What’s On Offer For Premium Credit Cards?

Co-author: James Slack

Are you searching for a credit card that comes with all the bells and whistles? A premium credit card might be the right choice for you.

Canstar researches and rates 12 premium credit cards from 6 financial lending institutions. Find out what rates and features are on offer.

What is a premium credit card?

Premium credit cards are designed for an elite class of cardholders with high incomes, so they have higher credit limits than other cards, but they also charge higher interest rates and annual fees.

Premium credit cards are available in many different types:

Want more finance tips?

Save money by researching home loan rates
Sign up for free to receive more news and guides, straight to your inbox.

 

By subscribing you agree to the Canstar Privacy Policy.

Who should get a premium credit card?

A premium credit card might suit you if some of the following apply to your spending habits and needs:

  • You pay your closing credit card balance in full each month (premium credit cards often have higher interest rates than standard cards)
  • You are interested in earning rewards points, but you aren’t trying to get the absolute maximum amount of rewards for your spending (you see the points as more of a bonus)
  • You want all of the bells and whistles that come with Premium cards such as:
    • Complimentary travel insurance for domestic or overseas travel
    • Price protection insurance to cover you if you buy something from a retailer and soon after it drops in price
    • Extended warranty cover in case something you’ve purchased breaks outside the manufacturer’s warranty
    • Concierge services to assist you with making bookings or retrieving travel information

Who should not get a premium credit card?

A premium credit card may not be for you if:

  • You only use your credit card occasionally
  • You rarely pay off your balance in full
  • You want the best rates when redeeming points for flights or upgrades through airlines
  • You want the absolute maximum return on spending in the form of rewards – whether that’s cash back, gift vouchers or merchandise.

Still confused? Compare credit cards on our website to find a card that suits your needs and spending habits:

Compare Credit Cards

What rates are on offer for premium credit cards?

Cards with premium features tend to have higher fees and purchase rates than those without the added benefits. Make sure that you weigh up the costs and benefits before taking out a credit card to get these “free” extras.

For example, credit cards that include complimentary overseas travel insurance on average have higher annual fees and purchase rates than those that don’t.

Overseas Travel Insurance Average Annual Fee Average Purchase Rate (p.a.)
Without $40.67/year 17.75%
With $241.67/year 17.46%
All cards $114.74/year 18.24%
Source: Canstar. Rates and fees current as at 14 November 2018.

Are premium credit cards worth it?

It really depends on how you plan to use your card. If you know that you will make use of the premium services we mentioned above – and pay off your balance in full every month so you don’t pay interest – then it may be worth considering a premium credit card.

Compare premium credit cards using the Canstar website to ensure you’re making a decision that benefits your needs.

Compare Credit Cards

Want more finance tips?

Save money by researching home loan rates
Sign up for free to receive more news and guides, straight to your inbox.

 

By subscribing you agree to the Canstar Privacy Policy.

Share this article