How Do Platinum Credit Cards Work?

Platinum Credit Card Best Buys Platinum Credit Card FAQ's Have a question? Send in your question and we'll do all we can to help answer it. Where appropriate user questions will be added to the FAQ's for future use. Most recent questions: How much do I need to earn to get a platinum credit card? What's the difference between a classic and a platinum credit card? More frequently asked questions »

Platinum credit cards offer cardholders prestige benefits for having a good credit record and a higher band income.

Platinum credit cards can bring you increased purchasing power with higher credit limits and a range of additional services to look after those purchases as well as your money and even yourself too!

What do platinum credit cards offer?

Platinum credit cards offer superior customer benefits and features to cardholders. These prestige services can include increased purchasing power, added purchase security, improved protection against fraud and additional services when traveling abroad.

Platinum credit cards offer varying prestige benefits and features. These are some of the main platinum services offered:

1. Increased purchasing power, with higher credit limits.
2. Added purchase securities, with automatic insurance cover on purchases and refused refunds, extended warranties on household appliances and price match guarantees.
3. Improved fraud protection, with fraud guarantees including online fraud, active fraud monitoring services and Identity theft protection.
4. Additional travel services, with travel insurances, emergency assistance abroad and worldwide cash and card replacement services.

- Increased purchasing power
Platinum credit cards often offer higher maximum credit limits, allowing people with a good to excellent credit rating the ability to borrow more money on credit.

Having access to an increased credit limit can offer increased purchasing power - enabling cardholders to buy expensive items on credit.

- Added purchase security
Wanting increased purchasing power to buy larger items comes hand-in-hand with wanting additional cover and security when purchasing expensive goods.

Many platinum credit cards offer added purchase security over and above the standard securities paying by credit card offers.

Using a credit card to make a purchase is always a much securer way of buying goods than by paying with cash or a debit card.

Platinum credit cards extend this security by offering additional protection in the form of free insurance policies on the goods you buy with the card.

Many platinum credit cards automatically insure items you buy with purchase protection insurance - covering eligible items against accidental damage, theft and loss for up to 3 months.

Some platinum credit cards also offer protection on the actual purchase of the item, including refund protection if a retailer refuses to refund an eligible purchase and price match guarantees - refunding the difference if you find an item cheaper elsewhere.

Buying household appliances with a platinum credit card can also bring benefits two years down the line - with some platinum credit cards offering free extended warranties for an extra year on top of the manufacturer's standard 1-year warranty.

- Improved fraud protection
Many platinum credit cards offer improved fraud protection in the form of fraud guarantees.

Fraud guarantees state that the credit card issuer will not hold you liable for any fraudulent use of your platinum credit card - and fraudulent transactions will therefore be refunded in full to your account.

Fraud guarantees are often offered for cover when using your platinum credit card on the Internet - where your platinum card account details are more vulnerable to theft and misuse.

The improved fraud protection platinum credit cards offer can also include active fraud monitoring services, where the issuing bank or building society will look out for any suspicious transactions on your account and get in touch with you to verify them.

Some platinum credit cards even go so far as to offer protection if your identity is stolen and misused, for example if a fraudster uses your name and address to open a credit account. These identity theft protection services will help to restore your good name and good credit record if your identity is ever stolen and misused.

- Additional travel services
Unknown to most is that many credit cards offer a range of services when travelling abroad.

Platinum credit cards pack even more travel services into that tiny piece of plastic in your wallet - making them the perfect travelling companion on trips abroad.

Most platinum credit cards come with some form of travel insurance policy - the actual cover does vary though, with some cards only offering accident insurance, whilst others offer full-blown comprehensive insurance with winter sports cover included too!

Insurance policies are also sometimes offered for travel inconvenience too - covering lost luggage and flight delays.

To benefit from these free policies - where offered - you must purchase your trip with your platinum credit card.

Banks and building societies that issue credit cards tend to be pretty massive corporations - and as such, can be very helpful to have on hand if anything goes wrong overseas.

Platinum credit cards often offer emergency medical and legal assistance whilst abroad - simply phoning a telephone number can alert your credit card company to help you out if you ever need it abroad.

Some platinum credit cards also offer emergency cash and / or card replacement services - so they will do their utmost to get you a replacement card if you ever lose yours almost anywhere in the world.

How do platinum credit cards differ from standard credit cards?

In terms of account usability and payment acceptance - platinum credit cards do not differ too much from their standard classic counterparts.

Platinum credit cards are available with Visa, MasterCard or American Express. As such, platinum credit cards are accepted throughout the world by any retailer or company who accepts the aforementioned payment method.

Platinum credit cards do have all the same account terms and conditions as any other credit card, for example you will still have to make at least the minimum monthly repayment on your account - although the rates and fees can differ slightly.

- Lower interest rates
Platinum credit cards generally tend to have lower interest rates than classic credit cards.

This is because platinum credit cards are usually reserved for customers with a good to excellent credit record - so card issuers tend to be more generous with the rates of interest on offer.

- Prestige services
As mentioned in detail above, platinum credit cards offer much improved cardholder services and benefits.

- Rate offers and rewards
There are many introductory rate offers and reward schemes available on platinum credit cards, including 0% balance transfer and / or purchase deals and reward schemes including cash back or air miles.

What do I need to be accepted for a platinum credit card?

Platinum credit cards tend to have stricter approval requirements than gold or classic credit cards.

All platinum credit cards will require you to be aged at least 18 or over, and be U.K. resident.

Some platinum credit cards will also have minimum income requirements and may require applicants to be aged over 21 or 25.

What should I look for when choosing a platinum credit card?

When choosing a platinum credit card these are some of the main points you should consider:

1. What is the typical APR? This is the annual interest rate and any applicable fees or charges that the credit card issuer will charge for using the card.
2. What platinum cardholder benefits are offered? Some platinum credit cards offer additional benefits and services, including:
• Higher credit limits
• Purchase protection
• Refund protection
• Extended warranties
• Fraud guarantees
• Travel accident insurance
• Emergency travel assistance


3. Are there any additional rewards? Some platinum credit cards may also offer additional rewards that you can earn just by using the card. You may be interested in looking for:
• Cash back
• Air miles
• Travel reward points
• Retail reward points
• Charity donations


4. Does it offer a good balance transfer deal? If you’re moving from another credit card that has an outstanding balance, you may want to choose a platinum credit card that offers 0% or low interest rates on transferred balances.
5. What is the credit limit? Platinum credit cards offer increased purchasing power with higher credit limits.
6. Is there an annual fee, and if so, how much is it? Some platinum credit cards charge an annual fee for carrying the card.
7. What is the minimum needed income to quality for the card? Platinum credit cards have a minimum income requirement, which is usually around £25,000 per annum.
8. What is the minimum age requirement? Some platinum credit cards have a minimum age requirement of 21 or 25 years.

Compare platinum credit cards