Being called a “deadbeat” can’t possibly be a good thing, right? Wrong. As a credit card customer, being referred to as a deadbeat is a great thing. It’s just not so great for the credit card company. Let’s take a look at what credit card companies refer to as deadbeat cardholders, and why you should want to be one.

What are “Deadbeat” Credit Card Customers?

“Deadbeat” is a dirty word. It might bring about images of credit card users who don’t pay their bills — similar to “deadbeat dads” who don’t help to support their kids. But that couldn’t be further from the truth.

When it comes to cardholders, “deadbeats” are actually the customers who pay off their credit cards religiously every single month. They never carry a balance. Of course credit card companies make money when you do carry a balance and pay interest and / or fees, so even though it’s in your interest to pay off your balance regularly it’s not in their interest — hence the term “deadbeat.” You’re using their service (and maybe getting their perks), but you’re not helping them profit.

Why You Should Want to be a “Deadbeat” Cardholder

Whether or not the credit card company makes a profit isn’t really your concern. Your job is to worry about what you earn and spend. If paying off your balance in full every month is realistic for you, you should do it. You can potentially save a lot of money on interest payments, and you’ll never have to worry about things like late fees.

If you happen to use a no annual fee credit card like the HSBC credit card, that means you’re avoiding all of the big costs involved in using a credit card. So being a deadbeat cardholder is like getting free short-term financing and perks!

Are there exceptions to the rule, where being a deadbeat cardholder might not be the best idea? Sure. If you’re the type of person who specifically uses credit cards for long-term financing of large purchases, it’s unlikely you’ll be able to pay off your credit card balance in full each month. But in that case you can at least use just one credit card for financing and be a deadbeat customer with any other cards you might have — if nothing else it will help you minimise your overall costs.

Don’t let the term “deadbeat” turn you off. When it comes to being a credit card customer, there aren’t many better things you could be called.