Black credit card

Whoa. Who knew there was so much grunt behind one little card? The mother of all credit cards, this black piece of plastic is certainly a force to reckon with. If you’re lucky enough to possess one, then you probably already know the benefits. For those that are yet to become more acquainted, we’re about to give you the low down.

What is a black credit card?

Premium level credit card is the name of the game, that is of course, if you’re willing to play. Each of them are provided by VISA, Mastercard or AMEX, depending on the bank and the packages on offer. You earn a pretty good point exchange for the money you spend, with great rewards and benefits but not without a catch. Depending of the lender, the yearly fee is usually high costing up to $400 or more. And did we mention the percentage rate? Well you’ll soon find out about that eye-popping beauty.

But if status and shopping with attitude is more important, then you’ll love the benefits and won’t mind paying high annual fees or high percentage rates. You may even find that the benefits outweigh the negatives. But that’s for you to decide. See here for more information on general rewards credit cards.

Who offers black credit cards in Australia?

Let’s just say there’s a bunch of lenders out there that want to satisfy your need to uphold the most prestigious way of paying for your cup of coffee. Or a sleek sports coupe. Your call! Compare just some of the different black card options below (NB: that some of the rates and fees may have changed since the time of writing, click on the highlighted product for today’s rates:

Lender	Annual fee	Rate p.a.	Points per $	Sign-up bonus points
Westpac Altitude Black	$395	19.99%	up to 3	40,000 (only after you make your first purchase)
Citi Prestige Card	$700	20.74%	2	70,000
ANZ Frequent Flyer	$0 (for the first year, $425 after that)	19.99%	1.5	75,000 (when you spend $7,500 within the first 3 months)
ANZ Rewards Black Credit Card	$375	18.79%	up to 3	75,000 (when you spend $7,500 within the first 3 months)
CBA Diamond	$450	20.24%	up to 3	Nil. However you can earn up to 1 million points every year.

How to get the most out of your black card

The premium benefits that naturally go hand in hand with owning a prestigious black credit card has a lot to do with the luscious perks on the side. Suppose you have one, it would suggest that:

a) you earn a lot and

b) you spend a lot.

In fact, in most cases, you can’t actually obtain a black credit card unless you can prove either or both of these. Shiny cards for shiny egos? We did not say that! Alright, we’re just a tad jealous.

If you’re seriously considering signing up for one of these majestic cards, at least you know that you’ll be privy to perks and VIP treatment. So go on. Shower yourself in all its glory and take advantage of all on offer. If you can bare it!

Remember, the extravagant whims you enjoy will depend on the lender and what lavish perks they’re dishing alongside their black credit card. They don’t all offer the same things. Here’s just some of what to expect:

• Reward point promotions that may double or triple your points
• Use points to upgrade flight seating, buy high-end products and or upgrade your stay at participating hotel
• free night’s accommodation at lavish hotels, once or twice a year, depending on how much you spend.
• Unlimited VIP airport lounge access
• Late checkout at your participating luxe hotel
• Depending on where you stay, personal concierge to help with dinner and entertainment reservations
• Access to travel experts, planners including event planners
• Personal shopping assistant at high-end boutiques
• Some instances complimentary insurance and increased warranties on goods
• Hard to get reservations and tickets at popular restaurants, sporting and music events
• Discounts for a selection of elite goods and services.

Pros and cons of using a black credit card

It’s the little black card with big benefits. The initial reward bonus when you first sign up is extraordinary generous to begin with. But the points you score as you spend money aren’t very high we’ve noticed. From nosing around, Mozo saw that the maximum points per dollar was 3. And the average points scored per dollar is about 1.75. Not so great if you’re forking out a whole lot of money each year just to own a prestigious piece of plastic. Although it is nice and shiny. Hmmm.

Pros	Cons
If you’re an avid traveller, you’ll enjoy the frequent flyer points. Keep an eye out for promotions when travelling as you could score up to 5 points for every dollar you spend. Not bad for regular jetsetters.	Point based rewards may encourage you to spend more than you intended, leaving you with more things you didn’t need in the first place. A consumerist’s heaven.
Some of the promotions are incredible. You’ll find that some have handsome cashbacks, free flights or free hotel rooms with companies your friends will covet. These promos are usually capped within a certain time frame so let’s hope your busy schedule is flexible.	After a balance transfer term is over, so is the honeymoon period. This means that you’re likely to be charged an incredibly high interest rate for the balance of your debt and any other expenses you make on top. Miss a payment because you just can’t financially cope this month? Will likely result in a strike on your credit file.
You can exchange points for tickets to exclusive events as well as luxe items from high-end stores, hotel and flight upgrades and more.	Some lenders or providers of black credit cards require you to pay off your balance each month. So if you plan on spending big, make sure you’re equipped to pay big or it ain’t worth the trauma. Imagine stressing about making your repayments in exchange for awesome points?
Usually no point caps, which means you can earn as many points as you wish. Why stop now?	High annual fee. Some black credit cards are super high. Weigh up which one will satisfy your wallet before you choose with your ego.
Various insurances may be included, or upgraded. Make an enquiry as to what this means for you so that you know you’re covered for the right insurance every time.	Some black credit cards are by invitation only. This will be equated by how much you earn and how much you spend before qualifying for an invite into the ‘millionaire’s club’, as some call it.
Balance transfers on many black credit cards offer low or zero interest for up to 6 months terms. As long as you take the reins on your spending, it’s a great way to manage debt for a good chunk of the year.	Carrying a credit card with an incredibly higher credit limit or limitless card may negatively affect your borrowing power.

Black Credit Card Tip 101

Have you obtained a black credit card for the points alone? Then it’s a good idea to keep track of your spending. Mozo recommends that you don’t wait till the end of the month to repay your expenses, but asap. Transferring funds from your savings to your black credit card will eliminate the chances of accruing unnecessary and very expensive debt. Why throw away $300 in interest when you could easily enjoy that with your partner at your favourite fancy restaurant. Now that’s money well saved and spent.

How to compare elite credit cards

Wondering how other prestige credit cards stack up? Platinum or Gold credit cards were some of the first premium cards globally available. And the good news is, they’re still around. The Black credit card concept is still fairly new, so it may pay to check out all your options before signing your spending away. Use Mozo’s Rewards Revealer tool to find out the best card for your spending level or compare credit card offers here.