Find a platinum card to reward your spending

A platinum credit card is a type of premium credit card that provides cardholders with a range of exclusive benefits and perks. These cards typically come with stricter eligibility criteria and often have higher fees and ongoing costs. Platinum credit cards are well-suited for high-income earners with good credit history and offer a wide range of extras, including higher credit limits, complimentary insurance, concierge services and the ability to earn higher rewards points. If you’re a frequent flyer, you’ll appreciate that some of these cards also provide additional travel benefits, like free travel insurance and airport lounge access.

Since these cards generally offer significantly higher credit limits, they often require a minimum income threshold you’ll need to meet before you apply. It’s always best to compare different credit card options and understand the specific eligibility requirements before applying for one.

The most attractive part of a platinum credit card is the number of benefits and rewards that come with these cards. Some of these offers or rewards include:

• Cashback offers

• Frequent flyer points

• Comprehensive domestic and international travel insurance

• Rental car excess cover

• Access to a 24/7 concierge service

That's not all – you may also receive perks like gift cards, exclusive entertainment discounts, and extended warranty protection on your purchases.

While some of these benefits can also be found with gold credit cards, platinum credit cards also often offer a higher dollar value for these rewards. For instance, you may earn 2 reward points for every $1 you spend on a platinum credit card, compared to just 1 point per $1 on a gold credit card. These points can then be redeemed for cash to help offset your next credit card bill. Alternatively, you could choose to convert them into frequent flyer points or exchange them for other enticing freebies, depending on the rewards program associated with your credit card.

A platinum credit card can provide you with benefits like higher credit limits, complimentary insurance and other perks. However, you’ll find the annual fees and interest rates on these cards to be typically higher than standard credit cards. Here’s a selection of the pros and cons of platinum credit cards:

Anybody who meets the general eligibility criteria for a credit card may submit an application for a platinum credit card. However, it's important to note that platinum credit cards often have additional conditions or eligibility criteria beyond the standard criteria of other credit cards. 

Platinum credit cards are generally offered to individuals with higher income levels and good credit history. Since platinum cards often come with higher fees and ongoing costs, prospective cardholders are expected to have a minimum income level, typically around $60,000 or higher. In addition to the income requirements, having an excellent credit score and a clean credit history are typically a non-negotiable part of qualifying for a platinum credit card.

If you want to apply for a platinum credit card, you should check with individual credit card providers for their specific eligibility requirements. It’s also important to note that meeting the eligibility criteria for a card doesn’t guarantee approval. 

Credit card providers take into account several risk factors when evaluating a credit card application. However, you can enhance your chances of approval by ensuring that you meet the specified eligibility criteria before submitting your application.

Platinum credit cards are some of the most difficult cards to get approval for. Although each card issuer has its own eligibility criteria, you’ll almost always need a good credit score and an income of at least $60,000 per year.

There are also some basic eligibility criteria for applying for credit anywhere, such as being at least 18 years old. When you apply (either online or in person), you’ll also need to produce some or all of the following documents:

• A copy of your driver’s licence

• A copy of your passport or Medicare card

• Proof of income in the form of recent payslips, an ATO tax statement or a letter of employment

• Employer or accountant contact details

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.

The decision of whether you should get a platinum credit card is like all financial decisions, one only you can make after weighing all the aspects of your financial life. Platinum credit cards offer several perks and exclusive rewards to cardholders, but it's important to note that they often come with higher fees and ongoing costs. Depending on how you plan to use your card, the costs may not outweigh the benefits or rewards. Ensure you weigh all these aspects before applying. 

To get the maximum benefit from your platinum credit card, managing your spending responsibly and paying your bill in full each month or within the interest-free period is essential. Once the interest-free period ends, any outstanding balance on your card starts accruing interest, which can accumulate quickly because the interest rates are often much higher, leading to debt accumulation. A higher credit limit on a platinum credit card could make matters worse, as the base debt on which the interest applies might be significantly high for cards with higher credit limits. 

It’s also important to evaluate how much you actually pay for the benefits you receive on your card. To determine the value of rewards offered by different cards, compare how much you have to spend to earn the reward points and all the fees associated with the card. The dollar value of the rewards may also depend on how much you actually spend on the card, as the more you spend, the faster you’re likely to accumulate points. 

Compare different types of cards from different credit providers to find one that matches your spending pattern and provides you with the best value for your money.