The wealthy are among the most admired and adorned individuals in society. They can be likened to gods in human forms, envied, talked about, and respected. Due to their tremendous wealth, they command a huge fan base crammed with individuals aspiring to be like them. Who wouldn’t want to be wealthy and splurge $259m on a fancy yacht? Of course, everyone would jump at the opportunity of being in these people’s shoes, even for a few seconds. However, before you cook up such a bizarre imagination, it is wise to understand how the wealthy behave. How do they spend or save? What do they invest their time in? Do they use credit cards like you?
Unlike a typical salary earner, most billionaires don’t own credit cards as they can afford whatever they want. The few billionaires that embrace credit cards do so because of the benefits that come with its use and not the line of credit it offers.
Billionaires can sometimes be likened to humans from outer space. Or some super-human with unimaginable brainpower. How would you explain a net worth of almost $200B, all belonging to an individual? Isn’t that outrageous? Or has money suddenly become easy to make, like tea? If yes, then why is your net worth below $1m? If no, how are the wealthy still growing in wealth? Well, while I leave you to think about that, let’s consider something much different. Do billionaires use credit cards? If you have always been itching to find out a few things regarding the spending technique of these folks, this article provides you with a good head start.
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Do Billionaires Use Credit Cards?
An average American has several bills strapped to his throat, crying to be sorted out. In addition to the huge bills, which are sometimes the source of sleepless nights, there are also a few or a massive list of debts screaming to be paid. Life isn’t rosy for an average American who earns $4,000 per month and spends almost double that figure in two weeks.
Thus, an average American will apply for a credit card to ensure that he caters to himself, his kids, his wife, and other individuals who look up to him for financial support. Owning a credit and a debit card should offer such an individual a little financial stability. Whenever there is money, he spends it using his debit card. And whenever he needs a line of credit, he swipes his credit card. Simple.
What about the Tycoons?
Unlike the average American who switches off a few appliances in the house to save energy. Or decides to take the bus on a rainy day to save transport, a billionaire commands a huge amount of money, billion dollars to be precise.
If they want to purchase 5 Lamborghini Urus or a Luxury Pent House beside Miami Beach, shelling out the cash should be as easy as buying a $10 candy. Of course, they have lots of money, so spending it is often not a problem.
Tell me, whenever you think of one of these billionaires, have you ever considered how they spend? I mean, whether they use credit cards like the average American or probably have a special type of card that comes with breathtaking features?
Before I quell your curiosity, let’s consider what a credit card is. Afterward, I’ll let the cat out of the bag in style, offering you full details and reasons to support my answer.
What Is a Credit Card?
As you probably know, a credit card is a thin rectangular plastic or metal issued by a bank or financial services company. This special card allows owners to borrow money to pay for goods and services with merchants who accept payment cards. Credit cards impose the condition that cardholders repay the borrowed money, including any applicable interest or charges, either outrightly by the billing date or over time. An example of a credit card is the Chase Sapphire Reserve.
Aside from the typical credit line, the credit card issuer may also grant a different cash line of credit (LOC) to cardholders, allowing them to borrow money in the form of cash advances that can be gotten via bank tellers, ATMs, or credit cards convenience checks. Such cash advances normally have diverse terms, like no grace period including higher interest rates, in contrast to those transactions that access the primary credit line.
Normally, you expect these tycoons to afford almost anything they want, from luxury houses to cars, gadgets, accessories, vacations, etc. But that doesn’t mean that they don’t use these cards. Some billionaires own credit cards that can be used in various day-to-day transactions and for larger purchases. These credit cards are often unique, with multiple accessible via invitation only.
Sometimes, these billionaires use credit cards due to the convenience it offers or the benefits associated with it, rather than because of the line of credit it comes with. It is these benefits that might make credit cards attractive to billionaires.
Why Might Billionaires Use Credit Cards?
Unlike a typical average American, billionaires don’t use credit cards due to the loan it offers. The option to get frequent flyer miles, complimentary hotel room upgrades, travel insurance, and other exclusive benefits may make sense for some billionaires who are always traveling, hence the reason why they use this card.
In addition, many exclusive credit cards are equipped with concierge services, which can be useful for billionaires who want the perks of a personal assistant service wherever they may be.
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What Credit Card Do Billionaires Use?
As I said earlier, wealthy individuals are sometimes likened to demigods. Why? Because with money comes power, and of course, they control megabucks. These super rich individuals, are often provided with exclusive services and products. With that said, you may be eager to find out if they use the same credit card that you use. If not, what credit card do they use?
There are several credit cards available for the average American. But, some credit cards are only available to wealthy people. One of such credit cards is the American Express Centurion Card.
Because of the huge amount of money they control and their high spending power, you expect wealthy individuals to embrace personalized credit cards that may be unavailable to the average American.