Annual fee credit cards: Gold cards

Gold credit cards usually feature an annual fee that is more expensive than the annual fee on a standard credit card. Below are some characteristics of gold credit cards that card holders can take advantage of.

The greatest advantage that gold credit cards offer is their reward system. Points are rewarded in relation to the amount spent, which amounts to a pure one-for-one conversion (one point for every dollar spent). However, card users can also earn more points on select goods at participating merchants. The points earned can later be redeemed for airline miles, petrol purchases, gift cards, or discount shopping. Furthermore, gold credit cards provide high spending limits for a reasonable interest rate, such as the NAB gold credit card with a rate of 19.74% p.a. on purchases. Exclusive promotions such as bonus points or low interest rates are another common perk. For example, the NAB card provides a rate of 1.99% p.a. interest on purchases and balance transfers for the first 12 months.

Gold credit cards work great for travellers since the majority supply travel rewards and complimentary travel insurance if the user’s flight is booked with the card. Lenders provide a private phone number for card holders to call in the event of a legal or medical emergency. Gold credit cards tend to offer an extended warranty and other insurances on goods purchased with the card, while providing automatic enrolment in programs that protect against theft, loss, and damage.

Gold credit cards have an array of features typically not seen on traditional credit cards. These are the result of an increase in the annual fee that enable the holder to access such rewards, benefits, and insurances. As the features increase, so do the annual fees, but for many cardholders the higher fee is worth it in the end for superior perks.