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Despite what the name might suggest, a gold credit card is very similar to a standard credit card and can be suitable for someone that uses a credit card frequently.
This is because gold credit cards typically come with a reward program, which like a loyalty program encourages loyal buying behaviour. So gold credit card holders can benefit from ‘freebies’ such as entertainment, travel and store vouchers when they spend using their card.
This is often a real drawcard for shoppers, which may feel that they deserve something in return for selecting a specific card in a saturated credit card market.
The downside of many gold credit cards is the often high rate of interest and fees attached to the card.
Those people that struggle to repay their gold credit card bills within the interest-free period can often be hit with higher-than-average interest rates, for the sake of a rewards program. So if you are the type of spender that struggles with repayments, then a high-interest rate, rewards car may not be worth the extra costs.
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Consider whether this general financial advice is right for your personal circumstances. You may need financial advice from a qualified adviser. Read our detailed disclosure here.
