Credit Card Companies Call Me a Deadbeat, and I'm Proud of It. Here's Why

My oldest credit card just turned 13, which means as much time has passed since I was a freshman in college. I don't know what the credit card company expected from me back then -- or why it approved me for a cash back credit card on my first go -- but I have definitely disappointed it. In fact, my credit card company would likely call me a deadbeat. Here's why. 

Credit card companies make money when you don't pay your bills in full and on-time 

In my 13 years of using a credit card, only twice can I remember carrying a balance. The first was when I didn't understand how APR worked (whoops) and got a rude awakening upon seeing the interest charge on my account. The second was when I had a little credit card debt after traveling for 20 months. 

Between the two, the interest I paid wasn't severe. I'm being generous, but I may have paid around $100. In the same amount of time, I've earned thousands upon thousands in rewards, welcome offers, and cash back from credit card companies -- even earning $1,645 on one credit card in a single year. 

When folks like me take advantage of credit card rewards and don't carry a balance, credit card companies apply a special term: deadbeat. From their perspective, we're sinking costs, non-productive assets, people who stay away from egregious APRs, who take rewards, and who don't dish out cash for interest payments. 

A good chunk of a credit card company's revenue comes from interest income. To give you some perspective, credit companies earned about $76 billion on interest fees in 2021. When you consider that credit card companies posted $176 billion in revenue for the same year, you'll understand just how important interest payments are. 

How to be a deadbeat credit card user 

If you want to take advantage of your credit cards, here are three rules for how to be a deadbeat. 

1. Pay your bills in full and on time: Unless you have a 0% intro APR period, this is the best way to avoid credit card debt. Paying your full balance and refusing to carry charges from one billing period to the next ensures you won't pay credit card interest. 
2. Apply for rewards cards that match your ordinary spending: In other words, create a suite of credit cards that will maximize your rewards. This could take some time, but ideally you should be earning at least 3% to 5% on nearly every purchase, save for those that charge credit card fees, like DMVs (ugh).    
3. Use all your perks: Most credit cards often come jam-packed with additional perks, like valuable insurance. Sometimes these perks aren't advertised clearly, so be sure you dig into your card's fine print to understand its rewards potential. 

If you're doing all these consistently, then congratulations: you, too, are a deadbeat. Now take advantage of your card's rewards or better yet -- take a look at some of today's best credit cards to see how yours compares.