What are the differences between silver, gold and platinum credit cards?

Status: Jealous of others

Undoubtedly, silver credit cards, gold credit cards, and above all, platinum credit cards give a sense of status to the cardholder, similar to a luxury car, yacht, expensive clothes, jewelry, and other heavy items.

There’s nothing wrong with that, but one wonders if that’s reason enough to request a financial product or pay a lot more money for it. Unless there are other useful features, or, as we want to point out in this article, there is a tendency to reduce the difference in real financial benefits between these products, we see no reason to pay excessive production costs and service fees just because the color or material of the loan cards.

Credit limit

Early in the history of credit cards, the main difference between these credit cards was that the amount of money you could spend with them varied significantly. Platinum credit cards had the same credit limit as classic credit cards, gold credit cards had higher limits, and platinum credit cards claimed to have no limits at all (we say there were no limits and there are no limits). However, to be honest, the credit limit is high enough for this statement to be true.).

However, recently the limits of platinum and gold cards have become so close that the difference can be considered insignificant. So there doesn’t seem to be any reason to pay higher fees for gold cards if that’s the only difference between the two. Moreover, as both limits increase to significant amounts, platinum credit cards and their no-limit feature become less attractive.

Revenue implications

Because there were income requirements to qualify for these credit cards, being a silver credit card holder meant you had a certain income, being a gold credit card holder meant your income was higher, and so on. This can be an easy way for others to find out how much you’ve earned without telling them. Store card accounts could be opened without credit checks, etc.

However, the differences in qualification requirements have also been narrowed, and even platinum credit cards, which used to be an invitation-only type of credit card, are now offered to anyone who can qualify and are less difficult to qualify for than to apply for. for gold credit card.

Membership fees

The only major difference between these credit cards is the membership fees, renewal fees, origination fees, etc. So, as stated above, it appears that you are paying higher amounts just to make it clear that you can pay higher amounts. The benefits of having a higher class credit card seemed to have disappeared and thus it would be wise to think carefully before accepting an offer from a bank that includes this type of card.

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