Where do you go from gold? Platinum, of course!
If you're thinking of going platinum, you could be open to a whole array of services, features and credit-related goodies. Just be sure you pay off your balance in full each month.
- Platinum credit cards can come in a variety of forms, from to travel cards to reward cards
- The term 'platinum' has no strict industry definition, so features of platinum cards can vary dramatically
- A smart search with GoCompare prior to a credit card comparison/application can help protect your credit score
The natural progression from the popular gold card, platinum cards offer customers another level of credit freedom and financial exclusivity... in theory, at least.
Truthfully, the world of platinum credit cards can be a confusing place, as the specifics can differ from one card provider to the next. Luckily, GoCompare is here to guide you through the metallic battlefield like John Connor in a future filled with Terminators.
What is a platinum credit card?
As a general rule, platinum credit cards should be the next step up from a gold card. If gold credit cards are the Honeymoon Suite of the credit world, platinum credit cards are the Presidential Suite – providing all the comfort with a few extra perks and little more room to manoeuvre.
While platinum cards are usually marketed as a premium option with elite benefits, one provider's interpretation of the term 'platinum' can vary wildly from another. This lack of clarity can make the platinum shop window a very diverse display indeed, ranging from a high platinum credit card limit to extensive rewards bonuses.
That being said, the 'platinum' term should be reserved for the foremost cards available.
As such, some of these cards are often only available to those with a proven track record in making their repayments in full and on time. This is precisely how to approach any credit card, but those with high APRs and short grace periods in particular.
Who is eligible for a platinum card?
While there are varying minimum requirements for eligibility (such as level of income, etc), platinum cards are not the members-only Ivy Club of credit you may think they are.
With no firm industry definition, platinum cards can be found in a variety of ranges and are often accessible to a surprisingly diverse market - despite the allusion that platinum status is only available to an exclusive group of people.
As a result of this broad spectrum of customers, platinum credit cards can be found in many forms. These commonly include:
Low APR credit cards
Credit cards with low interest and associated charges, which could prove useful for those looking to manage debt over an extended period of time. You will still need to make your minimum monthly repayments though.
Credit-building credit cards
Credit-building cards are often available to those with a poor credit history or little-to-no credit score, typically equipped with a low credit limit and high level of interest.
Balance transfer credit cards
Balance transfer cards are a consideration for those paying interest elsewhere, and looking to pay down their debts by moving their balance to a card with a lengthy interest-free period. These cards still require a minimum payment on the monthly due date, and it's important to clear the balance in full before any introductory 0% interest period comes to an end.
Travel credit cards
For those that spend a lot of time (and money) abroad, a travel credit card can offer such perks as waived transaction and withdrawal fees when used overseas, it is important to read the terms and conditions before applying though.
Cashback/rewards credit cards
Cards that offer incentives - such as money back and other rewards - for frequent card use, including perks like air miles, gift cards etc. These typically have high APRs associated with them. So, again, we can't stress enough the importance of paying off the balance in full when it's due.
Top tips for platinum credit cards
Platinum credit cards may seem like a desirable addition to any pocket. However, the platinum label may not be all it's cracked up to be.
Simply opting for a platinum card on the presumption that it's the most exclusive option available is not only ill-advised, it can be outright reckless at times.
As is the case with most credit cards, what's ideal for one person may be totally unsuitable to someone else. In fact, another card entirely may be just as fitting - if not more so - regardless of its metallic value.
Don't get blinded by the shiny allure of the sparkly platinum – it could turn out to be fool's gold in disguise.
If you've done your homework and are dead set on going platinum, it's well worth conducting a GoCompare smart search before you go any further. This can help determine the likelihood of being accepted for any cards you may be eligible for. And, better still, this foreknowledge can help protect your credit rating at the same time.