Gold rewards cards

Congrats on your decision to join the rewards credit card club (or at least, resolving to switch providers)! During your search for an ideal piece of plastic online, you’ve probably stumbled across the term “gold” credit cards.

But what exactly is this card type and is it right for you? Read on as we help you decide whether a gold rewards card is worthy of your wallet.

Gold credit cards in a nutshell: Gold cards surpass basic credit cards in features, making them a great first step on the rewards card ladder. They sit under platinum, black and diamond cards, so while you'll pay a lower annual fee, you won’t have access to as many rewards perks.

Sure signs you need a gold rewards card

When it comes to rewards credit cards, there’s no such thing as a “one size fits all” piece of plastic. Thankfully with over 100 rewards cards in the market, you’re bound to find one that ticks all the boxes. Here are 3 signs that a gold credit card could be for you:

1. You’re getting bored. Perhaps that standard piece of plastic in your wallet just isn’t cutting it. Sure, you may have convenient access to credit, but shouldn’t you be rewarded for paying your credit card bills in full and on time?

2. You aren't ready for a serious rewards card. Going for a gold credit card is a good way to dip your toes into the rewards card world, as you'll get the benefits of some rewards and freebies, without the high price tag of a steep annual fee that often comes with more premium diamond and black cards.

3. You need more financial flexibility. Is your credit limit struggling to cover the purchases you make in between paychecks? Or perhaps you want the option to access more funds in an emergency scenario.

If you found these signs relatable, it’s probably time you switched over to a new gold card. See below for the merits of getting one.

The value in going for gold

Credit card providers pack gold rewards cards with benefits and features such as....

  • Lower annual fees. The good news is, that gold rewards card annual fees sit at the lowest price point compared to more premium rewards card types (like platinum cards for instance). That means less money out of your hip pocket when you first sign on for the card and every anniversary after that.
  • Bumper benefits. Gold credit cards allow you to earn points so you can redeem them on a range of fun stuff from flight upgrades to supermarket gift cards. Assuming you choose an appropriate card for your yearly spend, those points redemption opportunities could make the annual fee a true bargain.
  • Freebies. Providers will often stuff gold cards with free features totally separate from the points you earn. Expect to receive complimentary travel insurance, extended warranties on eligible products and purchase protection once you sign that dotted line.

Markers of a top value gold rewards card

- Low purchase rate. Even the most diligent cardholder can forget to pay their credit card bill. Pick a card with the lowest purchase rate relative to all the other features you’re after, to minimise the sting if you wind up falling behind on payments.

- High number of interest free days. Rewards cards offer between 44 to 55 days of zero interest, so aim for a card boasting the most for extra leeway before the interest rate kicks in.

- Plenty of opportunities to earn points. Look for bonus point offers, a large network of loyalty program partners and attractive earn rate (simply meaning the number of points you’ll earn for every dollar spent using your card).

Note: Remember, gold cards aren’t the most lucrative credit options in the market when it comes to rewards. Keep your rewards expectations realistic, unless you’re willing to opt for a premium card instead.

- Affordable annual fee. Something to consider when comparing gold rewards cards is the yearly fee, which you’ll be required to pay upfront and every 12 months after that. The lower it is, the less rewards you’ll be entitled to, so make sure it’s the right price for your needs.

- Generous credit limit available. Ever applied for a credit card before? If you answered yes, then you’ll know that providers factor in credit history and income to decide whether to approve you and how much to put on the card. Gold cards usually offer higher credit limits than cards with zero rewards, which may suit your financial situation if you’re looking for the financial freedom that comes with having a higher credit limit.

Choosing your card

Now you have a fair idea of what gold rewards cards are all about, it’s time to put your knowledge to the test and compare away at the rewards credit card hub.

When you start your search, we recommend extending your picks beyond just gold cards, as there are plenty of other rewards cards offering the same level of perks, with a low annual fee attached.

Mozo’s nifty tip: Trim all unnecessary cards in the market using our rewards revealer tool. Simply type in your annual spend and favourite features, then hit “get results”.