Classic vs Prestige Credit Cards
Posted September 19th, 2010 and last modified February 20th, 2013
What is the difference between a Classic and a Prestige Credit Card?
There is a huge choice of different credit cards available. All of these offers have different benefits that will suit some customers better than others. You have credit cards with low interest rates, others with no annual fee. Then there is the balance transfer for life card, and what about a rewards card?
The choice can often be very confusing for a beginner.
Some consumers may well get a credit card without really having much of a financial plan. They may not be looking for a balance transfer, or lower interest rates, and these free spirited customers are often charmed into getting prestige credit cards.
What are Prestige Credit Cards?
These cards work in much the same way as classic credit cards, except they come with special bonuses and incentives for members. You will normally recognise one of these cards, as they are generally offered in the form of a gold, silver, platinum, and sometimes even a black version of the card.
Platinum Credit Card
The American Express Platinum provides a prestige service offering and privileges program including concierge service and preferential treatment services around the globe.
- $900 p.a. annual fee
- 51 days interest free
- Minimum Income Requirement of $100,000 p.a.
Read the American Express Platinum Card terms and conditions.
What’s on Offer?
Most of the time prestige credit cards come with benefits such as reward schemes, where members gain points each time they spend money on the credit card. These points can then be redeemed for various treats such as air travel, gift vouchers and holiday accommodation.
Another common feature of these cards is complimentary insurances, for example travel and health insurance, and purchase protection warranties. They also tend to promise better customer services, and sometimes a higher credit limit than available with classic credit cards.
Is There a Catch?
Not as such. However that said what you will normally find with these “super” cards is that members will have a pay a larger annual fee. It is not uncommon to find the interest rates on these cards to be slightly higher than the standard cards.
When it comes down to it, when deciding whether to go for prestige credit cards vs classic credit cards, what you have to consider is how you will use the card.
If you are going to spend often but pay off your full balance each month, and do not mind a higher annual fee, then the rewards that come with a prestige card may be made worthwhile.
If however you can do without the champagne, gift vouchers, and just want a simple, cheap and easy to manage card, then you may well be better plumping for our plain old friend, the good old classic!
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