In this brief guide, we are going to talk about gold credit cards, the benefits of a gold credit card and how to get one.

What is a Gold credit card?

A gold credit card is a next level above the normal standard credit cards. These credit cards offer better rewards, perks, have higher credit limits and will usually have a higher annual fee than the standard credit cards and the silver credit cards.  Gold credit cards are the cards between a silver credit card and a platinum credit card.

Features of a gold credit card

Below are some of the typical features of a gold credit card:

Gold credit cards will usually have a lot of complimentary extras such as travel insurance, health insurance, airport lounge access, car rental insurance, luxury concierge benefits,VIP travel benefits. From chauffeured transportation, purchase protection, get extended warranties, return protection and price protection on new items you purchase with your gold card.etc.

Gold credit cards will also offer rewards points for your purchases which are much more competitive than what you may get from a standard rewards credit card. The rewards you will get on a Gold credit card will also not be limited as they may be with most standard credit cards.

Gold credit cards will also offer more competitive bonus points than the average standard credit card. This makes them a favourable option when considering which credit card to sign up for.

Gold credit cards will also usually have a mini credit card limit which they can offer. This may in some cases be much higher than the maximum credit limits on most standard credit cards.

Gold credit cards will also usually have high annual fees. This could be as much as £250 for the year but maybe even more.

Gold credit cards will also usually have a minimum income requirement which you will need to meet to be eligible for such credit cards.

You will also usually need to have a very high credit score as well as a good credit history to be eligible for a gold credit card.

What to consider when looking at a gold credit card

When looking to a gold credit there are a variety of factors you may want to consider, they include:

What are the annual fees of your credit card?

 The annual fees are very important as they could affect which card you want to get. You may also want to consider the annual fees vs the credit card rewards.

How will you use a credit card?

Your credit card usage will determine how much rewards you can earn with your credit card. If you don’t use your credit card often then you may not find any advantage in paying such high annual fees if you are not using the card enough  to benefit from its rewards. There may also be caps on the rewards which are paid on the gold credit card per month so be sure to check for this.

Can you afford to repay the credit card?

Another important factor when choosing these types of credit cards is the fact that they have such high credit card balances which means you must be sure that you are able to repay the credit card before applying for it.

What additional perks do you want?

There are many additional perks which you may want to have with the credit card. This could be airport lounge access or a particular limit on travel insurance etc. But for these features to make sense for you, you must also consider how often you are going to use them.

Will you be eligible for a gold credit card?

Another major factor you should consider before applying for a gold credit card is whether you will meet the eligibility requirements and therefore be able to get this kind of card.  A gold credit card will usually require you to have a high income, a high credit score and a stable job. These are the minimum requirements.

If you are unsure of what your credit score is then you should check your credit score from the four credit bureaus in the UK: Experian, Crediva, Equifax and Transunion.

Some of these credit bureaus may charge you a fee to view your credit report so what you can alternatively do is request a statutory credit report which is a free credit report which each credit bureau must provide to you upon you requesting it.

Alternatively, you can also use credit score services such as Checkmyfile and clearscore to check your credit report.

You will also need to be over 18 to enter into any credit agreement.

What to consider when getting your credit card?

Whilst the gold credit card may be right for you, there could also be other potential credit cards which suit you better. It is always advisable to use a credit card eligibility checker 

Which provides you with all the credit cards you may be eligible for outside of the gold credit card.

When comparing multiple credit cards; below are the things you should look out for before applying.

Eligibility

Each card issuer will have its own lending criteria that  you will need to meet before they will provide you with an offer of credit. 

There are now credit card eligibility checker platforms which let you know which credit cards you are eligible for and which you have a high probability of getting on application. 

Most credit card providers now have their own credit card eligibility systems in place which will let you know if you will be approved for a credit card with them  or not. 

These tools use a soft credit check t pull your credit file data and hence does not leave any footprints which are visible to the public or harm your credit score.

You should avoid applying for a credit card if you are not confident you will be accepted as rejections for credit could damage your credit score and history. This may then affect your ability to get further credit in the future.

Interest rates

When getting a credit card, the interest rates on the credit card are a very important factor and you should always lookout for the APR figure. The interest rates on the credit card are the rates that will be charged on any outstanding credit card balance which you carry over from one month to another. If you pay your credit card balance in full each month then you will not have any interest to pay.

Credit cards typically come with up to 55 interest-free days on purchases if you don’t carry a balance month-to-month.

Credit limits

You should look at the credit Credit limits when choosing a credit card provider as the credit card limits will determine how much you can spend on your credit card. 

Most credit card providers may offer you a credit limit increase if you can show good credit behaviour over a few months.

Rewards and perks

Credit card providers offer various rewards and perks but usually, these are reserved for applicants with high credit scores.

Fees

Some credit card providers will have annual fees on their credit cards but these are usually for credit cards with high credit card limits and lots of rewards or perks.

You should always check what fees are attached to your credit card. These can include annual or monthly account fees, cash advance (withdrawing cash using the card) fees, overseas transaction fees and others.

How to get your gold credit card

To get your gold credit card, check to see if you have a credit score first.

If you are unsure of what your credit score is then you should check your credit score from the four credit bureaus in the UK: Experian, Crediva, Equifax and Transunion.

Some of these credit bureaus may charge you a fee to view your credit report so what you can alternatively do is request a statutory credit report which is a free credit report which each credit bureau must provide to you upon you requesting it.

Alternatively, you can also use credit score services such as Checkmyfile and clearscore to check your credit report.

Once you have done this you should then check on a credit card eligibility platform to see what credit cards you are eligible for and then apply for the best credit card. This may be the gold credit card or it could be another credit card from a different provider which suits you better.

In this brief guide, we discussed the gold credit card. If you have any further questions please let us know.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.