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You will be able to typically gain a higher credit limit on this type of card as well as gain access to extra services”

Gold and Platinum credit cards have traditionally been seen as the reserve of higher earners. They are often associated with prestige and all the trappings that higher earners can enjoy.

Some of these images are a tad outdated now and in reality most people can apply for a Gold or Platinum card if they have a good credit rating.

However, you still need to have repayment power and this often goes hand in hand with a better income. In some cases, the card provider stipulates that there must be a household or single income of at least £10,000 plus in order to qualify for this type of card.

The benefits

Card providers reason that people who qualify for one of these cards are more likely to be able to pay repay the charges. A higher income coupled with a good credit rating makes for a strong credit profile. With this in mind, the credit limits are often higher and can be anything up to £50,000.

Other benefits that come with these cards can be travel insurance and/or travel discounts, purchase protection and free extended warranty for a number of years, although some of these benefits can be found with other types of credit cards.

You may also be eligible for special deals with hotels or resorts if you use a gold or platinum credit card. Some also give access to the lounges of various airlines and this benefit can be extended to secondary cardholders.

Gold credit cards

You will be able to typically gain a higher credit limit on this type of card as well as gain access to extra services. This card can be useful to high earners who may wish to put all of their expenses on the card for the month. If this is a combination of work and play the bill may also be higher than average and it is useful to be able to benefit from the higher credit limit.

The added perks of travel insurance or access to an airline’s club lounge with this type of card may well be useful as a higher earner may travel more, and wish for these type of service extras.

Platinum credit cards

These often give a high credit limit and many of the extra benefits we have talked about, above. But you will need to have an excellent credit record and earn a good salary to access this type of card.

Keep your cash separate

Both of these type of cards often allow a higher amount of cash be drawn from an ATM than the average credit card. However, as there are extra charges associated with drawing cash using a credit card it is better to draw cash directly from the bank and use your credit card to spend, gain the extra perks and then pay back on a monthly basis.