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Most "finance professionals" say that credit cards are a bad thing. They have high interest rates. They lead many people to get in serious, unrecoverable debt.
This definitely can be true, but it doesn't have to be. Credit cards can actually be one of the most important financial tools out there. It's true that a lot of people can't handle a credit card, but I believe that credit cards are a skill one can learn. Here's how I have used credit cards to increase my net worth.
1. Never pay the interest. I use my credit card like most use a debit card. I pay the credit card off every week, and I have never paid a dime of interest in my life. I even have it set up where it'll automatically pay itself off every month before interest starts just in case I forget to pay it. I don't buy something if I don't have the money to pay for it in my bank account.
2. I use the cash back from my credit card to invest. My credit card has 2% cash back. I use that 2% to invest into an S&P 500 Index Fund. Now, my 2% is going to compound over the next several decades.
Because I don't pay any interest, I basically get a 2% discount on everything that I buy that I can use to build my financial future.
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