Billionaire Mark Cuban Is COMPLETELY Wrong When It Comes to Credit Cards

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Billionaire Mark Cuban Is COMPLETELY Wrong When It Comes to Credit Cards

KeithBillionaire Mark Cuban Is COMPLETELY Wrong When It Comes to Credit CardsMillion Mile Secrets Team

We devote thousands of hours of research to help you get Big Travel with Small Money. You support us by signing-up for credit cards through partner links which earn us a commission. Here’s our full Advertising Policy.

I’m a big fan of Mark Cuban, owner of the Dallas Mavericks and star on ABC’s Shark Tank.  But I think his view on credit cards is extreme and misleading.  A recent CNBC article includes this quote from Cuban: “Cut up your credit cards. If you use a credit card, you don’t want to be rich.”

In my mind, Cuban’s view is very flawed.  He assumes everyone with a credit card carries a balance and pays interest.  But savvy miles & points enthusiasts who subscribe to our daily newsletter know that using rewards credit cards wisely can actually help you save money and get free travel!  And responsible cardholders who pay their balances in full each month can still achieve financial success.

For example, I have 15 rewards credit cards and have NEVER paid a penny in interest.  Plus, I’ve earned tons of miles & points on everyday purchases and later used the rewards to book lots of getaways, including an around-the-world honeymoon and First Class family trip to New Zealand!  Not having to pay for these trips has allowed me to stay on track in terms of my personal financial plan.

Credit Cards Can Actually Be a Tool to Helping You Achieve Your Personal Financial and Travel Goals!

Keep in mind, I realize credit cards are NOT for everyone.  For example, if you don’t pay bills on time and can’t track your card balances, it’s not worth getting into this hobby.  Because late fees and interest charges will negate the value of any rewards you earn.  For folks who plan to carry balances, Mark Cuban’s credit card advice actually does apply.

However, if you’re willing to spend a little time understanding the benefits of rewards credit cards, the return on investment can be HUGE!  Instead of paying cash for your vacations, you can apply for top travel credit cards and use rewards to book steeply discounted or even free getaways!

Take a look at a few of our Million Mile Secrets reader success stories to see how folks, even beginners, are getting Big Travel with Small Money thanks to miles & points!

If it sounds too good to be true, you’re not alone.  I was hesitant before I applied for my first travel credit card.  But when I took my first First Class flight soon after earning a lucrative credit card sign-up bonus, I realized being a responsible cardholder can really pay off!

What do you think of Mark Cuban’s advice?  Let me know in the comments below!

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Free miles aside, when someone defrauds your Debit card, they’re stealing YOUR money, and quite possibly impacting your ability to pay rent, car or other bills; however, when someone defrauds your Credit card, they’re stealing credit. Having a major card go to bat defending erroneous charges has a far greater margin for successfully contesting said charges than YOU do, not to mention the ability every major card has to simply wave the charges.

The only downside even without carrying a balance is that people who pay with credit cards have been shown to spend more than those who pay with debit or cash.

It might not be much more, but it could easily erase the 2% cash back bonus. That being said, I have cards but view them more as a tool of convenience than savings

I have two cards at the moment. One of them gives me back 2% cash back on every purchase I make. Not too bad. I was wondering if I should get another one or is there a recommended number of cards to own. What is the trick? How you divide transactions with so many cards?

Author

Hi Carl — it depends on your travel and financial goals. 2% cash back cards are great and easy, but you can typically earn larger sign-up bonuses and get access to better bonus spending categories with popular travel rewards cards. For example, the Chase Sapphire Preferred is the top card we recommend to beginners in the hobby. You can read why here:

https://millionmilesecrets.com/reviews/best-first-credit-card/

I thoroughly agree with you and not Mark Cuban. I am in my 70s. I retired in my 50s. I have a net worth well into 7 figures. I currently have 6 or 7 credit cards. Other than the month after I bought my first house and needed to carry over a small balance on a credit card that I used to buy a refrigerator, I have never paid any interest on any of my credit cards. All it takes is awareness and discipline. If you can’t muster up either and still take Mark Cuban’s advice, it’s still no guarantee.

Author

Amazing! Thank you so much for commenting!

Regarding credit cards, there are 2 classes of responsible people: those who can’t bear touching them and those who exploit them. I mean, have you heard of those people talking about the “pain of buying”? Like, if you don’t have the cash and you have to run to ATM, it will be so annoying that you won’t buy. But of course, I prefer to look at my balance in the morning and freak out for the rest of the day (and not wanting to buy in the first place). Alternatively, you can have budgets. But no, PAIN OF BUYING WILL SAVE YOU!!!! (sorry for screaming)

Schools (as in, middle schools) really need to teach people how to be responsible with money. And high schools should teach people the value of finance and credit (e.g. why do those cash-flush corporations keep issuing bonds?).

Author

110% agree with you about the need for more education on finance and credit. Really appreciate you sharing your thoughts!