Platinum Credit Cards Credit Cards

Platinum Credit Cards

When it comes to credit cards, the three levels are generally considered to be standard, gold and platinum. For many years, credit card companies Australians have trusted over the years have created different levels of credit cards as a reward to those with excellent credit ratings.

The platinum credit card Australians enjoy using is considered the best of the three types of cards that are available. But what is a platinum credit card and does it really live up to its promise of being the best that you can find?

What is a Platinum Credit Card?

This type of card is considered the highest level of credit card available. It is for those who have demonstrated excellent credit over a pre-set period of time and in some cases have stepped up from using gold cards. The only real requirements for most platinum cards is that you must be 21 or older, earn a significant income and have an excellent credit rating.

As with gold cards, platinum cards do vary in terms of their credit limit, interest rates and rewards depending on the company that issues the card. However, there are certain standards that all platinum cards offer which means that there are benefits and potential pitfalls for using this type of card for your purchases.

Advantages and Disadvantages of Platinum Credit Cards

Lower Interest Rate: Certainly one of the biggest advantages of having a platinum card is that the interest rate is significant lower than a gold or standard credit card. Because the card holder has proven their worth in terms of keeping good credit, they are rewarded with a lower interest rate.

Higher Credit Limit: Many platinum cards have credit limits in the tens of thousands of dollars which means that a major purchase such as a vehicle might be made when using the card. This is an option when comparing rates between the card and standard auto loans. However, the higher credit limit can be used for all types of purchases.

Greater Rewards Package: Another incentive that credit card companies’ use is having better rewards packages for customers who have a platinum credit card. The rewards can be for frequent flyer miles, or discounts on products as well as other types of rewards that are frequently found on credit cards. These are more incentives to help entice people to get a platinum credit card, but there are some real advantages.

In addition, there are often extended warranties and buyer protection at higher levels than can be found with standard or gold credit cards.

As for the disadvantages, there are really none outside the scope of the cards themselves. A person will have to keep their credit score high and use the platinum card wisely in order to maintain the lower interest rate. Essentially, if they stay within their budget and pay off the balances quickly they will maintain the status of their card.

Overall, a platinum credit card Australians use on a daily basis offers numerous rewards and benefits that make them well worth qualifying for and receiving.

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