What is the difference between Gold and Platinum credit cards?

Credit cards (as we know them today) were first introduced in 1958 in the US by Bank of America. The first outside the US was the launch of Barclaycard in 1966 by Barclays bank. A rival to the Bank of America System called Mastercharge was created in 1967 and in the UK the Access credit card was first introduced in 1972 by a consortium of the other major UK banks. The Bank of America and Barclaycard payment systems have become the Visa network, while Mastercharge and the Access brand have become MasterCard. Any card issued in the UK today will usually include a Visa or MasterCard logo. With the exception of cards issued by American Express, which can only be used at establishments that accept their cards. There is a fourth, smaller network in the US called Discover.

All major UK banks and some building societies offer cards to new and existing customers. Many offer Visa and MasterCard networks and it is quite common to have an account, with individual Visa and MasterCard cards.

Gold and platinum cards were introduced to the market in the 1980s. Initially, these were offered to clients who had high incomes. They often included a higher than normal credit limit. Usually there was an annual fee attached to the card. Charging a fee allowed the issuer to offer special benefits, such as free travel insurance for the cardholder, as well as lower interest rates if the full balance was not paid each month.

Today, the difference between a gold or platinum card and a normal card has diminished. Put simply, a gold card will offer the customer a reduced interest rate and a longer interest-free period for a balance transfer compared to a regular card. The platinum card will offer even better conditions than those available for a gold card. Some gold and platinum cards give the cardholder additional benefits, such as discounts for purchases through select companies. Most issuers have abandoned the practice of charging an annual fee for holding a gold or platinum credit card.

Applying for a gold or platinum credit card is easy. Established minimum income levels and generally a better than average credit history are required before a card will be issued to the customer. The minimum monthly payment requirements will typically be similar to a standard credit card. Some issuers still offer special discounts or other benefits to gold and platinum credit card holders, but this practice is much less common than it was in the days when they were first introduced. Often the initial credit limit is higher on a gold card than on a regular card, and with a platinum card it can be even higher.