7 causes the rich use bank cards (despite the fact that they don't need to) – ZDNet

By | September 15, 2022

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Everyone knows that the wealthy — and even the “Millionaire Subsequent Door” varieties — deal with their cash in another way. As a substitute of on the lookout for methods to flaunt their wealth, they actively preserve it hidden. And as a substitute of accumulating “stuff,” they attempt for monetary independence and search out focused alternatives that assist them earn more cash.
So despite the fact that rich of us do not essentially want to make use of bank cards, they nonetheless do. Listed below are seven explanation why:
Since many playing cards provide 1% to 2% cashback for each buy you make, it isn’t troublesome to rack up significant rewards when you spend lots in your playing cards. And when you’re savvy with airline miles, you possibly can simply save hundreds of {dollars} on airfare yearly.
Whereas you should buy your personal journey insurance coverage plan, lots of the high journey bank cards provide completely different types of journey insurance coverage at no cost. Take the Chase Sapphire Most well-liked® Card, for instance. This card presents major auto rental protection, baggage delay insurance coverage, journey delay reimbursement, misplaced baggage reimbursement, emergency help, journey accident insurance coverage, and different advantages.
Additionally: The perfect Marriott bank cards: Get pleasure from additional journey perks 
The cardboard’s journey cancellation/interruption insurance coverage is one other widespread perk. This insurance coverage covers the cardholder and their fast members of the family for as much as $10,000 per lined journey and $20,000 per incidence with a most good thing about $40,000 each 12 months.
It’s a must to use your card to pay for the journey to be lined. However the insurance coverage will kick in to reimburse you in case your journey is cancelled or interrupted for any cause, equivalent to extreme climate, unintended bodily damage, or monetary insolvency of your tour operator or airline.
Whereas the wealthy may simply purchase a journey insurance coverage coverage that gives these advantages, why not get it at no cost when you can? Not solely can they earn rewards for utilizing their card to pay for his or her journey, however they get tens of hundreds of {dollars} in journey protection with out paying for it.
A few of the high journey bank cards provide journey perks that make traversing the globe extra comfy. The Platinum Card® from American Categorical is an efficient instance. Not solely does it provide some fairly epic rewards with its Membership Rewards loyalty program, however it presents entry to the World Lounge Assortment as nicely. This assortment of airport lounges consists of over 1,200 proprietary lounge areas all over the world.
Cardholders additionally get complimentary advantages with Effective Lodges & Resorts, a luxurious journey model, together with as much as a $200 airline payment credit score for checked luggage and in-flight purchases. Final however not least, cardholders get a credit score to cowl the prices of making use of for World Entry or TSA Precheck — airport applications that allow you to skip traces and get expedited safety while you fly.
Additionally: The perfect bank cards for good credit score: Reap the rewards
Mainly, everybody loves skipping traces on the airport, so we should not be shocked that the rich gobble up this perk in droves.
Along with the flamboyant journey perks everybody loves, bank cards provide some significant shopper protections you possibly can profit from when you play your playing cards proper. Some rewards playing cards provide assured returns — as in, your card will refund your cash and allow you to return an merchandise even when a retailer will not. 
Prolonged warranties are one other large perk everybody else loves. Prolonged guarantee protection by Chase, for instance, extends the US producer’s guarantee on certified objects for an extra yr, supplied the preliminary guarantee was three years or much less. The protection is sweet for $10,000 per declare and as much as $50,000 per yr — which is hardly pocket change, even for the very rich.
Past the glamor of airport lounge entry and prolonged warranties, you may discover much more causes the rich, love their bank cards. For starters, an array of high journey bank cards provide cardholders entry to particular occasions that vary from concert events to sold-out sporting occasions.
For instance, Citi Leisure is a program created for Citi cardmembers. Should you qualify, you may get entry to presale live performance tickets, particular promotions, and VIP occasions.
Analysis exhibits that utilizing bank cards may be safer, particularly on the subject of on-line purchases. That is as a result of the vast majority of bank cards provide zero fraud legal responsibility, and federal legislation limits your legal responsibility to simply $50 for unauthorized expenses made along with your bank card anyway.
However, when you use a debit card, you might be on the hook for as much as $500 in fraudulent purchases when you do not report the fraud inside two enterprise days. And when you do not discover the fraud for 60 calendar days after your assertion is shipped to you, you might be accountable for all fraudulent purchases plus any cash the thief is ready to extract out of your checking account.
Lots of the high journey bank cards provide concierge companies that may enable you do, nicely, absolutely anything.
Say you’ve got the Platinum Card from American Categorical. You may both name the 1-800 quantity or electronic mail their journey concierge to get helps with all kinds of issues. For instance, you might:
These are just some examples of the way a concierge service may help you; the sky is the restrict. And within the absence of your personal private butler or assistant, a useful bank card concierge service would be the subsequent neatest thing.
[This article was first published on The Simple Dollar in 2020. It was updated in March 2022.]


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