Thursday, June 6, 2013

When to take the jump to platinum

You have a gold card and you are wondering whether or not to make the step up and switch to a platinum card. But, is it worth it? Knowing the requirements of eligibility and getting a solid understanding of the benefits (and fees) are necessary before making the decision. Before jumping in, be sure to do your due diligence and review a number of platinum credit card offers. Generally speaking, platinum cards are intended for high-spenders who have a high income and excellent credit history. If you think this fits your lifestyle and spending behaviour, continue to do your research and read on.

When deciding on whether a platinum credit card is right for you, evaluate the offers on the following merits:

Eligibility Requirements
More so than gold credit cards, platinum credit cards want to ensure they remain exclusive and therefore they usually have fairly strict qualification standards. The usual requirements will be that you need to have a perfect credit rating, a yearly income of at least AUS$50,000 and meeting the minimum age level which varies between 18 to 25 depending on the card provider.

Rewards
If you decide to take the leap up to platinum status, you will need to shop around for the card that suits your spending habits and helps you get the most out of your card. Read more than just one platinum credit card review to see what current cardholders think of their rewards system. In general, the higher you go up in the chain of credit card statuses, the more rewards and benefits you are entitled to. Typically, the platinum credit card with give you 6 months of insurance, which is longer than the gold card or standard card.

Another important factor to consider is how often you are likely to use your platinum credit card and how much you will spend on eligible transactions such as, flights. Although you may qualify for the card, if you don't plan on using it frequently enough, you won't really be able to take advantage of the rewards. Getting involved with a platinum credit card often times means you need to plan your year ahead as you decide the amount you will spend on products or services which will earn you bonus points or activate other insurance benefits.

Security
High on the list when looking for a new credit card is security and an advantage of being a platinum cardholder is the added security and protections you will receive. Some platinum credit card providers offer 24 hour account monitoring which will help to ensure you are not a victim of fraud or crime.

High Credit Limit
One of the biggest advantages of the platinum credit card is that you receive a high credit limit, meaning you can make those large purchases with a swipe of your platinum card. However, if you plan to make a number of expensive items, be sure that the platinum card you have, gives a good return between money spent and the points you receive.

Low interest rates
If you hold a platinum card, you are no longer seen as a credit risk to your card provider and therefore you usually receive a low interest rate. Still be sure to shop around for the best deals on interest rates and check that the interest rate doesn’t change after a certain amount of time.


Before deciding whether or not to get a platinum credit card, you should sit down and read all of the extras and services included within each platinum credit card to see which is or isn’t the platinum card for you. This process can be made quicker by looking at platinum card reviews and reading up on customer feedback. Paying the higher annual fee will mean you will want to get your decision right the first time and take advantage of all the perks and rewards the card offers.

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