Enjoy exclusive benefits, higher reward points earn rates and larger credit limits with a platinum credit card.
If you want to enjoy exclusive extras, competitive rewards and higher spending power when you pay with plastic, a platinum credit card could be right for you. This guide covers what a platinum credit card is, the benefits of using one and some of the factors you should consider when comparing whether or not one is right for you.
What is a platinum credit card?
Placed in a higher tier than a classic or gold credit card, platinum products usually come with higher credit limits and are better suited to big spenders. Platinum credit cards also offer premium extras including concierge services, rewards programs with large bonus points offers and competitive earn rates and complimentary insurance covers. Some platinum credit cards also come equipped with airline lounge passes, cashback offers and entertainment experiences.
These cards usually come at the cost of a higher annual fee and interest rate, though. Plus, you might also be required to meet a higher minimum income to receive approval.
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:
- Higher credit limit. Platinum credit cards regularly come equipped with higher credit limits, giving you greater spending flexibility. It will vary between products, but some platinum credit cards offer credit limits as high as $50,000.
- Rewards. Most platinum credit cards come linked to a rewards program. Whether it’s a credit card rewards program or frequent flyer loyalty scheme, these cards usually come with thousands of bonus points and a competitive earn rate per $1 to help you earn and redeem rewards faster.
- Complimentary insurance covers. When you use your platinum credit card to make purchases, you can access complimentary purchase covers like guaranteed pricing scheme, purchase cover insurance, and extended warranty insurance. Plus, if you meet the eligibility requirements and use your card to pay for travel costs, you could also receive complimentary international travel insurance, interstate flight inconvenience insurance, and transit accident insurance.
- Personal concierge service. Like a personal assistant that comes with your credit card, a platinum concierge service offers 24/7 assistance to help with everything from setting up business meetings, booking a restaurant reservation or organising travel plans.
- 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 areas like travel, shopping, and dining.
- Promotional offers. Some platinum credit cards also come with competitive promotional offers including 0% balance transfer deals, interest-free purchase offers and bonus points when you meet a spend requirement.
How can I compare platinum credit cards?
As most platinum credit cards boast a variety of perks, here are some of the factors you should consider when weighing up which one is right for you:
- Annual fee. While some platinum credit cards come with a $0 annual fee, they can be as high as $450 p.a. depending on the product. Make sure that the features of the card aren’t outweighed by the annual fee to get full value from the product.
- Purchase rates. Some platinum cards may come with promotional interest-free purchase rates, but standard purchase rates can be as high as 21.99% p.a. As such, platinum cards may be best suited to cardholders who regularly pay their balances in full and avoid interest. Plus, if you pay your balance in full, you’ll most likely be able to take advantage of interest-free days too.
- Bonus points and earn rates. As most platinum credit cards come linked to a rewards program, it’s important to understand how many points you’ll earn per $1 and whether any caps, reduced earn rate thresholds or expiries apply. Many platinum cards also offer bonus points on sign up, although you’ll usually need to meet a spend requirement to access them. Determining how many points you could potentially earn with a bonus points offer and the earn rate is important to consider before applying for a platinum card.
- Available features. Most platinum credit cards boast an array of extra features, but you should consider whether they suit your lifestyle before you apply. For example, airline lounge passes may suit a frequent flyer while a concierge service could be a better option for someone with a busy schedule. Regardless, make sure that you’ll take full advantage of the bonus extras to get the most out of your card.
Who are platinum credit cards best suited to?
Platinum credit cards are usually suited to big spenders who regularly pay their account in full each month. This is because these products often come with high annual fees and interest rates. These cards are also beneficial to regular shoppers who want to earn points as they spend. Plus, bonus points offers can help give your rewards balance a boost if you meet the spend requirements. As platinum cards are packed with extra features, they’re also suited to cardholders who want to get more value from their card.
These cards usually come with higher minimum annual income requirements of at least $50,000, although it will vary from card to card. Before you apply, make sure you meet the eligibility criteria and have the necessary documents on hand.