After the existence of silver credit cards it was felt that there is a need of gold credit cards also. These cards categorized as platinum, silver and gold cards show nothing but reflects your financial standard. Gold credit card holder is assumed as to have good financial status. 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 provide card members over other kind of cards include:
- Its cash withdrawal limits are higher.
- It provides higher credit limits.
- It provides 0% interest for between 6 ? 9 months when transferring your account balance from one credit provider to another.
- You can get better rewards promotion packages.
- Better travel perks are available ? for example, you may be entitled to automatic upgrades when traveling.
- Carrying a Gold credit card reflects 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:
- A higher annual membership fee is included to afford gold credit card.
- Your income should be high if you want to have gold credit card.
- Credit limits are dependent 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 it is assumed that people having high income can only hold gold credit card but now the eligibility for affording this card has been changed little bit. 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.