Gold Credit Cards- Key Benefits These Cards Offer

Gold credit cards may be the ideal investment option for some individuals. As their name implies, these credit cards are often associated with those with gold standards when it comes to credit ratings. Using one implies you have the highest level of prestige when it comes to buying power. With larger credit limits and lower interest rates, it can be a wise decision to use these credit cards. However, individuals do have to pay larger annual fees in some situations.
Prior to selecting any credit card, including gold cards, it is best to compare the terms and conditions of the card to learn what it offers and what it costs you to use the card. With gold credit cards being available through various lenders, it is important to choose which card is best suited for your specific needs uses. Some cards are simply a better option overall because they offer sizable rewards and more affordable pricing.

What Is It?

Credit card companies will label some credit cards as gold cards. These are distinguished because of the features and benefits they offer. They are often set aside for those borrowers with the highest qualifications and the lowest risk. Many companies offer their best services through gold credit cards though some may offer even larger incentives through platinum credit cards.

Compare Interest Rates

One way in which to compare gold credit cards is to do so using the interest rate charged to you. Most cards do charge an interest rate, which is the fee you agree to pay for borrowing money. However, with most gold cards, these interest rates are significantly lower than what you can expect to pay from a traditional credit card lender. The lower interest rates make these cards more ideal for those who plan to use credit on an ongoing basis. Keep in mind that there is still a range of difference between lenders. Compare your options to find the least expensive choice.

Earn Points and Bonuses

Another way gold credit cards stand out from other offers is the bonus offers and rewards programs they often provide. These will range widely when it comes to lenders, though. Some companies offer highly competitive offers including the ability to earn points the user can then redeem to purchase airline tickets or to earn cash back on their next statement. When comparing your options, keep the following in mind.

  • What do you earn bonuses or points for from the lender? Will this type of bonus offer benefit you?
  • What amount do you earn for each purchase you make? It is a specific amount per dollar you spend or a percentage of the purchase?
  • What limits are there on the amount you can earn in a year or overall?
  • What restrictions are in place for using the rewards or points? Some companies can limit when you can use frequent flyer miles, for example.
  • Which company is offering you the most lucrative offer based on what you will use most often?

By comparing these offers, you can quickly learn which gold credit card is the best one for your specific needs and uses. However, individuals need to consider the cost of using these rewards, too. Since many companies charge a fee for access to the benefits of gold credit cards, it is important to select these cards only when it makes financial sense to do so.

Travel Rewards and Features

Another way that gold credit cards tend to stand out from other credit card offers is in the travel rewards and benefits they often offer. These differ from one lender to the next as well. Some of the features you may find include the following:

  • You may earn access to using airport lounges. These are higher end facilities in airports reserved for the most prestigious of clients and customers.
  • You may earn traveller's insurance protection. In case your luggage is lost or your flight is cancelled, this type of insurance can step in to pay for the costs you incur as a result. Travellers insurance may also cover you in instances when you need to cancel your trip at the last moment.
  • Some gold credit card companies will provide you with benefits when you are travelling as well. For example, rental car excess insurance coverage may be a part of the features the credit card offers. You do not pay more for this coverage. It is a part of the company's offer to you.
  • You may be able to earn frequent flyer miles, as previously mentioned. This may provide you with a lower cost, discount or even free airline tickets for your travel needs.
  • You may be able to obtain commission free travellers cheques as well. This can make purchasing overseas safer to do.

These are some of the features these cards offer, but not all.  Each one is vastly different in what it can offer to you so you do need to read the fine print before agreeing to any offer.

Compare Gold Credit Cards

One of the most important things for consumers to do is to compare their options in gold credit cards before investing in them. This will allow you the opportunity to learn the specific details of any offer available to you.
Keep in mind that most gold credit cards do require the user to pay an annual fee. This fee may be low or high, depending on the offer available to you. The features of the card will ultimately determine what these fees are (those with better features often charge a higher fee.)
In nearly all situations, gold credit cards are ideal for those consumers who want to take advantage of the features and rewards provided as a part of that offer. It is important to know that these fees are often offset only when you take advantage of the features offered to you. If you plan to select a credit card and then not use the features, you may miss out on some of the biggest benefits available to you. Compare your options to determine which lender is offering you the biggest incentive to use their credit card offer.