Platinum Rewards Cards
When it comes to premium credit cards, platinum cards have trumped gold cards on the market in terms of supreme status. And while platinum is an extremely rare metal the plastic credit card version is more commonly available! Most Australian banks and credit card providers offer platinum rewards credit cards. These cards work just like a standard credit card however they have a lot more features and benefits as well as better rates for earning reward points.
Here’s our 101 guide on all you need to know about platinum rewards cards.
Who does a platinum rewards credit card suit?
If you’re looking for a little status in society and don’t mind flashing a card around to jump a queue or receive first class service then a platinum rewards card would sit well in your wallet!Platinum rewards cards are tailored towards high income earners who like to spend up big on their credit card. It also suits people who like to travel frequently be it for business or pleasure. Platinum rewards cards are often directly linked to a frequent flyer program such as Qantas Frequent Flyer or Velocity Frequent Flyer.
A platinum card will also only suit someone who is going to pay off his or her credit card bill in full and on time each month. If not, the interest rates and late payment fee will outweigh the benefits of the card. To avoid coughing up these avoidable fees and charges it’s crucial to set up an automatic payment plan. Read more on avoiding credit card fees right here!
Criteria to be eligible for a platinum rewards card
As you’ve read above these cards don’t suit everyone. So let’s just say it’s not easy to get your hands on a shiny piece of platinum plastic. There are fairly strict requirements that must be met in order to be approved for a platinum rewards card. These include:
- Minimum annual income of around $50,000
- A perfect or near perfect credit rating
- Must be over 18 years
If you’re considering getting a credit card head over to our guide on applying for a credit card.
Benefits of platinum rewards credit cards
There are plenty of perks to being the owner of a platinum rewards card. So when you can soak up these benefits:
- Accelerated points per dollar deals, so for every dollar you spend on the card you’ll earn more reward points. Head over to our guide on reward programs it includes tips on how to earn maximum reward points
- You don’t usually have a limit on the number of reward points you can earn in a year or even a month
- Often with platinum rewards credit cards your points will not expire but always be sure to check with your provider
- Personalised concierge service
- Complimentary travel insurance
- Greater choice of rewards to redeem your points on
- Exclusive deals for dining and travel
Platinum reward cards vs standard credit card
|Platinum Card||Standard Card|
|Annual Fee||The annual fee of platinum cards can be pretty hefty. For example, the American Express Velocity Platinum Card has an annual fee of $349.||A standard credit card has a relatively low annual fee and you can even get your hands on a no fee credit card which doesn’t have an annual fee.|
| Interest Rates |
|The ongoing purchase interest rate of platinum cards tends to be much higher than on standard credit cards. It’s usually between 19-22%. |
A lot of platinum cards include complimentary travel insurance however you must meet a certain eligibility criteria.
Not only do platinum cards have more options when it comes to rewards but you can also accrue points quicker than standard cards. The points per dollar earning rate is usually higher (one point or more per dollar spent) and you may get more bonus points on your purchases.
|Interest rates on a standard credit card are a lot lower, around 14% per annum or less. Compare low interest credit cards here. |
With limited benefits, standard cards do not come with free insurance.There aren’t as many choices when it comes to redeeming reward points. For every dollar spent you will usually earn one point or less.
Compare rewards credit cards with our handy Rewards Revealer tool.
What to consider when comparing platinum credit cards
Interest rates: Take the time to shop around for competitive deals on interest. As we’ve mentioned, providers charge high interest rates on platinum cards compared to other cards. Click the link to compare platinum reward cards.
Airline alliance: If you have a particular preference of airline when it comes to flying then choose a card that is aligned with that airlines’ frequent flyer program. For example, if you’d rather fly with Virgin Australia, find a card that is directly linked with the Velocity Frequent Flyer program such as the American Express Velocity Platinum Card.
Credit limits: Platinum reward cards have a much higher credit limit compared to standard cards. As these cards are suited to big spenders find one that has a high credit limit to match.
Personal interests: Think about your lifestyle, hobbies and interests and that will help you in deciding which platinum card you will get the most value from.Compare platinum rewards cards to find one that fits your interests.
Platinum card fees:
- Annual fee: The annual fee of platinum cards can range from $100 up to as much as $450. Make sure you choose a card where the annual fee doesn’t cost you more than what you’ll receive in rewards value.
- Cash advance fee: Avoid using your platinum rewards credit card to withdraw money from an ATM if not you’ll be slapped with a cash advance fee. Your provider will charge a withdrawal fee of around 3% on the amount you take out plus you will be charged interest on that money which can be as high as 20%.
- Currency conversion fee: As a lot of platinum cardholders are frequent travelers it’s important to know that when you use your credit card overseas or when you shop at an international online store your provider will charge you a currency conversion fee. The standard foreign exchange fee is around 3% of the Australian dollar amount.
- Late payment fee: Fail to pay the minimum amount owing on your bill by the due date and you’ll be hit with a late payment fee of around $30. This fee can be easily avoided by setting up a direct debt or automatic transfer.
- Reward membership fee: There may be a fee for joining or becoming a member of a reward program such as frequent flyer. However check with your provider as they may waive this membership fee.