Not all credit cards are created equal. Gold credit cards, like the name suggests, offer some ‘golden’ rewards and benefits. If you tend to put a lot of purchases on your credit card but pay it off in time, a gold credit card may work for you.
Both banks and credit unions offer gold credit cards and often charge higher annual fees than a standard credit card. It’s important you weigh up the options to decide which card suits you best.
What types of benefits do gold credit cards offer?
Typical benefits include:
- Cashback rewards for every dollar you spend
- Frequent flyer rewards
- Travel perks like free international travel insurance
- Free merchandise from provider’s catalogues
- Gift cards
- Extended warranty on purchases
The perks of gold credit cards vary significantly. RateCity has a credit card comparison tool, where you can see the key differences and make an informed choice.
What should I look for when comparing gold credit cards?
- How much will you be spending each year? It makes sense for the benefits of a gold credit card to be worth more than the cost of the card. If the annual fee is $100, you probably want to be getting at least $100 in rewards and perks a year. Most rewards are calculated by how much you spend, so check what the dollar-to-dollar value is.
- Is the credit limit appropriate for your needs? Gold credit cards usually have higher credit limits than standard cards. This is ideal if you want to use credit for big purchases or for paying a majority of your bills and household expenses. However, it can also be risky for people who already have credit card debt or those who struggle to pay off their balance in full each month. Carefully consider the credit limit that suits your budget.
- Is the interest rate competitive? If you don’t pay off your credit card balance monthly, it could be worth choosing a card with a lower interest rate, even if it offers less perks.
- Do the benefits and rewards work for you? Everyone’s lifestyle is different. If you travel overseas a lot, then free travel insurance is a perk worth considering. If you do a lot of shopping, a gold credit card that offers gift cards may suit you. Be realistic about what your needs are and search for a card that offers the best value to you.
How can I apply for a gold credit card?
For starters, you’ll need to be 18 years or older. You will also need to prove you have employment; or if you’re retired or on a pension, that you have a reliable income.
Banks and credit unions usually require the following documents:
- A copy of your driver’s licence
- A copy of your passport or Medicare card
- Proof of income: recent payslips, or an ATO tax statement or a letter of employment
- Employer or accountant contact details
Wait times can vary between providers, but if your application is approved, your gold credit card should usually arrive within five to 10 business days.
*The phrase ‘some of the best’ is not a recommendation or rating of products. This page compares a range of credit cards from selected providers, not all products or providers are included in the comparison. No credit card is one size fits all. The best credit card for you will not be the best credit card for someone else. As a result, it's worth getting advice on whether a product is right for you before committing.