If you’re looking for prestige, plenty of perks and a high credit limit, a platinum credit card might check off all your boxes. That said, prestige comes at a price: platinum credit cards typically have high annual fees and strict eligibility requirements – including meeting a high minimum income requirement.
What is a platinum credit card?
A platinum credit card is regarded as a step up from regular and gold credit cards. With a platinum card, you can expect to have a higher credit limit when compared to basic cards, and you can also look forward to a variety of extra benefits.
While it varies between cards, you can usually expect perks like complimentary insurance coverage, rewards programs, personal concierge services, early access to tickets for events and access to airport lounges.
What are the benefits of using a platinum credit card?
While it varies between lenders, you may be able to look forward to the following types of benefits:
Rewards. Most platinum credit cards come linked to rewards programs – but not all rewards programs are the same. While some cards link to travel rewards programs, others will link to programs that offer limited reward options. Platinum cards, when compared to standard rewards cards, tend to offer better points to dollar earn rates, so you can earn rewards faster.
Complimentary insurance coverage. When you use your platinum credit card to make purchases, you can make use of complimentary purchase protection and extended warranty insurance. Complimentary international travel insurance, medical coverage, lost and stolen baggage and transit accident insurance may be offered when you use your card to pay for travel.
Personal concierge services. While not offered with every platinum card, this type of service offers round-the-clock global assistance in matters relating to dining, travel, entertainment and business.
Platinum perks. Depending on the card you choose, you can get exclusive invitations to a host of entertainment and sporting events and receive early access to ticket sales. You can also expect to make use of an array of discounts and special promotions spread across experiences like travel, shopping and dining.
When comparing platinum credit cards, pay attention to the following features:
Annual fee. Just about every platinum credit card charges an ongoing annual fee, with some cards offering annual fee waivers for the first year. Typically, the annual fee of a platinum credit card will vary between $99 to around $350 – but it can be higher.
Rewards program. Pay attention to how many points you stand to earn per dollar spent. Find out what you can redeem your points for, as some rewards programs allow you to redeem your points for flights, flight upgrades and travel and merchandise vouchers, while some may limit you to merchandise only. Some providers even allow you to use your points as cash back.
Balance transfer offers. Some platinum credit cards may come with balance transfer offers. These offers give you the ability to transfer your debt onto your new credit card and pay 0% or low interest on the balance for a certain time period.
Compare platinum credit cards
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Who are platinum credit cards best suited to?
If you want to get a platinum card simply because you feel it’ll add to your social standing, think again. When choosing a credit card, you should ideally take into account your spending habits along with your ability to make repayments.
You can consider getting a platinum credit card if you:
Plan to pay your account’s closing balance in full each month. Interest on platinum credit cards tends to be on the higher side and carrying a balance from month to month may throw you into a spiral of on-going debt.
If you will use the rewards points. Spending on a typical platinum card results in the accumulation of rewards points, If you plan on using the points towards flights, merchandise or cash back, a platinum card might work well for you.
You want a higher credit limit. Platinum credit cards tend to offer much higher credit limits than regular or gold cards.
You travel frequently. Platinum credit cards tend to offer helpful insurance coverage. If you’re a frequent traveller, a credit card with comprehensive coverage may be the way to go.
Eligibility requirements for platinum credit cards
Qualifying for a platinum credit card requires that you meet high minimum income requirements. Annual income requirements typically sit around $60,000 to $80,000, however, some cards will have a minimum of around $120,000 or higher. Usually, you can combine your household income in order to meet the minimum requirement. In addition, you’ll usually need to meet the following requirements:
Be at least 18 years of age, or the age of majority in your province or territory.
Be a Canadian citizen or a permanent resident with a valid address.
Be employed, have a steady income and meet the specified minimum income requirement.
Meet a minimum credit score requirement.
What are the pros and cons of platinum credit cards?
Pros
High credit limits. Platinum credit cards offer greater spending power through noticeably high or uncapped credit limits.
Better earn rates. Platinum cards give cardholders the ability to earn more rewards points per dollar spent. You can typically expect to earn around double the points when compared to a regular credit card.
Extras. You can typically expect benefits like access to a personal concierge service, early ticket access and comprehensive complimentary insurance coverage.
Cons
Annual fees. You can expect to pay a high ongoing annual fee for a platinum credit card. This can work against you if you don’t make use of your card’s extra features.
High interest. If you don’t pay off your balance in full each month, you can expect to pay a high interest rate on the balance when compared to how much you’d pay if you used a low interest rate credit card instead.
What to consider before applying for a platinum credit card
The benefits of a platinum credit card are only worth it if they offer more value than the costs that come from any interest charges or annual fees. Consider the following questions to help you find options that work for you.
How much do you spend on your credit card? If you’re considering a rewards option, you should make sure the value of the points you earn outweighs the cost of the annual fee.
How many premium card features will you actually use? Be realistic about which benefits you’ll use so you can find a card that provides value based on your spending habits and circumstances.
Do you carry a credit card balance? You could end up paying hundreds of dollars in interest and fees every year if you carry a balance using a gold, platinum or black card as most have high standard interest rates. You might want to consider a low interest rate option instead.
Do you have an excellent credit history and credit score? These credit cards all require good to excellent credit history. If you have black marks on your credit file, such as late payments or defaults, you may not be eligible to apply for a gold, platinum or black credit card.
Bottom line
A platinum credit card brings with it a range of benefits, but consider applying for one only if you think you’ll be able to use it in a way that can justify paying its annual fee. There are plenty of credit card options to choose from, so take time to compare as many as you can before deciding which one works best for your spending habits and financial situation.
This will depend on the rewards program you're part of, because while rewards points expire with some programs, they don't with others. Contact the provider to confirm before applying for the card.
This will depend on the provider, although most platinum cardholders can apply for additional cards. Whether you have to pay an additional card fee or not will again depend on your card provider.
If your primary card comes linked to a rewards program, additional cards linked to it should earn rewards points as well.
When you apply for the credit card, most issuers will let you know if your application has been approved or rejected within a minute. If you receive a pending response, this means the bank needs to spend more time assessing your application. In this case, you can usually expect a response within a week. If you're approved, your card should arrive within 5-10 business days.
Adrienne Fuller is the former head of publishing at Finder US. With a decade of experience creating guides in finance and education, she aimed to deliver the accurate and transparent information she wished she had when she made some of life's important financial decisions. Adrienne has a BA from Colorado College and loves to hike with her two Catahoula dogs.
Find out how much you need to earn each year to apply for a credit card and compare other factors that affect your application.
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