Classic, Gold, Platinum or Purple: what's the difference?

Generally speaking, gold and platinum credit cards are marketed to those with a higher financial status and as such may include extra services and benefits.

However, over recent years the distinction between classic, gold and platinum for that matter, as well as the actual definition of a 'gold' or 'platinum' credit card has been blurred.

The typical 'gold/platinum credit card' premise is one of heightened status and benefit in return.

While this is still the case in the ranges of some credit card issuers, other credit card issuers now confusingly use 'gold' and 'platinum' in the names of some not particularly status marketed cards.

In fact, 'gold' has even been used in credit cards aimed at people who need to strengthen their credit history.

This could largely be down to the fact that 'platinum' - those supposedly for even higher status than gold - are now often fairly mainstream marketed credit cards.

It depends on the issuer

In light of this blurring - the difference between a classic and a gold or platinum credit card largely depends on the provider issuing it and how they've chosen to market their credit card range.

Common reference generally means a gold or a platinum credit card offers extra cardholder services, an increased credit limit (subject to status) and improved benefits to cardholders with better financial status such as higher salaries and also who may be aged 25 upwards.

They may also offer better terms on interest charges.

In reality though, the difference can be the same as comparing a 'classic' card with any other 'classic' card.

Unless a bank is offering a step-up their credit card range to the 'gold card' - credit cards may be better chosen by the reward, interest rate or deal they're offering than their name.

Incidentally, the world's most prestige credit card is actually a purple card .

We figure Coutts were starting to feel gold wasn't quite as exclusive as it used to be, and after all, purple is fairly regal.

Minimum income requirements

Back to reality for the rest of us though.

As with all credit cards, minimum income requirements can vary - and additionally may not always be set explicitly.

By this we mean that while the issuer may not choose to list an exact minimum figure in the acceptance criteria - they may still have one they can then choose to be more discretionary on in dependence of other factors for example.

Generally speaking though, where minimum income requirements are listed explicitly - they tend to be around £20,000 for platinum credit cards.

Other approval criteria

Minimum income isn't the only approval criteria that may be stricter on a prestige credit card though - age, credit history and current debts are just some of the other factors that can limit who'll be considered.

All credit card issuers will set out what the minimum criteria is at the start of any application though - be sure to check these carefully and make sure you meet them before applying as a rejection can damage a credit report.

Prestige benefits

Those gold and platinum credit cards that are prestige versions can often offer extra benefits for cardholders with heightened financial status - such as:

• Increased credit limits (subject to status).
• More competitive rates of interest.
• Inclusive insurance policies, such as purchase protection.
• Travel benefits, including help abroad and additional cover
• Reward schemes, such as cash back or air miles.

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