'Upper Class' People Are More Likely To Apply For This Type Of Credit Card

Wealthy people are pretty good about using credit cards. They avoid carrying balances, which can often lead to high-interest debt, and have even leveraged the system through credit card churning to maximize their rewards. But according to The Motley Fool, individuals with a net worth of at least $1 million are now turning to credit cards with crypto rewards. According to its study, 23.07% of high-net-worth credit card holders are somewhat likely to apply for one, and 32.80% are very likely.

Crypto credit cards function like standard cards, enabling individuals to make everyday purchases. However, instead of rewarding customers with travel miles or cash back, they earn cryptocurrency such as Bitcoin or Ethereum. These cards are typically offered by exchanges where individuals buy and sell digital assets. But according to RedotPay, crypto cards may be harder to obtain, with some firms having limited availability or strict approval requirements, such as having to stake your own assets. However, the right card can still have its benefits.

For consumers wary of speculative investing, crypto credit cards may not have greater advantages than a standard rewards card. However, a large percentage of wealthier people already own cryptocurrency, according to The Motley Fool. By having a card that rewards them with crypto, they are able to invest further into the market without necessarily using their own money. Even if a crypto card earns them a small amount of a particular asset, over time it can grow in value and increase their net worth. And at the end of the day, responsible use of a crypto credit card, just like any card, can also benefit their credit score.

While these types of cards are not exclusive to high-net-worth individuals, they can be hard to get. However, a crypto debit card is a similar product with comparable rewards that can be easier to obtain for people already investing in crypto. Instead of using a bank's money to make purchases, an individual uses their crypto investments to buy goods. In return for using the card, the issuer rewards them with cash back in the form of a cryptocurrency. But it has downsides, as going with this route would require individuals to keep their money invested in crypto, which can be one of the worst places to keep investments.