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Do wealthy people use credit cards differently?

Do wealthy people use credit cards differently?
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Adopting the habits of wealthier people could be a logical approach for individuals who are seeking to improve their financial circumstances. In some cases, of course, wealth may have been acquired through luck or inheritance. However, in many cases it could be due to the approach people take to managing their finances.

With that in mind, here are three areas where wealthier people may use their credit cards differently. Adopting these habits where possible could help to improve your financial situation in the long run.

One card

With there being a wide range of credit cards on offer, it is easy to have more than one credit card. After all, opening a new account can be done online in less than ten minutes in many cases. This means that it is becoming increasingly common for individuals to have more than one card. In some cases, this can be a logical move. One credit card may offer reduced fees when spending abroad than another, for example, and it could be logical to use one when in the UK, and the other when abroad.

However, having more than one credit card can make it more difficult to keep track of overall spending each month. Having just one card could help to limit your spending, and boost your bank balance over the long run.


In recent years, the range and appeal of rewards cards has increased. Some credit cards offer cashback rewards, while others provide vouchers to spend at your favourite stores. There are even rewards cards which do not charge an annual fee, thereby making them even more appealing to a wide range of consumers.

While rewards cards can encourage consumers to spend more than they otherwise would, the cashback and vouchers they offer can build up to significant sums during the course of the year. Furthermore, some banks offer greater perks when an individual has their current account at the same financial institution. This may further improve your financial standing over the long term.

Interest payments

Wealthier people may be less likely to miss payment deadlines because they have ample cash reserves. And they are usually less likely to carry a balance over to their next statement. By paying off their credit card on time and in full each month, they avoid interest costs. This may not make a huge difference to their financial situation in the short run, but in the long run, interest costs charged on outstanding debt are likely to mount up.

For individuals who are presently unable to pay off their credit card balance in full each month, a balance transfer card could be a worthwhile option. It provides an interest-free period on existing debt which could be as long as 32 months. Transferring existing debt to a 0% balance transfer card could provide an individual with the necessary breathing space to get back on track with their payments, and avoid costly interest payments.


Managing your finances is never an easy task. However, through maximising the rewards available on a credit card, it may be possible to cut the amount you spend each year after cashback and vouchers received are factored in. Having only one, or perhaps, two credit cards may make it easier to manage your spending. Similarly, using a balance transfer card could reduce your interest costs in short and long run. Following these relatively simple points, could help you take another step towards joining the “wealthy” yourself.

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