Do millionaires use credit cards? Yes, so should you.

If you use a reward credit card, you're more like a millionaire. Although most adults have credit cards, millionaires are even more likely to use them. According to the Federal Reserve, almost all adults who earn more than $100,000 are in the name of credit cards.

But if millionaires are so rich, why do they rely on credit? Credit cards also offer a lot of benefits for super wealthy. However, you don’t need a seven-digit net worth to take advantage of these benefits.

Millions use credit cards due to the convenience and allowances they provide. These are some of the key benefits of using a credit card – even for those who can easily afford cash purchases:

Millions earn valuable rewards by using credit cards from paying for groceries to buying clothing. For example, some cash reserve cards offer a 5% backup on certain purchases, or you can use a travel credit card to earn points or airline miles that you can redeemed for your trip.

Consider a card like Capital One Venture Rewards Credit Card. This credit card offers a base income rate of 2x miles on all eligible purchases. If a millionaire buys $50,000, that's 100,000 miles (the equivalent of $1,000 for travel). The purchase they are already buying is not a bad reward.

As far as the average consumer is concerned, we don’t have to spend millionaires to earn a lot of rewards. If your fees are coming, you can pay with a new card and earn a credit card registration bonus. This can instantly improve your reward bank without overspending.

2. They get card protection and insurance coverage

Millions use credit cards because many credit cards will automatically provide you with protection and insurance. For example, Chase SapphirePreferred® cards provide the following protections:

Some cards, such as Ink BusinessPreferred® Credit Cards and Wells Fargo ActiveCash® Credit Cards, offer cell phone protection.

Making a lot of money is one thing, but it is another to grab that money in a different way with good money habits like protecting your purchases. And some credit cards offer an easy way to ensure you have automatic protection in terms of eligible purchases.

Read more: Get the most out of your card: How credit card protection works

Despite income, millionaires still face some of the same annoyances or pressures when traveling, such as long queues at the airport. By using cards like Capital One Venture X Reward Credit Cards, they can reduce the stress of the experience by leveraging the following privileges:

Read more: Deluxe cards have the same benefits as Amex Centurion (you actually qualify!)

One of the reasons millionaires use credit cards instead of cash or debit is because of the protection of fraud they provide. In most cases, your maximum liability for unauthorized purchases is $50 if your credit card is lost or stolen.

By contrast - depending on how quickly you report your fees - you may be responsible for all unauthorized transactions using your debit card.

Read more: How to protect yourself from credit card fraud - and the most dangerous places

Tracking spending with cash can be difficult. Unless you keep diligent records and store receipts, tax seasons can be particularly challenging.

Credit cards allow you to sync your account with your favorite budget or bookkeeping software. You can quickly view your records to see how you spend money in history, trends in spending habits, and even look for specific transactions in the past. These records can make it easier for you to find your charitable donations, medical expenses, and other potential deductions when you pay taxes.

Read more: How much can you pay taxes with a credit card?

Credit cards are usually more convenient than cash or paper checks. You don't have to worry about stopping withdrawals with your debit card on your ATM, you can add your credit card to your phone for contactless or mobile payments.

Read more: How to Transfer Expenses from Debit Card to Credit Card

Unique cards for the rich include the American Express Centurion Card (Amex Black) and the JP Morgan Reserve Card. However, rich people use various types of credit cards usually available for anyone with any qualification, such as American Express and the Platinum Card® of Chase Sapphire Reserve®. Please note that many popular travel cards usually require at least a good credit score.

Rich people have money to pay off credit card debts without having to carry a credit card balance, so they don’t have to worry about high interest rates or annual fees. Instead, they can focus on the benefits of credit cards, such as earning rewards to continue building wealth, leveraging travel allowances, and using card protection and insurance.

They gained many of the same benefits that average cardholders can get from credit card companies, including:

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