Gold & Platinum Credit Cards

What are gold and platinum credit cards?

Many people seem to believe that gold and platinum credit cards represent a higher credit status, but the in reality however, their interest rates are not much different from standard credit cards rates and although they normaly require a higher level of income they are still available to those with a good credit rating.

What the difference between these two types of cards, well these days there really is little difference between each of the two. The only two noticeable exceptions are:

Spending Limit

Although the cards are supposed to signify a higher credit limit and spending power, in fact what they do is act as a signal as to your supposed income. This is because as you go up in the line of colors, so (supposedly) should your income ?and thus your spending limit. The only problem with this is that while the platinum card used to be an ‘invite?only card, these days the qualifying salaries for each of these cards are set so close together that you do not really need to be earning that much in order to qualify for a platinum card!

Membership Fees

These days the amount you need to pay in annual membership fees to card providers is the biggest difference between these types of credit cards. In part due to kudos element, card issuer feel at liberty to charge cardholders of platinum cards far more than they do to those who hold silver cards, which may, indeed, even be free of a membership fee!

So, while your spending limit may not be that significantly higher having a platinum card rather than a silver card, your membership fee almost certain will. The decision that you have to make, assuming you qualify, is whether you are willing to pay that extra amount in membership fees to have a higher ranking card. And by adopting a policy of silver, gold and platinum credit cards, the issuers are banking on you doing wanting just that!