What Is The Difference Between Platinum Credit Cards and Classic Credit Cards?
Posted November 14th, 2009
and last modified February 12th, 2010A platinum credit card is to a classic credit card what an S-Class Mercedes is to a Ford Focus. Both will get you from A to B, but you’re bound to notice the difference in comfort with the S-Class, and other people will also sit up and take notice of the luxury marque.
The main differences that set a platinum credit card above a classic card are:
- Increased borrowing power with higher or unlimited credit limits.
- Higher income to be eligible.
- Often higher interest rates.
- Greater benefits such as extended warranties and insurances.
- Better rewards schemes.
- Increased purchases protection.
The real difference between a platinum credit card and a classic credit card will only be noticed if the platinum credit card is being put to its full use. If it is only ever used for the occasional high street purchase (excluding a new BMW from the local showroom), and it is sitting in a wallet or purse solely because the owner has an income that has made them eligible to carry one, then, practically, the platinum credit card will be the worse card to have because it will be costing a much higher annual fee for no more purpose.
For a platinum credit card to be worth its annual fee, the owner of the card should live the kind of lifestyle that demands the benefits offered by such a card. They will need to be spending more, or at least potentially need that higher credit limit, and maybe travelling more.
Benefits of the platinum credit card:
The main benefit of owning a platinum credit card is that you will be eligible for a much higher credit limit. Most platinum credit cards do not even specify an upper credit limit.
Provided you use your platinum credit card to pay for foreign travel, that journey will be covered by complimentary travel insurance. You will also be covered up to a certain level for medical expenses whilst abroad, for the loss or theft of your possessions, and for any travel delays that cause you to be out of pocket, for example because you miss a flight.
A Platinum credit card will also include purchase protection insurance. This covers you against any purchased goods being lost, damaged or stolen, and can extend for up to three months from the date the purchase was made. It will also allow for the return of faulty or unwanted good in that time. Many shops only allow you to return goods within either seven or fourteen days.
Another advantage of a platinum credit card can be the inclusion of an extended warranty above and beyond that provided by the manufacturer. If you enjoy the peace of mind of extended warranties, then this will save you having to fork out for one yourself.
Platinum credit card owners should also enjoy the benefits of a Concierge service, as provided by either Visa or MasterCard. This service allows the customer to find pretty much anything they want at any time of the day or night. Platinum credit cards benefit from the same interest-free days as standard cards, and the same offers on balance transfers. Equally, they will boast some attractive reward schemes.
| Credit Card | Card Details | Interest Rate p.a. | Cash Advance Rate p.a. | Balance Transfer Rate p.a. | Annual Fee | Interest Free Days (Up To) | |
|---|---|---|---|---|---|---|---|
|
Available as Visa or MasterCard. Complimentary overseas travel insurance. |
18.99% | 18.99% | N/A | $90 | 44 |   |
|
Gain velocity reward points and redeem for rewards. |
19.49% | 19.49% | 3.99% for 6 months | $150 | 44 | |
|
Comes with a Visa and American Express card, both linked to one account and annual fee. No point expiry. |
19.49% | 19.49% | 6.99% for 6 months | $145.50 | 44 | |
|
Comes with a Visa and American Express card, both linked to one account and annual fee. No point expiry. No points cap. |
19.49% | 19.49% | 6.99% for 6 months | $290 | 44 | |
Related posts:
- What Is The Difference Between A Gold Credit Card And A Classic Credit Card?
- AMEX Qantas Classic Credit Card
- NAB Classic Banking Details & Application
- AMEX Qantas Classic Credit Card – Review & Application
- How Much Money Will I Need To Earn For A Platinum Credit Card?
- Gold Vs. Platinum Credit Cards – Which Is Better?
- What Is The Difference Between Retail Reward Credit Cards And Store Cards?
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