Attractive, but worth the annual fee?

If you have excellent credit and are looking for a premium credit card, you might want to take a look at platinum cards.

These unique cards are designed for big spenders and those who travel a lot. Although not for most people, their rewards make them eye-catching.

WalletHub says there are over 300 credit cards with the word platinum in the name. Platinum is also sometimes used as a general term for “excellent” or “exclusive” – ​​and used in this sense, there are even more. For example, some credit card offers now use the word diamond to indicate a better map.

Here are some things you should know about platinum cards, and three platinum card offers in particular.

Annual fee may indicate a better card

Credit card companies typically charge annual fees to help recoup some of their costs. The fees allow them to offer high-value points or miles, otherwise they would lose more money than they earn.

Most of the best Platinum cards come with annual fees, some of which can be as high as $695. Higher fees are offset by the considerable benefits that usually come with these cards – for those who can afford to use them often.

Annual fee credit cards are generally better cards. Cards that have no annual fee generally offer fewer benefits.

Annual fees on one of these cards typically range from $35 to $695.

Why a Platinum Card with an Annual Fee May Be Worth It

Platinum credit cards with more benefits are harder to get, for the simple reason that they offer more. To get one of these cards, you’ll need to have a good to excellent credit score, and often only people with an excellent score will get one.

There’s a good reason for that: these cards usually come with much higher credit limits. The company offering the card wants to ensure that the cardholder is likely to pay for their more expensive purchases. Credit limits will always depend on credit score and income etc.

Platinum card benefits usually include a large number of points or miles. At least one of them offers 100,000 points or more. Before earning the bonus points, you’ll need to make a total of $3,000 to $4,000 in purchases within three months, or $6,000 within the first six months (American Express Platinum). Pay attention to minimum spending requirements when deciding if the card is right for you.

A photo taken in Marseille, France, shows credit cards on February 5, 2013. (ANNE-CHRISTINE POUJOULAT/AFP via Getty Images)

Three Best Platinum Cards

The American Express Platinum Card

The American Express Platinum, which has one of the highest annual fees ($695), comes with a host of benefits. These benefits are designed for people who fly often, enjoy luxury travel and stay in better hotels.

When you are approved and meet the requirements, you will receive 100,000 points (note that bonus point promotions may end without notice and may vary in points awarded). If you take advantage of the card’s best benefits frequently, the points earned in a year are worth far more than the annual charge. Points could get you a free flight and more.

You can earn over $1,500 in bonus points per year by earning 5X the points on prepaid flights and hotels, $200 hotel credit and $200 airline credit, bonus monthly $155 in Walmart Points (enough to pay for your monthly Walmart+ subscription), access to airport lounges, and $200 for Uber rides.

It should be noted that American Express Platinum cards are actually credit card. Unlike a credit card, a charge card does not have a preset spending limit. This can be useful if you want to make a big purchase without putting your credit score at risk. Traditionally, a charge card balance must be paid in full each month. However, today’s payment cards generally allow cardholders to pay for certain purchases over time.

The Business Platinum Card® from American Express

If you travel a lot for business, you might want to look The Business Platinum Card® from American Express. Although it has a high purchase demand of $15,000 in the first three months and an annual fee of $695, the card rewards you with 120,000 points at the end of those three months.

The Business Platinum Card offers zero percent interest on balances for 12 months. Cardholders also earn 5X the points for airline tickets, 1.5X the money spent on business purchases costing over $5,000, and 1X for other purchases.

When points are used for full or partial payment for air travel, you can redeem 35% of the points as rewards, up to 1,000,000 points! Other perks include hotel benefits, airport lounge access, $200 airfare rewards, and more.

US Bank Visa Platinum Card

If you want a platinum card at no cost, the U.S. Bank Visa Platinum Card may be the card for you. The main benefit of the card is that it offers two full years of zero interest on purchases and balance transfers. You can transfer up to $20,000 to this card. If you have balances on other credit cards, this could save you a lot of money in interest.

Research the perks you will use

Each Platinum Card offers benefits tailored to specific users. A Platinum card will only be useful if you can use the benefits offered. The card with the most benefits – that you can and will actually use – is the smartest choice. Avoid choosing a card that offers a lot of points in areas you’re not likely to use.

If you choose an air miles card that offers a lot of points, the same applies. Make sure the airline flies to destinations you’re likely to travel to and make sure it departs from the nearest airport.

High-end spenders, who will earn rewards beyond the annual fee of a platinum card, will benefit the most from these cards. Remember, you won’t earn points or extra miles until you’ve made at least $3,000 in purchases in the first three months.

Apply for a Platinum Credit Card

A Platinum card often requires a credit score of 700 or higher. If you are unsure whether your credit score is high enough, avoid applying for multiple cards at the same time. It can lower your credit score slightly, says The bank rate. Being denied a credit card will also lower your credit score.

To make sure you can get a platinum credit card, if needed, first take the time to raise your credit score and then apply. The best way to improve your credit score is to pay at least the minimum amount on each bill, on time, and reduce your credit amount to a level of indebtedness no higher than 30%, although 25% is even better.

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