Platinum credit cards are some of the highest prestige credit cards. They are often sold as being “beyond gold”. Most credit card processors offer these cards and this includes VISA, MasterCard and American Express. However only some credit card issuers offer these cards and these are usually banks rather than credit unions or building societies.
Although platinum cards have higher levels of service, more perks and a higher credit limit but they also tend to have higher interest rates and annual fees. They are restrictive in who they allow to become card holders, often only allowing people with a good credit rating and a high income to hold the card.
The first platinum card was brought out by American Express in the 1980s. American Express had originally brought out the Gold Card in the 1960s as an exclusive, invitation only card but by the 1980s it had become a lot more common and many more people were able to apply for a gold card. It was felt that the brand had become devalued.
Platinum cards at first were invitation only and quite restricted. Unlike the gold cards the American Express platinum card also offered what was known as a concierge service, which was a personal assistant available over the phone.
Over time platinum cards have stopped being invitation only. Invitation only “black cards” now have some of this cachet. It is now possible to apply for a platinum credit card, but it is also possible to be refused.
Platinum cards maintain a higher standard of credit rating and income level. This weakened before the credit crunch but shows no signs of weakening now. In return platinum cards have higher credit limits.
Platinum cards, like gold cards offer a wide range of free insurance on goods brought on the card. This can include travel insurance on domestic tickets, medical insurance on overseas tickets, extended warranties and purchase protection insurance for a couple of months after the card has brought a product.
The concierge services tend to mark the platinum cards out. These phone based personal assistants can do a number of mundane but time consuming tasks such as ordering tickets or buying groceries.
The cards also operate personalised rewards program which mean that rewards can be tailored by trading rewards points for experiences, and so letting the card holder choose the rewards that they want to receive.
