A Platinum card is a credit card which, as its name suggests, is a card with more prestige and benefits than a gold or regular credit card. Credit cards follow the same logic as the valuing of precious metals! Just like a platinum ring is more valuable than a gold ring, the platinum card enjoys higher status than a gold card. A Platinum card offers several tangible benefits when compared to other regular credit cards, and is also in demand for its image as a prestige card for high end customers.
What are the features of a Platinum card?
A Platinum card can be one of the most expensive cards to own in terms of annual fees (where applicable), but it also offers several benefits to cardholders. Each credit card issuer offers its own set of exclusive privileges to its Platinum customers and these could include:
High or uncapped credit limit: Platinum cards have a higher credit limit than regular or gold cards which gives you much more flexibility in spending.
More rewards points per rupees spent: These cards will give you more reward points than other credit cards for the same amount of money. You can redeem these points for a variety of gifts or vouchers. So, for instance, if you get I reward point for every Rs. 100 spent on your regular credit card, a Platinimum card could offer you 1 reward point for Rs 50 or perhaps 2 points for every Rs. 150 spent. Each bank or credit card company has its own rewards programme.
Travel privileges: You can get savings with Airline Partners, free membership to hotel rewards programmes, and complimentary access to airport lounges. You can also avail of conceneirge services to assist you on travel and enteretainment options.
Leisure: Some cards offer vouchers on movie tickets. You can avail of complimentary golf at premium courses across the country and enjoy savings at hundreds of restaurants.
Should you apply for a Platinum card?
Which card you apply for depends on your individual spending discipline, repayment behaviour and credit eligibility. You will need to have a good credit history (and a score of 750 or above) and a high income in order to qualify. Howeer, you need to also look at whether the benefits are of use to you.
Privileges: If you do not play golf, then a card that offers complimentary golf is not of much use. Similarly, if you do not travel regularly by air then airline savings and lounge access is a waste.
Charges: Don’t forget that these cards do not come cheap – while some issuers might waive charges, in general the annual fees can be quite steep.
Credit limit: If you are prone to spending freely, then having a high credit limit can lead to getting into debt.
If you are sure of paying off your balance in full and on time, and if you think you will make use of the privileges, then you should consider applying for a platinum card. While a platinum card may seem glamourous and desirable, keep in mind the nitty gritty plastic details behind the shiny metal façade before you make a decision.