The Smart Use of Credit Cards: How the Wealthy Build Net Worth

Your total is $2,000. Will that be cash or credit?

Uh, credit, please.

Maybe you shouldn't be shopping here if you can't afford it?

Uh, what do you mean?

Well, you're paying with a credit card, so clearly you can't afford this stuff.

Oh, I never use my credit card unless I can immediately pay it off in cash.

Wait, then why don't you just use cash?

Look, here's what rich people do. They pay for as much as possible on their credit cards, and then they just pay down the entire balance before they get charged any interest.

But how do the banks make all that money off of credit cards then?

That's the worst part. The banks make all their money on credit cards from people who can't even afford certain daily items and need to put it on credit just to buy basic necessities.

Well, that seems unfair.

Oh, it is. Not only that, but the rich actually get to continue to increase their credit scores, allowing them to secure better rates on homes, cars, and business loans. Those who can't make the payments see their credit scores decrease and get worse rates.

Wait, so the rich just keep getting richer and the poor...

Yep.

And that's why you follow Social Cap to learn where and how to use credit cards to build net worth responsibly.

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