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Why do rich people still have credit cards?

2 minutes minutes read

Credit cards might seem like an option to get out of emergencies, but that is not what they are only for. These are the reasons why wealthy people continue to use credit cards.

Afford the debt

The first reason why rich people still use credit cards is because they can afford their debt. You should always use your credit card wisely, not acquiring a debt that you can’t afford.

Credit history

When you only use cash, nothing you buy goes to your credit record, so you will not be able to access bigger loans and credits in the future without an accurate credit score. Wealthy people take advantage of credit cards because when they need to get a loan, they have access to larger ones because of their credit history.

Liquidity

Rich people use their credit cards in order to keep their cash available if an emergency pops-up. This way, they can always cover their short-term emergencies without hurting their  credit score.

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Arturo Mendez

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