What are gold credit cards and platinum credit cards?

Gold and platinum credit cards are exclusive types of cards that are packed full of special credit account features - features that are simply not available on standard types. To be eligible, gold and platinum credit cards applicants must meet a strict list of mainly financial criteria. These criteria normally involve applicants being in receipt of a minimum high-level income, and having an exemplary credit record. Most issuers of gold and platinum credit cards also require applicants to already hold at least one mainstream card in their name.

Gold credit cards

Gold cards are the lower ranked of the two types. A qualifying annual income of around £20,000 - £25,000 is often set for these, and applicants must be aged 18 or over. Besides the features on standard cards that may include 0% on balance transfers for a limited period and 0% on purchases for a limited period, gold credit cards often come with extras that include free purchase protection and free extended warranties.

Free purchase protection for purchases bought on the credit cards. Typically, free insurance that covers accidental damage, theft or loss of the item for between 3 and 6 months following purchase is offered as standard on these offers. Many companies also extend this cover to additional authorised cardholders.

Free extended warranties are another useful insurance offered on many gold credit cards. Here, the card companies add one further year to the manufacturer's warranty on all goods purchased. This protection on gold customers normally covers electrical and mechanical breakdown, as well as accidental damage resulting in breakdown.

Platinum credit cards

Platinum cards are the ultimate in prestige credit cards. Companies often require applicants for their platinum cards to have a minimum annual income of £25,000 - £35,000, and again to have an impeccable credit history. Several s companies stipulate a minimum applicant age of 25 for their platinum offers too.

Platinum cards possess all the features of gold credit cards as standard. Additionally, offer further perks such as air miles, discounted or free travel insurance, 24/7 online access to your credit account and even discounts on brochure priced holidays.

Issuers are also willing to provide applicants with substantial credit limits. Some guarantee a minimum credit limit of £5,000.

Both of these card types are good for users who spend frequently and travel often. If you are more concerned about securing a low standard APR than collecting air miles or an extra year's warranty on purchased good, gold or platinum credit cards may not be for you.