Platinum cards come with high minimum income requirements, but they offer high credit limits and an array of benefits in return.
What is a Platinum credit card?
Qualifying for platinum credit cards requires that you meet high minimum income requirements. You can expect such a card to offer a considerably higher credit limit when compared to basic cards, and you can also look forward to a variety of extras. Such cards, for example, tend to offer complimentary insurance covers, and cardholders usually get access to a personal concierge service as well. A number of platinum credit cards come linked to rewards programs, enabling cardholders to earn rewards as per their spending.
In most cases, the minimum income requirement to qualify for these types of cards is higher than Gold or Classic credit cards. They also feature a higher minimum credit limit with the option to increase the credit limit much higher than other types of accounts. For this reason, these are usually associated as being for movers and shakers.
Our pick for a platinum card: The Platinum Card® from American Express
Compare Platinum credit cards
What are the benefits of using a platinum credit card?
As a platinum credit card user you can look forward to a number of benefits, which include the following.
- Rewards. Most platinum credit cards come linked to rewards programs, but not all rewards programs are the same. For instance, while some cards link to frequent flyer programs, some others link to programs that offer limited reward options. Platinum cards, when compared to standard rewards cards, tend to offer better earn rates, so you can earn rewards faster.
- Complimentary insurance covers. When you use your platinum credit card to make purchases, you can make use of complimentary purchase covers like guaranteed pricing scheme, purchase cover insurance, and extended warranty insurance. Complimentary international travel insurance, interstate flight inconvenience insurance, and transit accident insurance come into play when you use your card to pay for travel.
- Personal concierge service. Such a service offers round-the-clock global assistance in matters like 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 you can get access to presale tickets. You can also expect to make use of an array of discounts and special promotions spread across realms like travel, shopping, and dining.
How can I compare platinum credit cards?
Basic features of platinum credit cards remain the same, but certain aspects can differ greatly. When comparing such cards, make sure you pay attention to the following.
- Annual fee. Just about every platinum credit card charges an ongoing annual fee, and some such cards offer annual fee waivers for the first year. Typically, the annual fee of platinum credit cards varies in between $99 to around $300, although 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, because some rewards programs allow you to redeem your points for flight tickets, flight upgrades, and travel and store vouchers. Some even allow you to use your points as cashback.
- Interest rate offers. Certain platinum credit cards come with interest rate offers, and while these normally apply on balance transfers, you can even find cards with purchase rate offers. Such offers give you the ability to pay little to no interest on given transactions for a certain time period. In such instances, the promotional interest rate and the time period can vary from one card to the next.
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. In 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. This is because the interest your platinum card charges would be on the higher side. Spending on a typical platinum card results in the accumulation of reward points, and you get to redeem these points in various ways. As a result, if you wish to earn rewards as per your spending, a platinum card might work well for you.
You can also think about getting a platinum card if you want a higher than usual credit limit. International travelers can benefit by getting such cards, owing to the complimentary travel insurances on offer.
What are the pros and cons of Platinum credit cards?
While there are considerable advantages to owning a Platinum credit card, you’ll find there are some disadvantages too. Here is a quick look at the good and the bad of owning a prestige card.
- High credit limits. Platinum credit cards offer greater spending power, through noticeably high or uncapped credit limits.
- Better earn rates. Platinum cards gives cardholders the ability to earn two to three reward points per dollar spent, whereas with standard reward cards they can expect to earn no more than one point per dollar spent.
- Extras. Extras like access to a concierge service and complimentary insurance covers work in favour of these cards.
- Annual fees. You can expect to pay an ongoing annual fee for as long as your account remains active, and this can work as a downside if you don’t make use of your card’s extra features.
- High interest. If you keep balances rolling in your account from one month to the next, you can expect to pay higher interest when compared to how much you’d pay if you used a low rate card instead.
What platinum cards are currently available?
A number of U.S. credit card providers offer platinum cards and your choices extend to choosing between Visa, Mastercard, and American Express cards. The features these cards come with are largely similar, but the perks on offer are not. As a result, fees and interest rates vary.
A platinum credit card brings with it a range of benefits, but consider applying for one only if you think you’ll use it in a way that can justify paying its annual fee. Don’t forget you have numerous options from which to choose, so take time to compare as many as you can before deciding which one to go with.