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Do Rich People Actually Use Expensive Credit Cards?


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I'm slow on the take up here ...

 

I just figure that given how lucrative CC processing is, that they reserve particularly rich benefits for those who pump through $100k (or $250k, or $500k) through a given card each year.  Something much tastier than 2% cb, and packaged not as cashback but as perqs and access.  But since $25k is pretty much my annual cap for a single card, I won't be privy to the details.

 

 

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I imagine most of them use Amex Platinums or Gold Charge cards.


I would use my everyday PenFed 2% card and rarely my Citi 2% card. I don't like how Citi and others make you accumulate $25 before you can redeem your rewards. PenFed posts the rewards instantly as soon as the corresponding charge clears and then can redeem as little as $0.01.

I'm also fond of AmEx Gold or an AmEx Biz Card. While AmEx rewards are not generally stellar, I always get some great incentives because of elevated spend. I can usually get free AF on the Gold. I often get offers for double points if I spend over a certain amount. Even redeeming the MRP for cash, it comes out better than 2%.

Ollo has a 2.5% card, but that card is crap. Even with what Ollo claims is a high limit, buying a Happy Meal puts you at 50% UTIL.

Our resident porch pirate in a pink-flowered jacket likes to tell us about how great the Skank of America Preferred Rewards gives him great cash back. I suppose that could be true assuming someone failed third-grade math. To get those rewards you need to be paying the Merrill Lynch fees, which are very high.


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What people miss is that the card fee is only expensive if you failed to be able to extract AT LEAST the fee amount from the card in the way of rewards and benefits.  While I would hope nobody is content with just breaking even, a break-even point still means the card didn't really cost the holder anything across the year.  Prudent users of credit understand this while the lamestream media wants to just stand at the window and peer in without explaining to their sheeple the why's and wherefore's of the card game...

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 One reason expensive credit cards don't always come with high rewards is that they offer a wide array of other perks. 

 

But, as with any other credit card, if you're not getting your money's worth out of those perks, why pay for them? 

 

Even if the most expensive credit cards also came with the best rewards or high-value perks, there's still a lot of time and effort that goes into making use of those benefits. 

 

A basic cash back rewards card and autopay can wind up being far more worthwhile than any purchase reward or cardholder perk if it saves you valuable time.

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Amex was disappointed when I downgraded my Platinum to Gold back in June. Monday they were disappointed again, when I closed my Green. 
 

Both times they were insistent on why I closed. Told them my credit card spending does not involve gym memberships, spend offers for overpriced boutique stores, and Walmart+ memberships. Travel category on the Green needs to be broader and include gas. 

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