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.
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!
- Family Travel Miles & Points Success! 7 Round-Trip Award Flights to Texas, Meeting Imagine Dragons, Tesla Rides, and More!
- Reader Success! $29,000+ Vacation to Greece on a First-Time Miles & Points Redemption!
- 10-Year Wedding Anniversary Trip to Vegas, L.A., and Hawaii for Nearly FREE After Just 6 Months of Miles & Points Earning!
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!