A Platinum Lifestyle, But Do You Need A Card That Confirms That Status?

A Platinum Lifestyle, But Do You Need A Card That Confirms That Status?

It could be argued that some people view the idea of being able to produce a platinum or gold card from their wallet as a symbol of success and an indication of a reasonable level of wealth.

There are plenty of good things you can do with your money, but when it comes to the annual cost of holding a high-end card, you might want to weigh up whether the fees and benefits provided by some of these cards, offers value for money.

Status symbol that comes at a price

If you want to own a high-end luxury vehicle or live in a lavish home, these are obviously going to cost you money in order to enjoy these particular items, and the same scenario applies to having a prestigious platinum card in your name.

In fairness to the card companies that offer these platinum and gold cards to customers who have demonstrated a reasonable level of wealth and income to qualify for the card in the first place, they do try to offer a varying number of benefits and features as part of the package.

The majority of the platinum cards available tend to offer domestic and international travel insurance as a standard feature, together with some sort of points rewards scheme and maybe access to concierge services, where you can ask for help getting sports tickets, flights, or restaurant bookings for example.

The other noticeable features are often a generous credit limit which should allow you to spend as much money as you are likely to need, whatever your lifestyle, plus you might also get hotel and flight upgrades as well as priority treatment.

Weighing up the pros and the cons

If you travel extensively and enjoy the opportunity to relax in a VIP lounge at the airport and want to be rewarded for all the air miles you are clocking up, you might just decide that the annual cost of holding a platinum or gold card, is worth the money.

Another worthwhile feature that might help to justify the cost of paying to have a prestige card in your wallet, is the fact that some of these cards allow you to spend money around the globe, without worrying about paying a foreign transaction fee.

If you find a card that offers this feature, and you use the card extensively wherever you go, then it may well turn out that the cost of the annual fee is more than offset by the savings you make on foreign transaction fees.

Worth the fee?

The only person who can answer whether it is worth paying to hold a platinum or gold card is you.

Your decision on whether the annual fee is justified should be based on not just the attraction of having a card that some perceive to be a bit of a status symbol, but more pertinently, whether all the benefits that you are ultimately paying for in the annual fee, are useful enough to you personally in order to warrant you applying for a particular card.

Ethan Walsh is a personal finance consultant whose articles can be read around the web. He writes about growing and managing your finances in the best way possible.


Anum Yoon is the founder and editor of Current on Currency. She loves all things personal finance, which is why you'll find her work all over the PF blogosphere.

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