Do billionaires/multimillionaires/celebs use credit cards?

[Anonymous]

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@Anonymous wrote:

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@Existentialist wrote:

I'll just offer the short answer (cuz I just deleted my previously extended thread as it was too wordy even for me) lol.

What you're actually talking about is NOT wealth. Wealth to the extent it can be quantified is generational (which is where the 'silver spoon' effect comes n2 play). Ppl are born n2 wealth. What you're describing is those who are RICH. And rich(ness) enjoys a different consideration. Most truly rich celebs (and by extention wealthy folks as well) dont handle their finances personally. Lower tier rich folks may carry cards with them yes BUT upper tier folks mostly buy on (blind) credit meaning they walk in the door make a purchase without paying a cent (based on social status alone) with the expectation that they will pony up within a reasonable period of time.

And since credit for them is utilized totally different from the rest of us their cards are generally attached directly to specific (spending) accounts so there would be little need for them to even apply for credit in the conventional sense. And even then there are spending limits set in place should something happen to said cards. Like I said many lower tier rich folks carry cc's. But the truly rich rarely come out of pocket unless we're talking meager day to day expenses (and thats generally between cash on hand and the above mentioned type cards). Of course when I say meager thats meager by rich folks standards.

Now the real ? is... how do I know this?

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Limo driver?

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LOLOLOL! You could just think of it logically... Why would a billionairs credit matter? It he wants credit he gets it, no need for an "application proccess". And yeah I can't imagine any very wealthy person handling their own day to day finances, maybe certain investments and things, but not the meneal everyday stuff. They got a guy to do that for them.

[NRB525]

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@Existentialist wrote:

I'll just offer the short answer (cuz I just deleted my previously extended thread as it was too wordy even for me) lol.

What you're actually talking about is NOT wealth. Wealth to the extent it can be quantified is generational (which is where the 'silver spoon' effect comes n2 play). Ppl are born n2 wealth. What you're describing is those who are RICH. And rich(ness) enjoys a different consideration. Most truly rich celebs (and by extention wealthy folks as well) dont handle their finances personally. Lower tier rich folks may carry cards with them yes BUT upper tier folks mostly buy on (blind) credit meaning they walk in the door make a purchase without paying a cent (based on social status alone) with the expectation that they will pony up within a reasonable period of time.

And since credit for them is utilized totally different from the rest of us their cards are generally attached directly to specific (spending) accounts so there would be little need for them to even apply for credit in the conventional sense. And even then there are spending limits set in place should something happen to said cards. Like I said many lower tier rich folks carry cc's. But the truly rich rarely come out of pocket unless we're talking meager day to day expenses (and thats generally between cash on hand and the above mentioned type cards). Of course when I say meager thats meager by rich folks standards.

Now the real ? is... how do I know this?

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This is the real answer. The personal assistants (multiple) are not only writing the checks after the fact for these things, but making the arrangements and scheduling the time, where the person is going to be going. These folks don't fly coach either, they use something like NetJets if they don't have their own plane. They have credit in the old fashioned sense, in the corporate sense of paying later or running a tab.

They should carry a card for some situations, but the PA is often not far away anyhow.

[Anonymous]

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@camera_jen wrote:

Sure they do.  Wealthy people don't usually pay cash for everything they have.  Even if someone wanted to drop $40M on a house, they would still finance it so credit is necessary.  Most people don't have that much liquid cash, it is invested in various things, so plenty of things will still be financed and/or charged.  Also, they need the same conveniences as everyone else and it's nice for their staff to have purchasing cards.  

I don't think they are that much different than everyone else... still mortgage houses, finance cars, charge stuff and pay when they want to, travel, eat out, etc, it's just at a higher dollar amount than what I have to work with.

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I'd have to disagree with the above. A large percentage of houses/cars that expensive are not financed. They are cash purchases. But other things like travel, everyday stuff, etc. is very likely not cash as it just doesn't make much sense.

[Anonymous]

Yes wealthy people do use credit cards as they are the easiest to manage. Most of your A-List celebs as you stated, have financial planners that take care of their bills, which include credit cards. Seeing as they do not all receive a normal weekly or bi-weekly paycheck, like most people, the easiest payment type for them to use while they are out are credit cards since their is the added security from fraud on these cards.

[Anonymous]

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@NRB525 wrote:

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@Existentialist wrote:

I'll just offer the short answer (cuz I just deleted my previously extended thread as it was too wordy even for me) lol.

What you're actually talking about is NOT wealth. Wealth to the extent it can be quantified is generational (which is where the 'silver spoon' effect comes n2 play). Ppl are born n2 wealth. What you're describing is those who are RICH. And rich(ness) enjoys a different consideration. Most truly rich celebs (and by extention wealthy folks as well) dont handle their finances personally. Lower tier rich folks may carry cards with them yes BUT upper tier folks mostly buy on (blind) credit meaning they walk in the door make a purchase without paying a cent (based on social status alone) with the expectation that they will pony up within a reasonable period of time.

And since credit for them is utilized totally different from the rest of us their cards are generally attached directly to specific (spending) accounts so there would be little need for them to even apply for credit in the conventional sense. And even then there are spending limits set in place should something happen to said cards. Like I said many lower tier rich folks carry cc's. But the truly rich rarely come out of pocket unless we're talking meager day to day expenses (and thats generally between cash on hand and the above mentioned type cards). Of course when I say meager thats meager by rich folks standards.

Now the real ? is... how do I know this?

---

This is the real answer. The personal assistants (multiple) are not only writing the checks after the fact for these things, but making the arrangements and scheduling the time, where the person is going to be going. These folks don't fly coach either, they use something like NetJets if they don't have their own plane. They have credit in the old fashioned sense, in the corporate sense of paying later or running a tab.

They should carry a card for some situations, but the PA is often not far away anyhow.

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Right this is very true. They use credit as it really means. Get now pay later, but without the lender in the middle for big stuff. 

[Anonymous]

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@Existentialist wrote:

I'll just offer the short answer (cuz I just deleted my previously extended thread as it was too wordy even for me) lol.

What you're actually talking about is NOT wealth. Wealth to the extent it can be quantified is generational (which is where the 'silver spoon' effect comes n2 play). Ppl are born n2 wealth. What you're describing is those who are RICH. And rich(ness) enjoys a different consideration. Most truly rich celebs (and by extention wealthy folks as well) dont handle their finances personally. Lower tier rich folks may carry cards with them yes BUT upper tier folks mostly buy on (blind) credit meaning they walk in the door make a purchase without paying a cent (based on social status alone) with the expectation that they will pony up within a reasonable period of time.

And since credit for them is utilized totally different from the rest of us their cards are generally attached directly to specific (spending) accounts so there would be little need for them to even apply for credit in the conventional sense. And even then there are spending limits set in place should something happen to said cards. Like I said many lower tier rich folks carry cc's. But the truly rich rarely come out of pocket unless we're talking meager day to day expenses (and thats generally between cash on hand and the above mentioned type cards). Of course when I say meager thats meager by rich folks standards.

Now the real ? is... how do I know this?

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Yeah, this is more to what I was getting at. Not sure I agree with you on your demarcating "riches" and "generational wealth," but that's not important here. The issues I was wondering about are where those lines start to really be drawn between the tiered rich and the truly, truly rich (whether or not they are legacies of industrialist fortunes or they made hundreds of millions throwing a ball around.) I wasn't asking the George Soros question flippantly -- does he have a credit score? Does Warren Buffet? (Maybe he's scored by some Standard & Poors metric as he's so closely tied to his corporate identity.) 

How do you know this?

[Anonymous]

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@Anonymous wrote:

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@Existentialist wrote:

I'll just offer the short answer (cuz I just deleted my previously extended thread as it was too wordy even for me) lol.

What you're actually talking about is NOT wealth. Wealth to the extent it can be quantified is generational (which is where the 'silver spoon' effect comes n2 play). Ppl are born n2 wealth. What you're describing is those who are RICH. And rich(ness) enjoys a different consideration. Most truly rich celebs (and by extention wealthy folks as well) dont handle their finances personally. Lower tier rich folks may carry cards with them yes BUT upper tier folks mostly buy on (blind) credit meaning they walk in the door make a purchase without paying a cent (based on social status alone) with the expectation that they will pony up within a reasonable period of time.

And since credit for them is utilized totally different from the rest of us their cards are generally attached directly to specific (spending) accounts so there would be little need for them to even apply for credit in the conventional sense. And even then there are spending limits set in place should something happen to said cards. Like I said many lower tier rich folks carry cc's. But the truly rich rarely come out of pocket unless we're talking meager day to day expenses (and thats generally between cash on hand and the above mentioned type cards). Of course when I say meager thats meager by rich folks standards.

Now the real ? is... how do I know this?

---

Yeah, this is more to what I was getting at. Not sure I agree with you on your demarcating "riches" and "generational wealth," but that's not important here. The issues I was wondering about are where those lines start to really be drawn between the tiered rich and the truly, truly rich (whether or not they are legacies of industrialist fortunes or they made hundreds of millions throwing a ball around.) I wasn't asking the George Soros question flippantly -- does he have a credit score? Does Warren Buffet? (Maybe he's scored by some Standard & Poors metric as he's so closely tied to his corporate identity.) 

How do you know this?

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Wealthy people (multi-millions, not hundreds of millions+) use credit just as we do only more simply in number of cards and don't rewards chase like we do for the most part. Truly rich (hundreds of millions+) use credit in the sense posted above. They just get what they want and let other people worry about how it's paid because to them that's not important.

Someone like Warren Buffet has no need for a scored system. His financial life is largely public and a corporate figure.

[Anonymous]

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@Anonymous wrote:

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@camera_jen wrote:

Sure they do.  Wealthy people don't usually pay cash for everything they have.  Even if someone wanted to drop $40M on a house, they would still finance it so credit is necessary.  Most people don't have that much liquid cash, it is invested in various things, so plenty of things will still be financed and/or charged.  Also, they need the same conveniences as everyone else and it's nice for their staff to have purchasing cards.  

I don't think they are that much different than everyone else... still mortgage houses, finance cars, charge stuff and pay when they want to, travel, eat out, etc, it's just at a higher dollar amount than what I have to work with.

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I'd have to disagree with the above. A large percentage of houses/cars that expensive are not financed. They are cash purchases. But other things like travel, everyday stuff, etc. is very likely not cash as it just doesn't make much sense.

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If i had enough money to drop $40 million on house, it probably means I have multiple $40 million houses, right? If there's that much wealth, why am I bothering to finance it? So I can check off the "Installment Loans" category on my FICO? 

I think applurker is onto something here -- there's no need for credit/financing if you want to buy a $40 million home. But you want to grab a burger while you're out somewhere, it's easier to just pay with whatever card you (or your PA) is carrying. Weird dichotomy.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@camera_jen wrote:

Sure they do.  Wealthy people don't usually pay cash for everything they have.  Even if someone wanted to drop $40M on a house, they would still finance it so credit is necessary.  Most people don't have that much liquid cash, it is invested in various things, so plenty of things will still be financed and/or charged.  Also, they need the same conveniences as everyone else and it's nice for their staff to have purchasing cards.  

I don't think they are that much different than everyone else... still mortgage houses, finance cars, charge stuff and pay when they want to, travel, eat out, etc, it's just at a higher dollar amount than what I have to work with.

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I'd have to disagree with the above. A large percentage of houses/cars that expensive are not financed. They are cash purchases. But other things like travel, everyday stuff, etc. is very likely not cash as it just doesn't make much sense.

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If i had enough money to drop $40 million on house, it probably means I have multiple $40 million houses, right? If there's that much wealth, why am I bothering to finance it? So I can check off the "Installment Loans" category on my FICO? 

I think applurker is onto something here -- there's no need for credit/financing if you want to buy a $40 million home. But you want to grab a burger while you're out somewhere, it's easier to just pay with whatever card you (or your PA) is carrying. Weird dichotomy.

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It's completely true. If you look up large home purchases ($40 million+ kind of homes) more of them are cash purchases than financed. Yes some are financed, but much more of them are cash purchase. Also if you are going to buy a Bugatti you have to pay 10% of the car upfront in cash just for them to start the build AND prove you have the rest of the funds in cash for when it's completed. I'd be willing to bet there's not a single financed Bugatti lol.

[Anonymous]

I dunno, but if I were famous i'd pull out the good ol' "Do you know who I am?" for that burger.