Wallet Envy
If you have ever owned a gold, platinum, or some other upgraded credit card then you know that the issuer takes great care to make sure the card looks different from other credit cards. It might actually be gold or platinum in color, or it may actually have the words gold card or platinum card emblazed across the front of the card. A card like this tells people, “Make no mistake about it…I spend a lot of money, keep up with my payments, and have a fantastically impressive available credit line to prove it!”
Or does it?
Gold and platinum cards - and sometimes black cards - are supposed to be offered to the best customers. These customers have admirable credit scores and incomes that can support a high credit limit. There is supposed to be something special about these credit cards, whether it’s a lower interest rate, better perks, or an increased spending limit.
The truth of the matter is that sometimes a gold or platinum card isn’t truly the best card. Some of these cards feature higher interest rates and annual fees than their classic counterparts, but some customers get so excited about the prospect of having an upgraded credit card that they never actually read the terms and conditions before accepting the card.
Some gold and platinum cards come with great features and a more generous spending limit, but be sure to take a look at the fees involved. Annual fees are common among premium credit cards, and the issuers justify this by adding extra features to the cards. Whether these features are worth the extra costs are up to you, but make sure you understand everything before you sign anything.
Remember that there is no absolute rule about what can be considered a premium credit card. Any issuer can paste a platinum face to a credit card and dub it platinum. It’s up to you to not get blinded by the prospect of having an attractive credit card in your wallet and instead figure out exactly what benefits the card has. You may find that the credit cards you already have in your wallet are actually better than the card you’re being offered as an “upgrade.”
June 9th, 2008 at 7:16 pm
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