Types

• Most major credit card issuers offer some sort of premium card. These cards go by many names, including select, premium and gold. Some card issuers use silver, gold and platinum to represent tiered offerings, each with additional benefits. Some credit card issuers reserve gold cards for applicants with a very high credit record or those who have held a standard, non-gold card for many years. Others offer gold cards to a wider range of applicants and use the gold name primarily as a marketing technique.
  
  

Avoiding Scams

• The Federal Trade Commission has cited the risks associated with some gold credit cards that the issuers advertise as being able to improve a cardholder's credit. In some cases, these cards come with a promise of earning the cardholder access to a better credit card in the future. However, these gold cards may actually be merchant cards that consumers can use only to purchase merchandise from a special catalog. Gold card schemes often charge high fees and may not be able to deliver on the promise of improved credit.
  
  

Comparing Benefits

• Gold cards affiliated with a reputable bank or credit card issuer feature benefits that consumers must compare when selecting a card. One common gold card benefit is a very high credit limit, which allows the cardholder to finance larger purchases. Some gold cards also include access to cash advances. Perks like airline miles and cash-back points also vary from one gold card to another. To get access to these benefits, applicants may need excellent credit. Some gold cards also charge an annual fee, which the issuer may waive for the first year to increase applications and issue more cards that will require annual fees in the future.
  
  

Comparing Rates

• Interest rates are an important feature of gold credit cards. Higher interest rates mean that charges will cost more over time, especially if a variable interest rate allows the card issuer to increase the interest in the future. Gold cards may allow holders to transfer balances from other credit cards, but a different interest rate may apply to these transactions. Consumers should look for cards with low rates and avoid those with variable rates or balance transfer rates that are much higher than the rate on an existing credit card.
  
  

Alternatives

• Gold cards represent only one type of credit or loan offering. Consumers who want to be able to make small charges for daily expenses and have the convenience of a single monthly bill may be better off with a no-annual fee credit card that lacks the gold or premium moniker. People with larger expenses, such as running a business or paying for a major home improvement project, can turn to a personal line of credit or second mortgage to get access to funds without applying for a gold card.