c. l
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Additude and Logic are both right (money may be tied up in assets or investments and credit must be used in order to establish and maintain good overall credit ratings), PLUS no one can steal more than $50 from them if they should get a hold of their credit card (or credit card number), PLUS carrying cash (or a card with quick access to a great deal of cash) puts a person in a more vulnerable state, PLUS credit card holders with good risk credit ratings often do not pay any annual fee, PLUS most "rich" people pay off their cards monthly or at least very quickly in order to avoid any interest at all, PLUS many receive the lowest rates when they do carry a balance, PLUS many receive special discounts and other incentives for using their cards, AND ALL receive a nice organized record of accounting for their expenditures in the form of the monthly bill from the credit card company. Oh yeah, it is also easier to contest an incorrect bill or a bad-faith merchant with a credit card than with a debit or bank checking card.
And, of course, THEIR money is MAKING money during the 30 (plus or minus) days that they get to enjoy their purchases without paying for them.
Hope this helps!!
Thanks for your question and Bless You!! |
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Uncle John
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The key to money management is to keep your money as long as possible. If I pay for something on the day I buy it - that money is gone. If I charge it - the bill may not come in for another 25 days and I can wait ten or twelve days before paying it. That gives me over a month where that same money remains in an account earning interest.
That's why credit cards make more sense than debit cards. |
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Mr Mugg
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Because a typical credit card allows you to take 30 days to pay the balance without incurring any interest charges... during that 30 days, you are able to MAKE interest off the cash sitting in the bank. If you had paid cash, you would not make any interest off the money... as long as you pay the outstanding balance before the 30 days are up on your credit card, it's all good. |
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bernies_mom22
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It increases you credit score if you actually use credit--but you should be "rich" enough to pay your balance off in full each month for that to work.
Keeping a balance month to month is dangerous, even if you are "rich" and defeats the purpose |
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Jesus Quintana
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because they have a large portion of their money invested. it's out making more money. they also want to maintain good credit. just because your rich doesn't mean you aren't going to need the occasional loan from the bank... |
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Bogie
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for the rewards or miles. so they don't have to spend as much on plane tickets or hotel rooms. |
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sahel578
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for amex membership reward points
and also for purchase protection |
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murrayc
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using a credit card, you can get the "float" of daily interest on your money until the bill comes. on a debit card, the $$$ is deducted right away. |
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wigginsray
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Because if you pay your credit card bill on time, there is little cost. A debit card typically carries larger fees per transaction. Credit cards typically have rewards programs that provide incentives to spend. |
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komputamuso
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Most, if not nearly all, of their ready money would be tide up in investments. As my Dad used to say, he was a millionaire but the title didn't mean squat because he couldn't lay his paws on a penny as it was all tied up in property. Plus it means that you get an interest free loan for thirty days... |
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hopetohelpyou
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Sometimes people use them to build up points say to go toward a new car you get so many dollars off, or for flying. Maybe that is what they are doing and in a round about way, that is how they have more money, as long as they pay off the credit card every month. |
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Logic
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To build credit and maintain it. |
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Sexy T
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For good credit scores! |
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rubberduckie20013
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Not just rich people use credit cards. Everyone should use credit cards responsibly to build and maintain their credit rating and score. |
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maddy
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my parents give them to me to use because im in med. school away from home and they pay for everything so they give me credit cards to see what i buy, because they don't trust me with direct access to their bank account...and they know if i had direct access to their bank account i would go straight to the nearest saks fifth and spend like crazy. |
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yog
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may be the rich ppl do not wish to carry more money due to fear of theft.
also they me feel to show off to the world that they are credit worthy. |
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justme
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To track spending, to earn bonuses like air miles, to separate personal expenses from business expenses, to protect their purchases ( some companies will protect purchases made using their card), so they have no worries about how much funds they have in a particular account... other than that, I don't know because I'm not rich! |
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Nancy
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Its cooler to do so. |
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additude
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cause they don't have any money in the bank. It's all in their assets. |
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Dmitry
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Couse they have no money. They have businesses. |
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aj
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people say they don't have money in the bank, this isn't true all rich people have personal wealth and not just companies. most use credit in order to build up personal wealth or use credit cards because the items are throw away |
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