Using premium credit cards
20 August 2008
Credit cards with reward programs, such as premium gold credit cards or platinum credit cards, may be more expensive than other credit cards, but they can potentially be cheaper. By utilising reward program credit cards effectively, and using the extra benefits of gold credit cards and platinum credit cards to the fullest, credit card users can get far more value out of credit cards than they pay in annual fees.
It is important that you already use credit cards in a certain way before trying to use them to save money. If you think of your credit cards as lines of credit, then you will be unable to earn enough from reward points and benefits to make up for what you will be charged in interest. If, however, you use credit cards as a convenient means of payment and repay within the interest free period on purchases, then you may be able to avoid interest charges and thus be better positioned to make enough from reward points to get more value than you pay in annual fees.
Gold credit cards and platinum credit cards can often include even more benefits but at a much higher charge than lower level reward program credit cards. How valuable these extra features are will depend on your own needs. For instance, free travel insurance is very useful to frequent travellers, but less useful for those who rarely travel.
Please visit our comparison page if you would like to compare credit cards.
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