Today's Headlines: Nearly Half Of Credit Card Accounts Carry A Balance

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Revolver or Transactor?

Are you a "revolver" or a "transactor"? If you have an active credit card account, you fall into one of those categories. Based on recent data from the American Banker's Association (ABA), you are far more likely to be a revolver than a transactor, and that is good news for the credit card industry.

According to the ABA's Credit Card Market Monitor for the fourth quarter of 2016, revolvers hold 43.7% of all credit card accounts while transactors hold only 29.1%. The remaining 27.2% of accounts have no activity and are considered dormant. That means almost half of all credit card accounts — and 60% of active accounts — carry a balance.

To fully understand transactors and revolvers, consider your credit card account the way credit card companies do — in the context of loaning money.

It's Not The Card, It's How You Use It

If you never charge more than you can pay off at the end of any month, your credi...

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