What are platinum credit cards?
Platinum credit cards are premium-level cards that offer a range of exclusive benefits, including higher credit limits, more generous rewards programs, and extra perks such as complimentary travel insurance, concierge services, and access to airport lounges. While they function like standard credit cards, platinum cards typically have higher annual fees and stricter eligibility requirements, catering to higher-income earners who can make the most of the perks available.
Who is eligible for a platinum credit card?
Platinum credit cards in Australia were once considered highly exclusive, but eligibility criteria have become more varied with the wide range of options now available. Key factors to consider include:
- Minimum income. Typically, platinum cards require a minimum income ranging from $35,000 to $100,000, depending on the exclusivity of the card. Even if not explicitly stated, your income will influence your application.
- Employment. A stable income and ongoing employment are generally required to qualify.
- Credit history. You’ll need a strong credit score, with no defaults or late payments, as platinum cards typically have stricter credit requirements than basic cards.
- Other requirements. You must be at least 18 years old and meet residency conditions, which can vary depending on your visa status if you're a temporary resident.
What to consider before applying for a platinum credit card
Before applying for a platinum credit card, it's important to weigh the following factors:
- Annual fees. Platinum cards usually come with higher annual fees than standard credit cards, often ranging from $200 to over $1,400. Bankwest Zero Platinum credit card is the only credit card with no annual fee, but there are other card offers with a low fee for the first year.
- Interest rates. Platinum cards often carry higher interest rates, so they are best suited for individuals who can pay off their balance in full each month to avoid paying substantial interest charges.
- Balance transfer. A platinum credit card with a balance transfer offer to transfer another card balance and get a low or 0% interest rate for a promotional period.
- Rewards and perks. Review the rewards program, including point-earning rates and bonus offers. Platinum cards may offer higher points per dollar spent but also have different terms for earning and redeeming rewards.
- Eligibility criteria. Check whether you meet the income and credit score requirements.
- Additional perks. Consider the non-rewards perks, such as complimentary insurance, purchase protection and warranties, or concierge services, and decide whether they align with your lifestyle.
Expert opinion on choosing a platinum credit card
Andrew Boyd, co-founder of Credit Card Compare shares his expert opinion on choosing a platinum credit card.
If you travel frequently, prioritise cards that offer comprehensive travel insurance, airport lounge access, and no foreign transaction fees. If you are more interested in rewards, look for cards with high points-earning potential and flexible redemption options.
How to maximise the benefits of a platinum credit card
To maximise your platinum credit card benefits:
- Pay off your balance. Always pay your balance in full each month to avoid interest charges. Some platinum cards are best treated similar to a charge card.
- Use rewards strategically. Take advantage of bonus point offers and use points for high-value rewards like flights or cashback.
- Activate complimentary insurances: Make sure to activate travel insurance and other benefits, which usually requires booking travel using the card.
- Take advantage of extras: Use concierge services, airport lounge access, and exclusive event invitations to get the most out of your card.
Expert opinion: What is the mistake people make most often?
David Boyd, the co-founder of Credit Card Compare shares his expert opinion on the most common mistake made by platinum cardholders.
One common mistake is underutilising the perks available with platinum credit cards. Cardholders often overlook travel insurance activation or fail to use their rewards points effectively, meaning they don't maximise the card’s value. Another mistake is carrying a balance on these cards, as the high interest rates can quickly outweigh the benefits if the balance isn't paid in full each month.
Benefits of a platinum credit card
- Higher rewards: Earn more points per dollar compared to standard cards, which can be redeemed for frequent flyer points, gift cards, or merchandise.
- Complimentary travel insurance: Many platinum cards offer free international travel insurance, which can save hundreds of dollars per trip.
- Concierge services: Access to 24/7 concierge services that can assist with travel bookings, event tickets, and more.
- Exclusive perks: Enjoy benefits like airport lounge access, discounts on luxury goods, and invitations to special events.
