for years and was never balance chased. Just the opposite. 
If you are affraid to use your credit for fear of what a lender might do....get another lender. The average consumer never ever thinks about this.

Message 14 of 21
tcbofade
Super Contributor

Re: Revolvers vs deadbeats?

As others have mentioned, I'm both.  DW and I are carrying balances at zero and 1.9% on several cards.  We have several other cards that we use and pay in full every month.

 

The only AA we've seen in the last five years was from Barclays... and they're known to be a bit skittish.  We now have no balance with them, and both cards are sock drawered, and they'll close them when they do.

 

 

05/01/24 Fico 8: EX 763, EQ 802, TU 783.
Fico 9: EX 756 03/13/24, EQ 790 02/04/24, TU No idea.

Zero percent financing is where the devil lives...
Message 15 of 21
Anonymous
Not applicable

Re: Revolvers vs deadbeats?

First, in my line of work, a Deadbeat is someone that doesn't pay. Interesting to learn that I am a Deadbeat in the eyes of the banks. While I do PIF all of the time I have had no decreases. Some cards seldom see daylight, but do have small repeating charges i.e. NexFlix. I try to utilize all of my cards to avoid a decrease. Presents are sometimes purchased at Buckle just to keep it active.

Message 16 of 21
Save-n-Invest
Established Contributor

Re: Revolvers vs deadbeats?

I'm always pay in full. American Express has taken AA twice in less than five years. Scores are north of 800 and have been during that time period. Amex has also tried to weasel out of honoring reward structure. My problem child.

 

My normal card issuers have never taken AA of any kind. I tend to use those more frequently to avoid hassles and wasted time on the phone resolving issues. 

Message 17 of 21
Kforce
Valued Contributor

Re: Revolvers vs deadbeats?


@coldfusion wrote:

@Anonymous wrote:

Banks use the term deadbeats, so definitely not my term. Just used it as reference 


This is one context in which I never have a problem being referred to as a deadbeat.

I've never had a problem with an issuer because of it either.


+ 100

A long, long time deadbeat with no issues.

Message 18 of 21
K-in-Boston
Credit Mentor

Re: Revolvers vs deadbeats?


@Save-n-Invest wrote:

I'm always pay in full. American Express has taken AA twice in less than five years. Scores are north of 800 and have been during that time period. Amex has also tried to weasel out of honoring reward structure. My problem child.

 

My normal card issuers have never taken AA of any kind. I tend to use those more frequently to avoid hassles and wasted time on the phone resolving issues. 


There is more to this story.  American Express does not give AA solely for pay in full and scores north of 800.  This describes a very large segment of their membership population.

Message 19 of 21
Anonymous
Not applicable

Re: Revolvers vs deadbeats?


@K-in-Boston wrote:

@Save-n-Invest wrote:

I'm always pay in full. American Express has taken AA twice in less than five years. Scores are north of 800 and have been during that time period. Amex has also tried to weasel out of honoring reward structure. My problem child.

 

My normal card issuers have never taken AA of any kind. I tend to use those more frequently to avoid hassles and wasted time on the phone resolving issues. 


There is more to this story.  American Express does not give AA solely for pay in full and scores north of 800.  This describes a very large segment of their membership population.


I would never expect a cardholder to get AA from Amex for that either, unless they don't use their card much or they are involved in MS.

Message 20 of 21
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