What is a Platinum Credit Card?

Platinum credit cards have always carried a special cachet among people who use credit cards. They're often seen as the ultimate proof of credit goodness, and those who carry platinum credit cards think of themselves as members of an elite club. And in a way, they are.

Platinum credit cards are generally the top range credit card in any line - the ones that offer the lowest interest rates, the best loyalty programme or some combination of the two. Most often, platinum credit cards are granted to those credit card applicants who have excellent credit. Aside from that, though, platinum credit cards carry different benefits and advantages that vary from issuer to issuer.

Credit card companies generally offer many different credit card products, each aimed at a different segment of the market. Platinum credit cards generally are aimed squarely at those who have enough disposable income to spend freely and enough responsibility to keep their accounts up to date. If you've been approved for a platinum credit card, you're to be commended for keeping up on your accounts and earning a few bonuses for doing so.

Some of the advantages that platinum credit cards may offer include:

• Generally, platinum credit cards carry lower interest rates than other credit cards offered by the same company.
• Most often, you'll earn reward points or cash back at a higher rate on platinum credit cards than on other credit cards from the same company.
• Platinum credit cards may trigger special rates or savings at specific merchants, especially if they are linked with the hospitality industry.
• Access to special platinum club only offers and rewards that are offered as incentives to use platinum credit cards. These may include special music events, sports prizes and holidays that are reserved for platinum credit cards holders only.

While all this may sound rather mag, you'll pay for the extra luxury and benefits with some platinum credit cards, which charge annual membership fees or participation fees. It's important to keep in mind that there's no international standard or regulatory organization overlooking naming standards for credit cards. Anyone issuing credit cards can point to their top range and call them "platinum credit cards".

That's why it's always important to do your research and compare credit cards before you start making applications - and that holds true even if you are "invited to apply". Take the time to go online to one of the excellent credit card comparison sites that allow you to compare credit cards and their benefits side by side. You'll be able to put cards against one another part by part and decide whether and which platinum credit cards are right for you.