Credit Card Guide
What is a Platinum Credit Card?
While a charge card can be used in a similar way to a credit card, the options to repay the balance owing are vastly different. A charge card has to usually be paid off in full at the end of every month, whereas a credit card has the option of repaying a different amount every month, depending on interest and charges owing.
There are also many different types of credit cards available, and the application and its success will usually depend upon the applicants' credit worthiness. Credit report agencies are contacted with regard to an application in order to discover the applicants' credit score or rating and to determine whether or not a credit card can be issued.
Benefits of a Platinum Credit Card
Many banks and financial institutions offer platinum credit cards facilities to their customers, or potential new customers. Platinum cards are considered to be the ultimate in credit cards, and are most often reserved for those customers with excellent credit histories.
This in itself can be one reason why people prefer to use a platinum credit card, as there is a certain status elevation that goes along with owning one. A business man or woman may feel that they can impress clients or potential customers when they use a platinum card as opposed to a regular credit card that most people would be able to obtain.
More practical reason however, can include added benefits only applicable to platinum card holders. Platinum cards usually have a higher credit limit, and in some cases the limit is non-existent. They tend to have lower APRs than basic credit cards, making those more expensive purchases more attainable. Fraud protection and card replacement services are also usually of a higher standard. Banks will also offer bigger incentives for customers to apply for their platinum card, with exclusive member discounts and purchase offers.
The platinum card is also ideal for travelers as most offer emergency cash and travel protection as well as the usual purchase protection. Many also offer rewards points or cash back opportunities as further incentives. When free tickets or discounted offers to concerts and sporting events are also offered, it is easy to see why the platinum card is the card of preference for many.
Although the 4 major companies that offer a platinum credit card include: American Express, Discover, MasterCard and Visa, there are other banks that offer the platinum credit card.
Platinum Credit Card Cons
Care should be taken when applying for a credit card from a relatively unknown financial organization, as there are numerous scams that circulate the credit card circuit. Claims of offers or benefits that can not be obtained by other card providers are among the highest underhand methods. Such claims might be true in some cases, but the old adage of 'if it sounds too good to be true it probably is' should be heeded.
If a company asks for any upfront fees, requests you to call a "900" or "976" exchange before you get your card, or offers false rewards or prices, think twice before accepting an offer of a platinum card from them. Research the company and the card on offer carefully, and if you are still in any doubt then contact your state's Attorney General Office or the Better Business Bureau for confirmation or validity.
Prior to Platinum Card Application
Before applying for a platinum card, research and compare different cards and their costs, fees and rewards. Remember that in some cases platinum cards come with higher costs, so any rewards or benefits need to be weighed up to ensure the rewards you are receiving outweigh the cost of interest or fees.
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