Here’s why most American millionaires use credit cards for all their purchases — and why you should too

7 months ago 101

It's a common misconception that the superrich steer clear of credit cards, but that couldn't be further from the truth.

In fact, an international study of high-net-worth individuals, conducted by Altiant, revealed that credit card use is a way of life for the wealthy — with half of them (49%) using them daily, and 31% using them more than once a day.

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Of that cohort, only 4% of high-net-worth individuals don’t own a credit card, and a mere 15% have just one. However, nearly half (47%) own two or three, while 34% have four or more.

While it may seem odd for people with so much money on hand to use credit cards, the reality is that there are plenty of good reasons millionaires keep their cards handy, from rewards to free travel insurance.

The good news is that many of the perks rich people get from their cards are available to everyone.

Wealthy people love credit card perks

When deciding which credit cards you should have — and how many — it’s important to consider where you do the majority of your spending.

Different cards offer cash back, rewards, low interest, or no interest. Having a couple of cards is a good way to maximize the perks and avoid high interest costs.

Credit cards are typically quite secure, with strong fraud protections in place to safeguard cardholders. They can also offer purchase protection, return protection, and extended manufacturer warranties. Others may include travel or rental car insurance perks.

Some cards — especially those used by wealthy individuals — may also offer additional luxuries, such as airline lounge access or concierge services.

Credit cards help you earn a good credit score when used responsibly.

This can open the door for more affordable financing on big loans, such as mortgages. It can even give you more opportunities to do business with companies that will see you as trustworthy, thanks to your solid record.

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