Platinum credit cards

Platinum credit cards can offer higher credit limits and greater benefits and perks than standard credit cards. But the trade-off is they often also have higher interest rates and fees.

What is a platinum credit card?

A platinum credit card is a type of premium credit card that offers more benefits and perks than a standard credit card. For example, it may offer higher credit limits, rewards points, complimentary insurances and airport lounge access. Because of this, platinum credit cards tend to have higher interest rates, annual fees and minimum income requirements compared to less premium cards.

What is the highest credit card colour?

Platinum credit cards typically offer higher benefits and features than gold and silver credit cards. However, they generally sit below black, diamond and titanium credit cards.

Nearly half of the credit card providers on Canstar’s database have credit cards with a ‘colour’ based name, which indicates its level of rewards or special features. However, providers aren’t as strict with their credit card colour hierarchy as they were previously.

How do I qualify for a platinum credit card?

It depends on the specific credit card. But platinum credit cards typically have stricter eligibility criteria than standard credit cards. This includes higher minimum income requirements.

Platinum credit cards have an income requirement of $52,600 on average, based on credit cards on Canstar’s database. But they can go as high as $150,000 for some platinum cards.

To qualify for any credit card, you will usually need to be:

• at least 18 years old
• an Australian citizen, permanent resident or hold an eligible visa
• have a good credit history
• meet any minimum income requirements specified.

What are the pros and cons of platinum credit cards?

A platinum credit card can offer benefits like high credit limits, rewards, complimentary insurances and other perks. But they can also have higher annual fees and interest rates, as well as stricter eligibility criteria compared to less premium cards.

Pros

• Higher credit limits. Platinum credit cards have maximum credit limits ranging from $20,000 to $100,000, based on cards on Canstar’s database.
• Rewards. Many platinum credit cards come with a rewards program where you can earn reward points per dollar spent.
• Complimentary insurances. Platinum credit cards may offer complimentary insurances such as travel insurance, purchase protection insurance and extended warranty insurance.
• Other perks. Platinum credit cards can come with benefits like airport lounge access or travel credits.

Cons

• Higher annual fees. Annual fees are around $200 on average, but can be as high as $700, based on platinum credit cards on Canstar’s database at the time of writing.
• Higher interest rates. Platinum credit cards have an average purchase rate of 19.56%, based on cards on Canstar’s database at the time of writing. In comparison, Canstar data suggests non-rewards credit cards have an average purchase rate of around 13.82%.
• Stricter eligibility criteria. Platinum credit cards may have higher minimum income requirements than less premium cards.

Is a platinum credit card right for me?

Platinum credit cards can come with greater benefits and perks, but they also charge higher annual fees and interest rates than some less premium cards. So, they may suit you if:

• You pay your balance off in full each month. Platinum credit cards typically have higher interest rates than standard credit cards. So if you are likely to carry debt on your card, the interest you are charged will likely outweigh any benefits you can get with the card. Your repayment history can also have an impact on your credit score.
• Use your credit card frequently. You may get more use out of the higher credit limit available, provided you can pay the balance off on time. You may also benefit from the ability to earn reward points on eligible purchases.
• Travel frequently. Platinum cards often offer complimentary travel insurance and may offer other perks like free lounge access or travel credits. This could suit people who travel frequently and help justify the higher annual cost.