The Benefits of Gold and Platinum Credit Cards

When you have an ordinary credit card, there is usually no annual fee attached. While the upgraded credit cards do have an annual fee, the benefits of gold and platinum credit cards far outweigh the cost of paying this fee.

The fact that you qualify for and receive one of these credit cards means that you have a higher income and that you have a good credit rating so credit card companies feel reasonably safe in assuming that you will repay the charges. These cards also allow you a higher credit limit than regular credit cards, sometimes as high as £25,000 or £50,000.

With a gold or platinum credit card some of the benefits you can enjoy include travel insurance on your flights when you book them using the card and you also have insurance in case you get sick and need medical attention when in another country.

Many hotels and resorts offer savings in cheaper prices when you book using a certain brand name of credit card in gold or platinum depending on the arrangement that they have with the credit card company. Also if you purchase some household appliances using your credit card, the company will allow you to add extended warranty at no extra cost.

With most credit cards you will not have to pay any interest if you repay the full amount of the balance owing by the payment due date that is shown on the statement. However, with a gold or platinum credit card, you do have to make a monthly payment, but you have 59 days interest free from the date of your purchase so that if you pay that off, you won’t pay any interest on your purchase.

Although these credit cards often have a low introductory rate for a specified period of time, that low rate continues after that date whenever you transfer balances from other bills or credit cards to your gold or platinum credit card account.

Thus you can save money in this way by paying a lower interest rate, especially if you transfer the balance from a store credit card to the gold or platinum one. Also the interest rate charged on cash advances is not the same as that charged for purchases. In most cases you pay a fee for using the credit card in this manner.

With gold and platinum credit cards you also have the opportunity to enjoy different kinds of rewards, such as Air Miles. You receive one air mile for every dollar that you spend, which does add up if you tend to buy everything by credit card and then pay off the balance at the end of the month. In this way, your gold or platinum credit card can help you get a free flight to some exotic location that you otherwise would not be able to afford.

You do have to be careful when using these cards because of the higher credit limits. It is something that you have to watch so that you don’t max out the card and find yourself in financial difficulty.