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Home > I am a Revolver, not a Transactor

I am a Revolver, not a Transactor

March 17th, 2015 at 06:40 am

No, not a gun.

Was doing some reading this morning and today's article was about the two types of credit card users there are. A "revolver" is the name given by the credit card industry for a credit card holder who carries a balance continually. They have a revolving balance. A "transactor" is a credit card user who simply uses the credit card for transactions and pays the balance off in full each month.

The scary part of this article is in Australia 2 out 3 credit card users are transactors, yet the 1 in 3 credit card users who are revolvers fund the entire credit card industry! Yikes. Makes me really want to get out of the revolving credit card cycle and into a transactional credit card cycle. The whole it being in your interest to watch the interest that you have to pay and all.

I don't think there's anything wrong with credit cards- used correctly they are a loan in your name that you don't have to go through a lengthy application process for. It's just misuse of the credit cards which is clearly painful for us (credit card users) and a big win for credit card industry.

I thought this article was really interesting, wanted to share.

Posted in Debt, Education, Random | 8 Comments »

8 Responses to “I am a Revolver, not a Transactor”

  1. scottish girl Says:
    March 17th, 2015 at 08:56 am 1426582582
    1426582582

    Me too

  2. VS_ozgirl Says:
    March 17th, 2015 at 09:44 am 1426585486
    1426585486

    Yeah it's unfortunate isn't it! Eventually once these cards are paid off I want to switch over to rewards type cards and pay them off in full every month. The credit card industry can start paying *me* back Smile

  3. CB in the City Says:
    March 17th, 2015 at 12:24 pm 1426595050
    1426595050

    I used to be a revolver, but I've been a transactor now for about 10 years. It feels really good!

  4. Joan.of.the.Arch Says:
    March 17th, 2015 at 02:52 pm 1426603952
    1426603952

    Ah, yes, get yourself to the transactor category as soon as you can. Wink

  5. chloe Says:
    March 17th, 2015 at 07:09 pm 1426619344
    1426619344

    Interesting post! I'm amazed that only 1 out of 3 are revolvers. I'm pretty sure it would be much higher in the U.S. I like your plan to start to get some of that money back through CC rewards, once you become a transactor! Smile

  6. bluesfemme Says:
    March 17th, 2015 at 07:52 pm 1426621940
    1426621940

    VS, it's an a amazing feeling once they start paying you :-) You're doing well focusing on knocking down those cards.

  7. Shiela Says:
    March 18th, 2015 at 12:44 am 1426639466
    1426639466

    Was always a transactor to start with until DH was unemployed for 1 and 1/2 years then we become a revolver for about 4-5years. Thankfully, we are now a transactor again for over 5 years now.

    I agree that there is nothing wrong with using CC. Just use it wisely. Funnily I have never had a CC in my name, just never need to it's all in DH's name.

  8. VS_ozgirl Says:
    March 18th, 2015 at 06:38 am 1426660724
    1426660724

    Thanks guys! Chloe I was interested to see how the US compares to Australia with percentages for each type of user and according to creditcards.com as of 10-03-15 U.S. also has revolvers accounting for 1 in 3 users.

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