Why do rich people never use debit cards? This is the real advantage of credit cards! 🏦🔥
The moment you swipe your debit card, the rich have quietly made a fortune. 💳💰
You may ask: Shouldn’t the richer people spend more “their own money”? Why do they prefer to swipe credit cards instead of debit cards?
This is not a coincidence, but a strategy.
Today we will reveal the secret behind the rich not swiping debit cards and only using credit cards. When you finish reading, you may also rethink every purchase you make. 👇
🚫 Debit Card VS 💳 Credit Card: Don’t think it’s safer to “use your own money”
Debit Card: Spend your own money
Debit Card directly deducts money from your bank account, and it deducts as much as you use. It sounds reasonable, right? “Live within your means”, isn’t this the basis of financial management?
But the problem is – you are using “your own money” instead of “the bank’s money”.
Once there is fraud, theft, or even just a mistake by the merchant, the money has already flown away from your account. ⛔️
Fraud liability issues:
After encountering fraud using a debit card, users may have to wait 10 days or even longer to get the money back. During this period, what about your rent, utility bills, and living expenses? 😨
Legal protection is weaker:
According to the Electronic Funds Transfer Act (EFTA), the liability protection of debit cards is far less than that of credit cards. As long as you find out that the card has been stolen after 48 hours, your maximum loss may be $500 or even more.
✅ The underlying logic of credit cards: making money with other people’s money
The rich know a truth: true financial freedom does not rely on saving money, but on using money.
And credit cards are one of the most easily overlooked financial leverage tools by ordinary people in modern society. 💼⚙️
1. Borrow money for free and manage money with the bank’s money
The credit card bill cycle is usually 30 days, plus a 20-25-day interest-free grace period, a total of almost two months. During this period, you can “use the bank’s money for free.”
The truly smart people will do it like this:
Pay the bill with a credit card ➡ The money is still in your bank account ➡ Use it for short-term investment ➡ Pay it off in one lump sum upon maturity ➡ Earn interest + points
Isn’t it a bit like “free capital”? 😉
2. Points, cashback, travel rewards, one card for multiple benefits 🎁✈️
Rich people love to travel, but they rarely pay for it themselves. They will use credit card points to redeem:
Free air tickets 🛫
Prestige hotels 🏨
Upgrades 💼
Free orange juice and coffee, free use of VIP lounge 😎
Many high-end credit cards such as Chase Sapphire Reserve and The Platinum Card® from American Express can provide:
$300 travel reimbursement per year
Airport fast lane (TSA PreCheck / Global Entry)
Automatic upgrades at luxury hotels
Hundreds of dollars in Uber, air tickets or entertainment benefits per year
This is not spending money at all, but earning benefits.
3. Credit score is “economic identity”
In the United States, credit score not only determines whether you can apply for a loan, it also affects:
Mortgage interest rate
Car insurance cost
Rental qualification
Background check for certain high-paying jobs
The rich know that maintaining a good credit record is the “passport” for their asset operation.
Swipe the debit card, there is no record; and every time you swipe the credit card and pay it back on time, you are building a good financial resume for yourself. 📈
💡 True story: The middle class swipes the debit card, and the rich use the credit card to get a first-class ticket
Imagine:
A middle-class employee with an annual salary of $80,000 uses a debit card to consume every month, without any cash back or points, and does not build a credit history.
Another entrepreneur with an annual income of $100,000 uses a credit card to pay all bills and gets:
$1,500 travel points/year
Free first-class upgrade
He also uses the card to pay off all expenses before the year-end tax refund, and then pays off all expenses at once, making the cash flow in the account extremely smooth
It seems that they earn about the same, but their financial management methods are very different. Who is the real “life master”?
🧠 Rich people’s thinking: make every penny return
This is the core concept:
Using a credit card is to turn every consumption into an asset investment.
While using the card, you accumulate points ➕
Build a credit history ➕
Retain bank cash flow ➕
Get free insurance (such as car rental insurance, shopping protection) ➕
Enjoy credit card protection rights (such as refund disputes, travel cancellation compensation) ➕
Credit cards are not “toys for rich people to show off”, but “essential tools for smart people” 🛠️
🧨 Then why do some people say that credit cards are not good?
Because many people don’t understand how credit cards work:
They only see the high interest rates, but ignore that as long as they pay in full, they won’t be charged interest.
They only worry about “debt”, but don’t realize that credit cards are helping them build assets.
The real trap is not credit cards, but the unplanned use of credit cards.
✨ Operations exclusive to the rich: You can also use credit card black technology!
“Manufactured Spending” technique:
Some people even use credit cards to buy returnable goods with full limits, and then return them to their checking accounts to achieve “free points”.
Multiple credit card accounts are used in a scattered manner:
Use different cards to handle daily consumption, travel, gas, and supermarkets respectively – each category has the best cash back.
Separate commercial credit cards and personal credit cards to create a “dual credit system”
Entrepreneurs use commercial cards to leverage higher limits, save taxes and improve company reputation.
✅ How to use credit cards correctly (ordinary people can also play like the rich)
If you want to start changing your mindset and upgrade from debit cards to credit cards, here is your action guide:
✔ Pay in full every month
Never pay only the minimum amount. Paying in full is “free money”.
✔ Choose high-value cards
Such as Chase Freedom Unlimited, Amex Gold, Citi Custom Cash, etc., with high cash back rates and strong benefits.
✔ Control utilization within 30%
“Credit utilization” accounts for a large proportion of credit scores. Even if the credit limit is $10,000, try to control spending within $3,000 per month.
✔ Review your credit report every year
Use AnnualCreditReport.com to get your own credit report for free to prevent fraud and information errors.
📢 In the end: Poor people save money, rich people use cards to make money
In this era of highly developed finance, using credit cards is not just convenient, but a smart lifestyle.
You can continue to use your debit card as an “honest person”, or you can start making every expense work for you from today. 💼
The secret of credit cards is not a luxury, but an opportunity brought by information gap. And now, you already know this secret. 😉
📌 Quick summary
Item Debit card Credit card
Source of funds Own money Bank’s money
Fraud protection Weak Strong ($50 liability cap)
Points and cashback ❌ None ✅ Multiple rewards
Credit score building ❌ No ✅ Yes
Additional benefits ❌ Very few ✅ Large travel/shopping protection
Financial leverage ❌ None ✅ Yes
✨ Stop just spending money, start making every penny you spend return to you!
The ultimate guide from novice to expert!:
Credit Card Handbook
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