What You Need to Know About Platinum Credit Card Offers

The word 'prestige’ comes to mind when you start talking gold and platinum cards, and there’s a reason for this. Higher level cards are able to offer you fewer restrictions, higher credit limits, help and customer service on demand, convenience, security and features.

Q: What makes a credit card be platinum level? A: Its simply a high end card with more perks than your average card, with more cost involved in having one and more requirements needed to be eligible. To successfully apply you usually need to be earning $50,000p.a. or more and have a near perfect credit rating. This instantly makes the card more exclusive than most.

In terms of annual fees you’re usually looking at around $100 to $1,000p.a. This puts platinum cards out of reach for many, however, keep in mind, that the benefits could actually save you more than the annual fee because of the bonuses and features you gain access to. You just have to make sure the card suits you, your lifestyle, your income and your spending so that this will indeed be the case for you.

Q: What are the benefits? A: These cards offer a host of special features that make them as desirable and up-market as they are. Some of the benefits they offer may include: highly competitive rewards programs; personal 24/7 concierge service; complimentary travel insurance; contents insurance; discounts and offers (entertainment, car hire etc); purchase security; cover and warranty; and commission free traveller cheques. Different cards will obviously vary somewhat.

Q: How is a platinum rewards program superior to other cards? A: One of the ways that reward programs on platinum-level cards can be more attractive is that the earn rate (points per dollar spent) is usually higher than standard reward program credit cards. This means that every dollar you spend on your card is earning you rewards faster. For example, you might earn 1 point per $1 spent on a regular credit card, 1.5 points per $1 spent on a gold card but you’ll usually earn up to 2 points per $1 on a platinum card.

Additionally, caps or limits on the points you can earn will usually be higher, meaning you can go further with your points and few expire, so no need to frantically keep track of points before they disappear.

Q: What can points be redeemed for? A: As per usual, points earned can be redeemed for a variety of things. It depends on the program that comes with the card but you can spend your points on everything from travel (air miles), fuel & grocery savings, merchandise, gift vouchers or cash back. You always want to check the details on the rewards program that comes with the card though to make sure that you can redeem your points for something you actually want or need.

Q: What are the features I should look for most in a platinum card? A: The two of the things of most value are the security features that protect your identity & finances and the high credit limits. This gives the cardholder freedom to make large purchases with peace of mind knowing they won’t be as badly stung by the interest as many other cards, if for some reason they can’t pay the whole amount back straight away.

Additionally, the complimentary travel insurance is a huge plus saving cardholders hundreds each year, especially if they travel regularly. You just have to be careful to check what the insurance actually covers you for. Coverage varies significantly from simple lost baggage cover, to accident cover, all the way to legal and medical assistance should you need it.

Balance transfer rates and periods are something else to keep a look out for. If you have balance you’d like to transfer, you want to make sure that the rate and period of the introductory rate are going to work for you.

Finally, the 24/7 personal concierge service that most platinum cards come with can be a life-saver for the busy cardholder. Your concierge is able to assist with flight and hotel bookings, helping you find a laundromat or a good place to eat. All those little things you can run out of time to sort out can be done for you.

Q: Is the annual fee worth paying? A: This is an important question. As mentioned, annual fees can go up as high as about $1,200 for the most elite cards. Whether or not it’s worth it will be a huge deciding factor if you’re eligible and consider applying. The way you can answer this question is by sitting down and doing your sums. Look at what the card has to offer, and figure out what features and benefits you will use, how many points you can earn and redeem based on your typical monthly spend, how much this will save you and then compare your final figure with the annual fee on the card. If the annual fee is higher than what you save, don’t bother, but if it’s lower, the card could be of significant benefit to you!

Q: When is a platinum card not worth it? A: Any card isn’t worth it if you’re paying more than what you’re getting out of it whether that be in terms of convenience or rewards and so on. As mentioned above, if the annual fee is higher than what the card is saving you by having and using it, you’ll want to look into another card.

Q: Will I have access to a concierge service? A: Yes, nearly all platinum cards offer this handy feature. Most concierge services can take care of anything from arranging airport transfers to booking you a table at a restaurant.

Q: What makes me eligible for a platinum card? A: High end cards aren’t just available to anyone. Basically, you’ll need a salary of at least $50,000, and often up to $60,000 or $70,000, and be able to prove that this is a steady income. You also need to have a practically flawless credit rating. Credit card providers certainly want to make sure you’re a responsible cardholder before they mint a new card for you. Finally, there will also be a minimum age of 18 or 25 in some cases.

If a platinum card is out of your league, don’t despair, there are loads of other fantastic rewards credit cards with fabulous benefits available!