In our current society where high regard is placed on prestige, image and personal profile, Platinum Credit Cards are often used as status symbols. This stems from that fact that these cards are only approved for high income consumers with good credit records. Due to these circumstances, a high credit limit is provided, while interest rates may be relatively lower due to the lower credit risk.

Apart from that, Platinum Credit Card holders may be entitled for exclusive retail discounts and free air miles that may not be available for Gold and Standard credit card users. Nevertheless, there are a few considerations that you would need to make before actually applying for a Platinum Credit Card.

High Annual Fees

The platinum card status and higher credit limit do not come without a price, as higher annual fees are applicable for these cards. Indeed, annual fess payable may go as high as a few hundred dollars a year! If this is acceptable, then it may be wise to ensure that you are enjoying reward benefits that are of greater value than a standard credit card.

Increasing Interest Rates

One of the downside of Platinum Credit Cards is that your interest rates can be increased when you only pay the minimum on your outstanding balance or have been making late payments. Interest rates can be increased by as much as 35%, which amounts to a significant value. Apart from that, the minimum payment incurred may also be increased from 2% to 3%, another factor that adds to your cost of using a Platinum Credit Card.

Higher Credit Limits

Platinum Credit Card owners are entitled for higher value in credit limits as compared to Gold and Standard Credit Card owners. In reality, the exact credit limit varies from person to person in accordance to the evaluation done by the credit card company. One of the greatest benefits to having greater credit limits is the convenience of making purchases of greater value with just one card, rather than with a combined credit limit from multiple credit cards.

Not to be confused with Platinum Unsecured Credit Cards

Platinum Unsecured Credit Cards are not really credit cards, but rather shopping cards that can be utilized on specific outlets, or through an online catalogue. The restriction here is that these cards can