Posted on Saturday 10 September 2011
Even the biggest credit card novice will have noticed that precious metals feature pretty prominently in the names of certain cards. For the consumer, the use of names like green, gold and platinum is an instant way of working out whether a card might be right for them and their current situation. For the issuer, it’s a way of segmenting customers and deciding the types of credit limits that should be handed down to certain applicants.
As you might guess, a platinum credit card is usually the most ‘prestigious’ card that many issuers can hand out. It comes with certain features and rates that lesser cards such as green and gold may not. Although details can vary between issuers, its name generally refers to the credit limit, which can often be substantially higher than with other cards.
As a consequence, platinum cards are generally handed out only to the wealthy, as these are the customers most likely to use that credit limit to its maximum. No matter how good your credit score is, if you’re on a low, average or even fairly good salary you’re unlikely to be accepted for a platinum card. However, if you tick many of the boxes issuers are looking for, then a platinum credit card could soon be nestling in your wallet.
If you’re in a position to be accepted for a platinum card, it’s worth asking yourself a few important questions before signing on the dotted line. The most important being whether you really need the credit limit set on the card. If you’re earning a high salary but spending relatively little of it and choosing to save, could having a platinum card encourage you to spend more than you need to? On the other hand, it’s always useful to know that credit is there if you need it.
Of course, if you’re unable to get a platinum credit card, there’s no need to worry – there’s plenty of other great cards on the market that could be suitable for you. Not being accepted for the card is simply a sign that it’s probably not right for you.
For example, rewards credit cards could be worth looking into as they give you a bonus just for spending on the card, whether this is cashback, airmiles or access to deals and offers. There’s plenty out there to choose from, meaning there’s a range of ways to put a bit of money back in your wallet each month.