Is it worth getting a Platinum Credit Card?

21st March 2011

Just like driving an expensive car or owning a luxurious home, people tend to love the status and the prestige associated with a platinum credit card.

When credit cards were first introduced, the proposition they offered was pretty simple. Clear the balance after a month or pay interest on the debt you have accumulated. There was little to no benefits offered to the customer. And it was a perfectly normal circumstance to charge customers just for the privilege of carrying the card. Over time, as more and more banks got into the credit card act, competition increased and so extra features became common. The easiest way for a card to stand out is to be labeled as a 'platinum' card, implying a level of status and prestige. Generally speaking, what these cards offered are some sort of premium services and rewards such as travel benefits, free insurance and extra purchase protection. However, the minimum requirement to obtain a platinum credit card usually includes requiring a higher income level and a good credit history.

The first question you may ask is "Are platinum credit cards worth applying for?" To answer this question, you must first ask yourself how high your spending is. Just like any other rewards card, the more you spend, the more reward points you will get. Therefore, if you are a big spender, then yes these cards are worth applying for because you can only enjoy the benefits after you have made big purchases.

With status and prestige, come the benefits. Unlike the other cards, platinum credit card offers the cardholder more benefits compared normal credit cards. Most platinum credit cards will feature the majority of these benefits, some less and some more:

The very first benefit is Domestic and International Travel Insurance. It is a convenient mode of insurance even though the extent of the cover may be limited depending on the cards annual fee and level of bank service.
High credit limit. When using a high end card, rest assured that you will have a high level of credit available to you when you need it. Usually the limit is up to £100,000.
Generous Rewards Program. For every pound you spend using your credit card, you will earn a number of point that you can use towards free tickets, eating out, holidays, shopping vouchers and many other rewards.
Purchase & Refund Protection. Some cards, offer up to 90 days purchase protection and refund security for purchases.
Entertainment Discounts. Banks will often provide discount prices on tickets for a wide range of entertainment services and shows.

Interested in a platinum card? There are some basic requirements you will need to pass before you may consider applying for a platinum credit card. Like most credit cards, the better your credit score, the easier it is for you to get approved. For a platinum credit card, you will need a high credit score. The second requirement will be your minimum yearly income. Platinum cards are known for their high spending limit. No company wants to hear that you are declaring bankruptcy because you can't manage your money well. Therefore, credit card companies will determine whether they think you will be able to pay your debt when using a high limit card. In conclusion, it is not hard to apply for a platinum credit card. You just need to have a high income and good credit score.

If you can find a card that suits your needs and offers benefits you desire and it just happen to be a platinum card, then that's not a problem at all. Just make sure you are not fooled by the marketing hype into thinking that a platinum credit card is a necessity.