So you’ve decided it’s time to upgrade to a premium credit card. Do you go for the gold or aim higher with platinum? It’s not an easy choice, especially when both options seem to offer amazing rewards and perks.
Before you get dazzled by luxury travel benefits or big sign-up bonuses, take a step back and think about what really matters to you.
Gold and platinum cards aren’t one-size-fits-all, and the best card for your friend might not be the best for your needs. How often do you travel? Are you a brand loyalist or do you want maximum flexibility?
How much can you afford to spend to earn those rewards? Asking yourself these key questions will help determine if the gold standard is good enough or if the platinum treatment is worth the splurge.
Once you know what you want from a premium card, you can weigh your options confidently and choose the one that will give you the most sparkle for your spending.
Key Differences Between Gold and Platinum Credit Cards
The biggest difference between gold and platinum cards comes down to benefits and fees. Platinum cards typically offer premium benefits but charge higher annual fees, while gold cards provide solid benefits at a lower cost.
Rewards and Perks
Platinum cards usually offer the highest rewards rates and most valuable perks. You can expect things like:
- Airport lounge access (Priority Pass)
- Travel credits for expenses like baggage fees or seat upgrades
- Complimentary hotel room upgrades and amenities
- Access to luxury travel experiences and events
Gold cards still provide good rewards and benefits, just not quite as premium. Benefits may include:
- Higher rewards rates for dining and entertainment
- Travel insurance
- Car rental insurance
- No foreign transaction fees
Fees
Platinum card annual fees are typically $500-$1000 per year due to the premium benefits, while gold cards charge $95-$250. If you can’t take advantage of the additional perks, a platinum card probably isn’t worth the extra cost.
At the end of the day, you need to weigh the rewards and perks that matter most to you versus the annual fee. A platinum card could be great if you frequently travel for business or leisure and will fully utilize the benefits.
For occasional travel and everyday spending, a gold card is probably sufficient at a lower cost. The choice is ultimately up to you and how much luxury you want in your credit card experience!
Pros and Cons of Gold Credit Cards
Gold credit cards are popular for good reason. They offer some nice perks without the high fees of platinum cards.
Lower Annual Fees
Annual fees for gold cards are usually $0 to $150, much less than the $400 to $500 (or more!) charged for platinum cards. If you’re on a budget or don’t want to pay high fees for benefits you won’t use, gold is clearly the better choice.
Reward Rates
Gold cards typically offer 1-3% cash back or the equivalent in travel points on all purchases. While not as high as some platinum cards, this can still add up to hundreds per year in rewards. The rewards you earn often depend on your spending habits and needs.
Travel Perks
Most gold cards provide basic travel coverage like rental car insurance, trip cancelation, and lost baggage. You’ll also get access to travel assistance and concierge services. While not as extensive as platinum, gold travel benefits are enough for most casual travelers.
Flexibility
Gold cards are widely accepted, so you’ll have no problem using them for daily expenses, travel, or large purchases. There are lots of gold cards to choose from, so you can find one that matches your needs.
As with any credit card, make sure you pay the balance in full each month to avoid interest charges. For many people, a gold card strikes the right balance of benefits and costs. Unless you frequently travel internationally or value premium perks, gold cards can be a smart choice.
Pros and Cons of Platinum Credit Cards
Platinum credit cards offer some attractive benefits, but they also come with significant downsides to consider before applying.
Higher Fees
Platinum cards typically charge high annual fees, often $500 or more. The fees are meant to offset the value of the card benefits, like airport lounge access, travel credits, and concierge services.
However, if you won’t use those perks frequently, the high fees may not be worthwhile. Make sure the rewards and benefits match your needs before paying a premium.
Higher Interest Rates
In addition to high annual fees, platinum cards frequently have higher APRs than regular or gold cards. The APR could be over 20% for some platinum cards.
If you tend to carry balances from month to month, the interest charges on a platinum card could end up costing you a lot more than any rewards you earn. Only get a platinum card if you pay the balance in full each billing cycle.
Require Excellent Credit
Platinum credit cards are geared toward consumers with excellent credit (scores of 720 or higher). If your score isn’t in the excellent range, you probably won’t qualify for a platinum card and your application will likely be denied.
Platinum cards receive many applications, so they can be selective in who they approve. Focus on improving your score before applying for a premium rewards card.
While platinum cards offer valuable benefits and a certain status, make sure you go in with realistic expectations about the costs. If managed responsibly, a platinum card can be a rewarding choice.
But for many consumers, a standard gold or cash back card may be a more practical option. Consider your needs and spending habits to determine if a platinum card is right for your situation.
Conclusion
So there you have it, the pros and cons of platinum vs gold credit cards laid out for you to consider. At the end of the day, you need to determine what’s most important to you and choose the card that best fits your needs and spending habits.
If luxury travel perks and higher spending limits are a priority, a platinum card could be worth the high annual fee. But if you’re looking to earn rewards on everyday spending without paying a ton out of pocket each year, a gold card is probably your best bet.
Evaluate your options, do some number crunching, and go with the card that will benefit you the most. Your wallet will thank you for it.