If you’re a big spender, have a high income and want lots of lucrative rewards, a platinum credit card might be just what you’re looking for.
Platinum credit cards sit at the top tier of credit cards, above standard and gold. Platinum credit cards often have the highest fees and interest rates, but also come loaded with perks.
What rewards and perks can I expect with a platinum credit card?
There are a lot of platinum credit cards offered by banks and credit unions using Visa, Mastercard and American Express services. Each, though, delivers different rewards.
Here’s some of the most common rewards with platinum credit cards:
- Cashback rewards
- Frequent flyer points
- Domestic and international travel insurance
- Rental car excess cover
- 24/7 concierge
- Gift cards
- Entertainment discounts
- Extended warranty on purchases
Although many of these services are also offered by gold credit cards, the dollar value of these perks can be a lot higher with platinum credit cards.
For example: you may be offered 2 rewards points for every $1 you spend on a platinum credit card, as opposed to 1 point per $1 on a gold credit card.
These points can often be turned into cash you can use to pay off your next credit card bill.
To see the variety of rewards offered, use RateCity’s credit card comparison tool.
What should I look for when comparing platinum credit cards?
- Fees: Generally platinum credit cards have the highest annual fees. They can range from $100 to over $1,000. It’s smart to make sure the benefits of the platinum credit card are worth more to you than the fees you’re paying.
- Maximum credit limit: Depending on your financial position, the maximum credit limit for platinum credit cards may run into the tens of thousands or even hundreds of thousands of dollars; sometimes, it’s unlimited. Consider choosing a card with a credit limit that meets your financial needs. If you want to compare maximum credit limits, click here.
- Interest rate: Although platinum credit cards often offer longer interest-free periods, the interest rate may also be significantly higher than standard credit cards. If you’re not likely to pay off your entire bill on time, a credit card with a low interest rate may suit you better.
- Rewards: Pick a credit card that has benefits you’ll use. For example, if you travel a lot, you might get a lot of value from the free travel insurance and rental car benefits. Also, be aware that platinum credit cards often require you to spend a significant amount each month to be able to claim cashback and shopping rewards. Check the terms and conditions carefully.
What criteria will I need to meet to be approved for a platinum credit card?
Platinum credit cards are some of the most difficult cards to get approval for. Although individual financial institutions have their own criteria, you’ll almost always need a good credit score and an income of at least $60,000 per year.
You’ll need to be at least 18. When you apply (either online or in person), you’ll need to produce some or all of the following documents:
- A copy of your driver’s licence
- A copy of your passport or Medicare card
- Proof of income in the form of recent payslips, an ATO tax statement or a letter of employment
- Employer or accountant contact details