There are a handful of important factors that you should look at and consider when you’re looking at platinum credit cards and comparing which one might be right for you.
Fees
It's important to be mindful of the annual fees associated with platinum credit cards, as they tend to be higher compared to standard credit cards. The total fees on a platinum credit card could range from $100 to over $1,000. Make sure to assess whether the benefits and perks offered by the card outweigh the fees you'll be paying.
Maximum credit limit
A key benefit of getting a platinum credit card is that it can have a higher credit limit than most standard credit cards. This credit limit can be in the hundreds of thousands, depending on your financial situation and what the card issuer approves for you. However, just because you have been approved for a higher credit limit doesn’t mean you should accept it. A higher credit limit leaves the temptation to spend more, build debt and therefore get into an uncomfortable financial situation. Ensure you only accept a credit limit that won’t tempt you to overextend yourself financially and therefore end up in a bad financial position. Try to get a credit limit that will help support your needs and you feel you can repay without getting into financial stress. This may be a figure you can afford to repay in full each month to avoid carrying a balance on your card and accumulating more debt.
Interest rate
Platinum credit cards often offer longer interest-free periods. However, this longer interest-free period may also come with a higher interest rate which is significantly higher than standard credit cards. If you don’t think you’ll be able to repay your balance within the interest-free period and carry a balance on your card, a low rate credit card may suit you better.
Rewards
Platinum credit cards come with a range of rewards, so ensure you select a credit card that provides benefits relevant to your lifestyle. For example, if you travel a lot, you might get a lot of value from the free travel insurance and rental car benefits. Don’t forget to check the terms and conditions of any benefits or rewards before applying for a platinum credit card. Some rewards or benefits may require you to spend a significant amount each month before you can access them. Also, always ensure the rewards align with your spending habits.
By comparing these factors among different platinum credit cards, you can make an informed decision that aligns with your financial goals and needs.