Citing convenience and low interest rates, many credit-card holders prefer to leave a balance on one or more credit cards and accept revolving as a way of life, and this is helping issuers generate more interest income, a survey by Auriemma Consulting Group concluded.
The company surveyed 508 U.S. credit cardholders online in March. About 55% of respondents said they are revolvers and prefer to pay credit card balances off over a specific time frame. Of those individuals, 49% said they carry a balance on only one card, while 31% said they carry a balance on two cards.
Only about 20% of respondents said they carry a balance on three or more cards, according to Auriemma.
Many revolvers have a tendency to regard their credit cards as a way of "obtaining unsecured loans they can keep for several years," said Bob Taglin, editor of Auriemma's Cardbeat report.
"If they pay off their cards, cardholders may then be inclined to find another card with a balance and repeat the same behavior for many years, which can be profitable for issuers," Taglin said.
Many cardholders choose "a cycle of borrowing, repaying and borrowing again to support their financial needs," he said.
