Gold Credit Cards

Following the initial release of standard silver credits on the mid-1950s, credit cards issues felt they needed a way in which to entice customers of a high net value who wanted to be associated with a credit card that reflect their financial standing. The introduction of gold credit cards was the answer and a hierarchy of credit cards was firmly established, which is still in existence today.

Advantages of having gold credit cards

The advantages that gold credit cards afford card members over other types of cards include:

• higher cash withdrawal limits
• higher credit limits, as you need to have more income to apply for a gold card your credit limit should reflect this
• 0% interest for between 6 – 9 months when transferring your account balance from one credit provider to another
• better rewards promotion packages; for example a higher percentage rate cash back return with cash back credit cards or more airmiles with airmile credit cards
• better travel perks – for example, you may be entitled to automatic upgrades when travelling
• more prestige, which in turns means retailers are more willing to be attentive to you.

Disadvantages of having gold credit cards

The disadvantages that gold credit cards afford card members over other types of cards include:

• higher annual membership fees (if any)
• higher threshold salary which you need to earn if you want to apply
• potentially the same credit limit as other credit cards because credit limits are not only set on your income level and ability to repay the balance of your credit card, but also set on your previous credit history. Therefore, even if you earn more, if you have not been able to manage your debt financing correctly in the past, there is a chance that the limit you are given is going to be lower than someone who has managed their debt well and has a standard credit card

Although holders of gold credit card feel that they confer a higher status on them than cardholders of standard silver credit cards, the fact remains that with the qualifying income bracket for gold cards having changed little over the last 20 years, almost anyone earning an average salary can apply for a gold credit card these days. For this reason, many financially astute people feel that gold credit cards have all of the same functions as standard credit cards, but that members are being charged significantly more for the privilege of being a member than standard credit card members.

Having said that, if the image you portray is important to you, and if you would like people to know that you are more financially secure than the average man on the street, even if this doesn’t happen to be the reality of the situation, then applying for gold credit cards is certainly still an attractive option available to you in the world of credit cards!

More information:

• Credit Card Types
  Credit cards have evolved from their early days into flexible financial tools for most types of spenders – and savers. But with so many types of credit cards on offer it can be somewhat overwhelming.