Finance
4 ways Americans use credit cards to purchase and plan for the future
‘Kudlow’ panelists Kevin Brady, Art Laffer and Sandra Smith discuss how ‘Bidenomics’ is falling flat with voters.
Credit cards are a ubiquitous part of American finances as individuals seek ways to gain financially for the present and future.
Regardless of age or income, credit card use is customary in the United States. In 2023, 82% of US adults had a credit card, according to the Board of Governors of the Federal Reserve System.
Some people use credit cards and pay off the balance each month while others build up substantial credit card debt and carry a balance with a significant amount in interest.
BEST REWARDS CREDIT CARDS AND HOW POINTS CAN BE REDEEMED FOR TRAVEL, CASH BACK OR GIFT CARDS
Although there is substantial debate regarding whether credit card use is beneficial or detrimental to one’s financial well-being, the 82% who chose to open a credit card for one reason or another believed it would have a positive impact on their financial state.
Many credit card companies offer cash back, reward points and other incentives for opening a line of credit with them as the lender. (Photo Illustration by Justin Sullivan / Getty Images)
Whether you are considering opening your first credit card or are looking for ways to make use of your well-swiped plastic, knowing why and how they are used by those who believe credit cards are profitable for financial success can help.
Here are some of the ways that eight in 10 adults who own credit cards use them:
Everyday purchases, such as gas and food
Many credit card companies provide incentives like earning cash back or accumulating bonus points and travel rewards on purchases. With each use of the card, you’re rewarded according to the card’s terms. These purchases typically cover everyday expenses, such as groceries and fuel. The more you spend, the more rewards you can rack up.
However, only spending within one’s means has proven harder than ever with credit card use.
CREDIT CARD DEBT POISED TO SMASH ANOTHER RECORD HIGH
Many credit card holders use them to aid their credit score and to build credit history. ( / iStock)
Americans’ credit card debt has soared to a staggering $1.13 trillion, as reported by the Center for Microeconomic Data’s Quarterly Report on Household Debt and Credit. On a personal scale, Experian notes the average debt per borrower stands at $6,501.
Paying for a vacation
Is financing a ski trip or tropical getaway with a credit card a good option, or should you fund it from savings?
Some credit card companies offer incentives for specifically using their card to book travel. Depending on which credit card you have, you can accumulate a certain amount of travel points by booking with the card.
Choosing a credit card with an airline can increase the rate at which you earn points. If the airline is a member of an alliance, such as Star Alliance, SkyTeam or Oneworld, those points can be redeemed with an airline included in the alliance, according to nerdwallet.com.
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Many credit card lenders provide various forms of travel insurance for trip cancellation, baggage loss and rental cars as a stated benefit. (Sam Hodgson/Bloomberg via / Getty Images)
The rate at which points are collected, however, is relatively low, and it can take a while to earn enough points for the free travel credits.
“For most cards, every dollar you spend equals one travel mile. But when you’re trying to redeem them, each mile is worth about a penny, depending on the kind of card you have,” says the Ramsey Solutions website.
The allure of a free flight may lead to overspending to earn the needed points. Additionally, paying for a trip that you wouldn’t be able to fund with your current savings can lead to financial havoc.
HOW TO EARN CREDIT CARD POINTS, MILES FASTER
Online shoppers often use credit cards instead of debit cards to earn reward points, miles and cashback on their purchases. But studies show that consumers tend to spend more with purchases when using a credit card. (iStock / iStock)
Recurring bills
One strategy that consumers take to earn rewards is to automate recurring payments with the credit card. Subscriptions, memberships and payment plans can all be set up with monthly withdrawal from the credit card.
The danger is the allure of introductory offers and trial periods. The consumer will be at a disadvantage while the company profits if they complete the initial sign-up process, forget about it and don’t track expenses on the credit card.
Business expenses
A primary reason that some individuals open a credit card is for business expenses. This strategy helps them separate personal and business spending for easier tax preparation.
Business owners frequently receive rewards and offers for small business credit cards, enticing them to pursue their dreams with the promise of profit.
Many small business owners use their credit cards to support their businesses and pay off debt when they begin to profit. (SouthWorks / iStock)
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Business owners should read the fine print carefully before jumping in. In many cases, they are expected to pay off the credit card balance within the introductory period to avoid steep fines and interest rates. Additionally, there is often a required minimum amount that must be spent on the card within this period to qualify for the card’s perks.
Small businesses are also enticed with credit cards because of the ability to earn rewards specific to business needs. Some rewards start to accumulate right away, such as cashback offers, and others require a minimum amount spent to qualify.
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A consideration to make before maxing out your business’ credit card is that sales and consumer trends tend to ebb and flow. Using a credit card to pay business expenses and benefit from the perks is a great plan as long as everything is going perfectly, Dave Ramsey explains on his talk show. The talk show host describes this risk as “playing with snakes.”
Finance
Low-income Chinese girl aces gaokao, inspires live-streamers offering help
A girl from a disadvantaged rural family in central China topped this year’s gaokao, attracting numerous live-streamers eager to finance her education, which she declined.
The home of 18-year-old secondary school graduate Han Yaping in a Henan province village was recently bustling with live-streamers.
This attention came after Han achieved an impressive score of 699 out of 750 in the gaokao, China’s national college entrance exam.
She has received offers from China’s two leading universities, Tsinghua University and Peking University.
Han’s accomplishment is particularly remarkable given her family’s impoverished circumstances.
Her mother suffers from ankylosing spondylitis, an inflammatory arthritis affecting the spine, preventing her from working. Her father, who earns a living through farming and odd jobs, serves as the family’s sole provider. Han also has a younger sister.
Finance
UK financial regulator publishes landmark AI review
The UK’s Financial Conduct Authority (FCA) published a landmark review on Monday that proposes recommendations to regulate the impact of artificial intelligence (AI) on the financial decisions made by consumers.
The review, titled the Mills Review, anticipates that both consumers and firms will start delegating “more financial decision-making to AI systems,” including for agreements, initiating transactions, and executing decisions “within agreed parameters.” One of the key findings of the review outlined that while AI can help bridge advice gaps and “support growth,” there remain risks “associated with fraud, cyber security, and consumer harm.” Conducting the review, Sheldon Mills highlighted that “AI can also amplify risks: bias, discrimination, exclusion, opaque decision-making (particularly when multiple AI models interact), misleading or hallucinatory advice and erosion of consumer trust.”
The review stated that presently, one in five adults in the UK are “already open to AI making decisions for them,” particularly when decisions feel “complex or high stakes.” It found that roughly 26 percent of the population “trust general-purpose tools such as ChatGPT, Claude or Gemini for financial advice” with little awareness that such platforms provide no “formal routes to recourse” or protections.
Overall, the Mills Review identified four areas that it anticipates will be impacted by AI in the financial sector: “the transformation of firms,” “new consumer journeys,” “a reshaped competition landscape,” and “amplified financial crime and cyber risk.” The FCA projected the shift in how consumers and firms consult AI to take place by 2030.
The Mills Review put forth seven “priority” recommendations to be considered by the FCA Board. It recommended that any transitions to autonomous AI models be monitored and that regulatory frameworks and perimeters be adapted and secured. The review called for the strengthening of “system-wide coordination and oversight,” the scaling up of the FCA’s AI Lab to enable it to support AI models and innovation for agentic finance, and an “AI-enabled agentic supervisory model” to be built and adopted. Finally, it recommended that a trusted “public-interest AI-enabled financial capability service” be developed.
The FCA announced, in the press release, that it will launch an AI “good and poor practice publication” in late 2026.
Finance
Fayette County Public Schools Board of Education approves audit contract, new finance director position
LEXINGTON, Ky. (WKYT) – The Fayette County Public Schools Board of Education approved a one-year audit contract capped at $131,750 plus $225 per hour during a virtual meeting Monday, along with a new finance director job description.
The contract is with Mauldin & Jenkins Certified Public Accountants, an Atlanta-based firm, and covers the 2025-26 fiscal year and the restatement of the 2024-25 fiscal year and ancillary services through FY 2029-2030. The work is set to be completed by Nov. 15.
The board approved the contract in a 5-0 vote.
Audit contract details
Interim Chief Financial Officer Kyna Koch said the cost is already accounted for in the district’s budget.
“And is actually less than we expected given our current situation — we were thrilled with the bid,” Koch said.
Koch said she believes this is Mauldin & Jenkins’ first school district audit in Kentucky, but that the firm works with school districts of more than 100,000 students throughout the Southeast.
“Quite frankly when I spoke to the folks at KDE they were thrilled because we’re running kind of short of auditors who want to do school district audits — so all around I think this was a win-win for everyone,” Koch said.
New finance director position
The board also approved a new job description for the position of Director of Finance. Acting Superintendent Dr. Bill Bradford said the title will replace two associate director positions.
“Which will not only save the school district money but it’s also going to streamline our work and align internal controls to make room for a more efficient unit,” Bradford said.
Koch said the position will be posted as soon as possible following the board’s approval.
Closed session
The board went into closed session for more than an hour to discuss pending investigations that could lead to employee discipline. When the board returned, it took no action and adjourned the meeting.
Copyright 2026 WKYT. All rights reserved.
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