Gold Finger
There is something about a Gold Card, which puts it miles ahead of the rest in terms of enticing introductory deals, interest rates and 'freebies'. We tell you how to find out the way to make the most out of your plastic.
Diamonds are not a girl’s best friend any more
These days, a girl's best friend is far more likely to be her gold credit card. When they first appeared in the 1980s, gold cards captured the mood of a decade obsessed by status symbols. Now, no self-respecting career girl would slip anything else behind the bar when she goes out for cocktails.
The rush for gold
Its true – we spent an amazing £102 billion on our credit cards over the last few years- a figure that is set to more than double in the years ahead. Little wonder then that gold credit-card circulation has increased six-fold in the last few years. MasterCard Europe, says: “The days of ‘one card fits all’ are clearly over. Card issuers and banks appreciate that they have to offer premium customers something special to retain their business.”
Do you qualify?
Snobs have always loved the prestige cards and traditionally they have only been available to those earning a minimum of £20,000 to £30,000 per year because that was seen as the threshold for better credit risk. Qualifying for a gold card is now more relaxed and most banks and card issuers will waive any minimum-income requirement, particularly for existing customers.’
It’s not all good in glitter land
In an increasingly competitive market, issuers waste little time piling exclusive benefits into their gold-card deals. In addition to automatic payment protection for purchases, current offers include cash back, air miles, discounts on videos and CDs or free motoring services. The most popular 'freebie' is travel insurance. But make sure you read the small print before you travel to ensure that the cover is sufficient for your destination and any activities such as skiing or water sports. Don't forget to make sure the perks of your card are genuinely free by choosing one that does not carry any annual fee.
It is possible to get some excellent freebies but do make sure you check the monthly charges and that you're getting competitive rates of interest.
Interest or not
Research shows that 70 per cent of women have no idea what interest rate they are paying on their credit card. The same survey also reveals that women are more likely to carry debt on their credit cards than men. Only 42 per cent of women pay their credit card off in full each month, which makes shopping around for the lowest interest rate a must. Despite this, we do not seem to look far. In a recent survey, 58 per cent of women said an existing relationship with a bank was the biggest factor in choosing their credit card provider. The interest rate on gold cards can vary but it is usually less than for a standard card, which is good news.
Check out the interest-free period, too. This is the time between purchases hitting your statement and the date payment is due. It can range between 45 and 56 days. If you clear your balance each month then the longer the interest-free period, the better.
Introduce yourself
Most plastic comes with a seductive introductory offer these days. And it's not hard to find a great gold card deal that carries 0 per cent APR for the first six months or a set period. The same goes for balance transfers. But watch out for the interest rate, which kicks in once the introductory period has finished. Some are as high as 19 per cent APR.
It’s a game of cards!
It may seem obvious but...
- Check your card statement thoroughly and raise any concerns with your issuer.
- Never give card details to people who call you on the telephone - legitimate companies will always be happy for you to call them back.
- Shred any transaction slips that show your complete card number.
- Keep your credit card emergency contact details should be handy in case the card is lost or stolen.
