No rich person would ever touch a credit card? Wrong. Here’s why most American millionaires use plastic for all their purchases even if they can use cash — and why you should too

Of that cohort, only 4% of high-net-worth individuals don’t own a credit card, and a mere 15% have just one. However, nearly half (47%) own two or three, while 34% have four or more.

While it may seem odd for people with so much money on hand to use credit cards, the reality is that there are plenty of good reasons millionaires keep their cards handy, from rewards to free travel insurance.

The good news is that many of the perks rich people get from their cards are available to everyone.

Wealthy people love credit card perks

When deciding which credit cards you should have — and how many — it’s important to consider where you do the majority of your spending.

Different cards offer cash back, rewards, low interest, or no interest. Having a couple of cards is a good way to maximize the perks and avoid high interest costs.

Credit cards are typically quite secure, with strong fraud protections in place to safeguard cardholders. They can also offer purchase protection, return protection, and extended manufacturer warranties. Others may include travel or rental car insurance perks.

Some cards — especially those used by wealthy individuals — may also offer additional luxuries, such as airline lounge access or concierge services.

Credit cards help you earn a good credit score when used responsibly.

This can open the door for more affordable financing on big loans, such as mortgages. It can even give you more opportunities to do business with companies that will see you as trustworthy, thanks to your solid record.

How to use your credit card responsibly

The convenience of credit cards, coupled with high interest rates, can make it incredibly easy to rack up debt.

In fact, both boomers’ and millennials’ average credit card balance is around $6,600, according to Experian’s latest numbers. For Gen X, that balance sits much higher at $9,255.

While cards come with many benefits, there's one healthy habit that can help you keep money in your pocket: paying your balance in full, every month, before you’re charged interest.

Credit cards can become a major headache if you aren't paying them off on time. The average interest rate on cards in the U.S. is 21.76% as of August 2024, according to the latest data from the Federal Reserve Bank of St. Louis.