The Accessibility Of Platinum Credit Cards
A Platinum credit card carries with it a certain amount of kudos. One flash of its metallic sheen and people around you make instant assumptions about your lifestyle, your spending habits and your status in life. There will be assumptions that you have worked your way up through the strata of silver and gold and are now part of an exclusive and elusive set that enjoys perks and benefits in accordance with their wealth. But what is the truth behind the matter? Is every Platinum credit card user someone who owns a yacht and can afford to holiday on a regular basis in the Maldives?
In fact, while it’s generally thought that earnings is the main guide for lenders when awarding platinum credit cards, in fact they’re generally offered to consumers with a good credit rating or, in some instances, consumers with no credit score at all. The latter is because, at the time of application, there would be no previous debt issues although there is no display of the consumer’s ability to manage credit; your credit rating actually improves if you borrow money and meet the repayments on time, rather than having a credit-free history.
In general, benefits associated with this type of credit card can be: a complete absence of an annual fee, lower interest rates, higher credit limits and a more frequent increase to that limit, travel accident insurance, a fraud protection service, cash-back deals, and free air miles.
But what are the criteria that’ll grant you to apply for or be offered a platinum credit card? Of course, it varies from lender to lender but, generally speaking, an existing customer of the credit card company would be expected to have a monthly income of at least 15,000 – 25,000 – making it much more accessible than you might expect. Some banks will offer this service if you’ve savings in excess of 5,000, a loan with that bank in the region of 5,000 or more or a mortgage with them at around 50,000 or more. Houses, automobiles, life insurance policies and pensions are also things that can secure you a platinum credit card deal. Barclays bank currently has over 600,000 Platinum Banking customers; 40% of this number earns less than 20,000 per year.
To reap the benefits of your platinum card, you need to be a consumer with good credit, who regularly uses the card on day-to-day purchases, with the occasional ‘big spend’ thrown in. That way, you can take advantage of the discounts and deals available and also use the benefits of interest-free borrowing to help you with the odd extravagance. But it is then important that you pay the balance off – in full – each month. One missed payment can impact negatively on your credit rating and affect your potential for borrowing in the future.
The competition for custom isn’t solely the concern of banks; other institutions, such as supermarkets are also offering platinum credit cards that also have loyalty reward schemes tied into them. Sainsbury’s, for example, gives you interest-free shopping for 10 months, no annual or balance transfer fees, optional protection for repayments if you are unable to work, optional protection against card loss or theft and emergency medical and legal assistance abroad. As with all credit cards, the APR and interest rates that are on offer are dependant on an independent verification of a customer’s credit and repayment history.
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