Platinum Credit Cards
What Is A Platinum Credit Card?
Credit Cards these days have many different names, and there are so many types to choose from, rewards credit cards, low rate credit cards, no annual fee credit cards, then there are your colour categories, such as gold and platinum. So what are platinum credit cards, and what does the colour mean?
The main advantage of a platinum credit card is the high credit limit available, but this also means you have to have a higher annual income to qualify for the card.
Feature-wise, the card is usually the top of the line product from all banks and lenders, and thus is packed full of extras, including travel insurance, personal concierge services, plus a great rewards program with the ability to earn heaps of bonus points per dollar spent, much more than the normal or gold version of the credit card.
Should I get A Platinum credit card?
Platinum cards usually have a high annual fee, which means you have to decide whether the rewards you are getting with the card are actually worth it. If you spend less than $20,000 on your credit card each year, then chances are the card won't give you any value in terms of earning rewards vs. the annual fee you will be paying. It would be better to stick to a lower cost card and simply buy the reward you are after.
The purchase rate on platinum credit cards are also usually higher than average credit cards, therefore you should be sure that you will pay off the balance every month, otherwise you could be stuck with a much higher debt than if you were to apply for a low rate credit card.
Sometimes a platinum card may be your only option, as you need a high credit limit. If this is the case then just be sure you find a platinum card with good value, look out for the purchase rate, the interest free days and the annual fee. Compare some of the platinum credit cards on the market on our comparison page.