If you own a rewards credit card, you might be closer to millionaires than you realize. While most individuals have credit cards, those with high net worth are even more inclined to utilize them. According to findings from the Federal Reserve, nearly all adults earning over $100,000 possess a credit card.
But why do the wealthy depend on credit cards despite their financial status? The answer lies in the myriad advantages these cards offer, which are accessible to everyone, not just the affluent.
Explore more: Top Credit Cards for 2025
Affluent individuals favor credit cards for their convenience and the perks they provide. Here are some of the standout benefits of credit card usage—applicable to anyone, rich or not:
Wealthy people collect valuable rewards through their credit card transactions, whether buying groceries or clothing. For instance, certain cash-back cards offer 5% back on select purchases, whereas a travel credit card can help accumulate points or miles for future travel.
Take for instance the Capital One Venture Rewards Credit Card, which gives an earning rate of 2x miles on all eligible expenses. For a millionaire spending $50,000, that translates to 100,000 miles (equal to $1,000 towards travel), a significant reward for standard purchases.
Everyday consumers do not need to overspend to obtain rewards. Planning large upcoming expenses—purchasing a new appliance or booking travel—can align perfectly with a new card to capitalize on a credit card sign-up bonus, enhancing reward accumulation without unnecessary spending.
2. They enjoy protections and insurance coverage from cards
Wealthy individuals leverage credit cards because they often include extensive protection and insurance benefits. For example, the Chase Sapphire Preferred® Card provides the following protections:
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Collision Damage Waiver for auto rentals
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Insurance for baggage delays
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Extended warranty benefits
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Reimbursement for lost luggage
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Protection on purchases
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Roadside dispatch services
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Accidental travel insurance
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Emergency travel assistance
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Insurance for cancellation and interruption of trips
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Reimbursement for trip delays
Some cards, such as the Wells Fargo Active Cash® Credit Card, also include protection for cell phones.
Making substantial income is just one aspect; protecting that wealth through sound financial habits is essential, and many credit cards simplify that process by providing built-in protections for qualifying purchases.
Learn more: Maximize your benefits: Understanding credit card protections
Even with their wealth, millionaires still encounter travel inconveniences, like long airport lines. With cards like the Capital One Venture X Rewards Credit Card, they can alleviate some stress thanks to perks such as:
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TSA PreCheck or Global Entry credits: Get up to $120 credit for application fees for Global Entry or TSA PreCheck.
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Access to airport lounges: Enjoy complimentary entry to Priority Pass and Capital One Lounge locations.
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Travel concierge service: These services can assist with reservations, hotel bookings, securing event tickets, and even connecting you with medical or legal resources during emergencies.
Discover more: Premium cards with Amex Centurion-level benefits that you can qualify for!
A key reason affluent individuals prefer credit cards over cash or debit is the fraud protection they offer. With most credit cards, your liability for unauthorized charges is limited to $50 if the card is lost or stolen.
In comparison, depending on how quickly you notify your bank, you could bear responsibility for the full amount of any unauthorized transactions using a debit card.
Read more: Protecting yourself from credit card fraud: What to know
Managing expenses with cash can often present challenges, especially during tax seasons requiring careful record-keeping.
By using credit cards, users can link their accounts to budgeting or accounting software, allowing for streamlined spending analysis and historical expenditure tracking. This also facilitates easier identification of charitable donations, medical costs, and other possible tax deductions.
Learn more: Paying taxes with a credit card: A cost analysis
Credit cards often outperform cash or checks in terms of convenience. There’s no need to withdraw cash from an ATM or worry about carrying cash; plus, mobile payments can be effortlessly made by adding your card to your phone.
Explore more: Shifting your expenses from debit to credit smoothly
Exclusive cards like the American Express Centurion Card (often referred to as the Amex Black Card) and J.P. Morgan Reserve Card are distinctive; however, affluent individuals generally use a wide array of credit cards available to anyone who meets the necessary criteria, such as the American Express Platinum Card® and Chase Sapphire Reserve®. It’s important to note that many popular travel cards often require a solid credit score for eligibility.
Wealthy individuals can afford to settle credit card balances without the risk of high interest rates or annual fees. This allows them to focus on the numerous benefits credit cards offer, including rewards for continued wealth accumulation, travel incentives, and the utilization of safety features and coverage.
They benefit similarly to the average cardholder through credit card offerings that include:
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Ways to enhance credit ratings
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Rewards on qualifying purchases
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Card insurance and protection
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Travel benefits like lounge access
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Tracking of expenses
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A convenient means for payments
Editorial Disclosure: The insights in this article have not been reviewed or authorized by any advertising partners. The opinions expressed are solely those of Yahoo Finance and do not represent any other entity. Financial product details, including rates and fees, were accurate at the time of publication. All products or services are presented without a guarantee. For the most current information, refer to the bank’s website. This site does not encompass all offers currently available. A credit score alone does not assure or imply approval for any financial offering.
