Why Rich People Love Credit Cards

A table of four paying the bill with a credit card at a restaurant.

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Wealthy people may not need credit cards -- but they can still benefit from them.

The dangerous thing about credit cards is that they can open the door to debt. Someone who can't really afford a purchase can charge that item on a credit card, carry a balance for many months, and accrue a ton of interest by the time that purchase is paid off.

In fact, people often rely on credit cards when they can't make ends meet with their paychecks alone. But it's not just lower earners who use credit cards often. Wealthy people use credit cards all the time, too. Here's why credit cards are beneficial to the rich.

1. They offer free money or money-saving perks

A big reason many people become wealthier is they take advantage of every opportunity to boost their earnings. And scoring cash back on essential purchases fits into that system.

Anyone who uses credit cards can routinely rack up reward points or cash back on their purchases, no matter their income status. The difference is that people with a lot of money tend to spend more money -- and so they score even more cash in the process. Also, wealthy people may be more likely to qualify for credit cards that offer uniquely generous reward programs, maximizing their cash back, air miles, or hotel points.

Plus, some credit cards offer benefits that allow rich people to keep more of their money. Travel reward cards, for example, commonly offer perks like free checked bags or money off in-flight purchases that make vacationing less expensive. And while the wealthy may not need the discount, they probably appreciate it.

2. They can offer access to special events

Some credit cards offer cardholders early access to concert tickets or sporting event passes. Others offer VIP seating. Granted, the wealthy may have other channels to access tickets and VIP status, but credit cards can be an easy way to skip the line.

3. They're just plain convenient

Wealthy people don't necessarily carry around bundles of cash, so when they hit the stores or want to make a purchase, credit cards are an easy way to pay. Because the wealthy may not have to worry about racking up balances they can't pay off, credit cards may allow them to shop more freely.

Clearly, there's a lot for wealthy people to love about credit cards. But the reality is that you don't have to be rich to make the most of your credit cards. You can be an average earner and still take advantage of cash back programs, money-saving benefits, event access, and the convenience of not carrying cash all the time. Just don't go overboard on spending, so you can enjoy your credit cards without landing in financial trouble.

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