The Difference between Standard, Gold, and Platinum Credit Cards
Posted February 27th, 2011 and last modified February 23rd, 2012There are a lot of different credit cards on the market these days and you may have been thinking what is the difference between a standard and a platinum credit card.
While a platinum card has all the standard features that you can find on a regular card, it also comes with prestigious features that can only be found on a platinum card.
You may be entitled to get a premium gold card if you meet the qualifications set, but at first you should understand what is the difference between a standard and a gold credit card. Only then should you decide which card you would like to apply for.
Every gold card will have different benefits associated with it, and these will be based on what is being offered by the card issuer and what type of card it is. Some of the standard benefits found on gold cards include extra fraud protection, purchase protection, discounts and extended warranties. Quite often the interest rate will be a bit lower than the rate found on a standard card.
To find out what is the difference between a standard and a gold credit card take a look at the extra features you will find on the premium card.
- Higher credit limits available.
- Better interest rates.
- Additional premium benefits.
- Purchase protection.
- Extended warranties.
- More rewards points.
Credit Limit
Upon first glance at these different tier credit cards, you might not be able to tell exactly what sets them apart, and this is understandable. Take the Westpac Earth card, for example. The standard card, the gold card and the platinum card all feature the same 19.99% p.a. purchase rate, the same 21.49% p.a. cash advance rate and an identical balance transfer offer. So, if you were to look no further, you would just think it was a matter of pretty colours.
However, a closer look will reveal that there are differences and they are quite significant. First of all, the credit limit differs quite a bit. For example, the standard card offers a maximum limit of $1,000, while the gold card comes with a $5,000 limit and the platinum card goes all the way up to $8,000. Of course, just because you want to get a higher credit limit, that doesn’t mean you can because the higher up you go, the stricter the conditions for approval are. Generally, you will find that as you go up in tiers, each of these credit cards requires you to have a higher level of annual income and a gold card or a platinum card usually demand a spotless credit history.
Rewards
Another major difference between these credit cards is the rewards and benefits you will have access to. For example, with the Westpac Earth credit card, which is tied in to the Qantas frequent flier program, you can earn 1.5 miles per dollar with the platinum card, 1 mile with the gold card and 0.5 with the standard card.
You will also find that you get more benefits the higher you go. Therefore, with a platinum card you are offered six months of complimentary insurance, with a gold card you get three months, and no insurance with the standard card. Higher tier cards also offer extended warranty on purchases and many other benefits that you won’t find on a standard credit card.
However, all these privileges come at a price, and the more you get, the more you pay. Thus, the annual fee on a Westpac Earth standard card is $75, on a gold card $125 and on a platinum card $250.
Generally, standard card holders are those with a moderate income, while platinum card holders tend to be high-spenders with a high income and a great credit report. Gold card holders generally fall in the middle.
However, just because you can qualify for a gold card or a platinum card, that doesn’t automatically make it a good choice. If you use your card rarely and the benefits and rewards won’t be of use to you, there is little reason to pay a higher annual fee when you can easily get the standard card instead. Choosing the right credit cards is quite subjective and savvy card users know that they shouldn’t apply for a certain card just because they can.
Qualifications
To be eligible for a gold card you will need to have a good income and a good credit rating. You will also need to be at least 21 years old in most cases. It is harder to get a gold card than a standard card, but the benefits are definitely worth it.
If you are doing a card comparison, you should not only look at what is the difference between a standard and a gold credit card, but you should also make a comparison between gold cards. Every card will offer a different set of premium benefits for the elite gold cardholder, so it is in your best interests to find the one that has the benefits you want in a card.
Platinum credit card benefits
Generally speaking, a platinum credit card will give you a higher credit limit than a classic card. This will all depend on your earnings and expenses, but the potential is there to get a higher limit.
Interest rates are also generally lower with platinum cards. This is due to the fact that to be eligible for a platinum card you must have an excellent credit rating to begin with. You are not a high risk and can be given a lower rate because of it. You will be able to spend more with a higher limit as well, which makes it easier for the vendor to be generous with their rates.
You can also expect to find extra fraud protection, purchase protection, extended warranties and other various distinctive benefits that can be found only on platinum credit cards.
A lot of people have heard about platinum credit cards and have always wanted to know what is the difference between a standard and a platinum credit card. Some Australians are not even aware that they would qualify for such a card simply because they did not take the time to find out more about them.
You will need to have a good income and a good credit rating to get approved for one of these cards. You may also have to be over 21 to be approved.
If you have been one of the many that has been wondering what is the difference between a standard and a platinum credit card, now is your chance to go forward and apply for one if you feel you would qualify. This is a card that a lot of Australians strive to get in their lifetime.
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