There’s a reason the rich keep getting richer and it’s got something to do with their spending habits. They can pretty much pay for anything anytime anywhere. Then why aren’t they seen carrying a wad of cash around with them? Rich people are smart and they know better than anyone else how to use their credit cards to get the most benefit out of them.
Rich People and Credit Cards
Rich people know which card to use and when to use it. They get things they are going to end up buying no matter what and have it charged to one of their credit cards. And since rich people are, well, filthy rich they know that they can pay off their balance at the end of every month. This way they do not have to pay late fees or interest rates and they get up to 6% cash back.
The reason rich people dedicate their credit card is because some cards give the most cash back for different category of items. For instance, a person might have a card that they use for grocery only. This card gives them 6% cash back from the supermarket of their choice. They have another card that they take out only when they have to fill their car’s tank. This card will give them 2% cash back every time. Lastly, they will also have a general purpose card that they pull out for everything else they need to purchase. This general purpose card might give them, say, 3% cash back.
Cash back is not the only incentive credit cards offer to their consumers. Rich people make use of their other incentives too which include price matching, free insurance on car rentals and extended warranties. They know all the tricks of using credit cards in a way that will get them the most out of it. Because of this very reason, rich people improve their credit score which saves them even more money for use elsewhere.
Apart from the obvious convenience credit cards provide, rich people choose to use credit cards simply because it maximizes their cash flow. Cash back is a sizeable reward that even the rich aren’t ignoring.