“I use credit cards for every single purchase I make,” he told GOBankingRates.
Credit Cards Help You Keep Track of Spending
Cardone said that using credit cards to make all of his purchases helps him to see exactly how and where he is spending his money.
“I use credit cards for every single purchase because I want to track the purchase,” he said. “I want to see the purchase twice — when I made it and when I have to pay it off.”
Using a credit card for business expenses also creates a record that Cardone can refer to in the event of a tax audit.
“I have a business credit card that I use for the IRS,” he said. “My credit card history is going to be there when I get audited in three years or four years. I’m not going to keep a bunch of receipts — I’m going to go back to the ledger. I’m using Amex, Bank of America [and] Mastercard as basically a secretary.”
Savvy Credit Card Use Can Pay Off Via Points
When you use credit cards wisely, you can reap all of the rewards without any of the drawbacks.
“I don’t pay anything for [American Express’, Bank of America’s and Mastercard’s] cards,” Cardone said. “I get all their points. I never pay any interest. I’m their most expensive customer.”
Cardone notes that to benefit from credit card use, you do have to be cautious to not overspend.
“I don’t use that credit card if I can’t pay it off in 30 days,” he said. “It is impossible to pay that balance down.”
Credit Cards Can Protect Your Money From Fraud
Another reason Cardone prefers using credit cards over cash is that using credit cards is more secure.
“If you steal my credit card and charge $10,000 on it, I cannot be held responsible for that,” he said. “It’s against the law for [the credit card company] to collect that $10,000 from me. If you steal $10,000 in cash from me, I can’t get it back. If you steal $10,000 on my credit card, I never have to pay you.”
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