There was a time when having a credit card was a status symbol, then every Tom, Dick and Harry had one so banks started to introduce Gold Card, Platinum Cards and the like for status conscious applicants.
Now everyone has a collection of silver, gold and platinum cards in their wallets so there is no longer any status attached to these cards either. If you attach importance to ststus symbols and the visible signs of wealth then charge cards and premium credit cards may satisfy your need, at a price.
We would all be better off in many ways with a charge card rather than a credit card. Charge cards do not allow you to carry any debt forward and must be repaid in full each month. American Express and Diners’ Club cards are the two best known ones that are widely available. Of course you could and should be using your free credit card as a charge card and paying off the bill every month in any case.
Boundaries are often blurred with charge card companies now offering credit cards as well.
Charge cards usually come with an annual fee, though they sometimes have an initial free introductory period.
Premium Credit Cards
If you need one, forget it, you won’t get one. Needing a card implies financial difficulties and theses cards are only available if you have a very high income and an impeccable credit history. You have to pay an annual fee for them too, so having one makes little sense for most people.
Both premium credit cards and charge cards offer perks, usually as points that you can use to buy flights and hotel stays. Cards with higher annual fees allow you to earn these points quicker and you need to do your sums to see which one, if any, is right for you.
- Applying for a Premium Credit Card
These cards are only targeted at an extremely low risk demographic. Make sure yCredit: http://office.microsoft.com/en-us/images/results.aspx?qu=rich&ex=1#ai:MP900442513|mt:2|ou fit this target group or you will be turned down, which could affect your credit rating for any future loans or card applications you make.
Your income should be at least three times the national average, you should have a perfect credit history and shown the ability to handle high spending limit credit cards successfully, never carrying any balance forward. You must use your current card to pay for much more than just essential items each month, to demonstrate that you have a high disposable income. Your job must be secure and you should have substantial savings.
Plain and simple credit cards are free and allow you to buy everything a premium card can buy and without any annual fees. Rich people always look after their pennies and will never pay for anything that can be had for free. It is only those aspiring to grandeur who waste their money on non-essential status symbols like charge cards or premium credit cards.
Debit cards are nearly as good as cash, though without they do not make any status statements.
Cash is the new status symbol. Paying with cash still has a certain kudos, if you attach importance to these things; being debt-free and cash-rich is the new status to aspire to. Paying with cash will always be acceptable everywhere. You may need a credit card to hire a car but that is for security more than anything else.
Who Needs a Premium Credit Card?
Nobody needs one. Some people want one for the perceived status that they think is attached to having a charge card. Most people handling credit and charge cards could care less what kind of card is flashed; they never even look at it most of the time, so are hardly going to start fawning and grovelling over the owner.