Gold Credit & Debit Cards

The Gold Credit or Debit Card: Is It For You?

What is a Gold Card? It's simply a credit or prepaid card that has been designated in such a way as to separate it from the rest of the cards on the market today. These designations are often used for branding purposes, such that it's easy to think of American Express when you think of a gold credit card. American Express did an outstanding job with branding when it introduced its first gold credit card in 1966. While American Express still holds this original card product close, only offering the card to individuals who come across as "worthy" card holders, many other issuers have capitalized on this exclusivity and begun offering “gold” cards of their own, many of which simply mimic their standard credit card offerings. Still, there are some cards with great features that belong in this category. Here’s what you can expect to get with your gold card:

1. Low Introductory Interest Rates / Average Long Term Rates: A typical gold credit card will usually offer a low introductory interest rate; however the introductory period and rate will not be as good as with a platinum card offering.
2. Eligibility: Other than with American Express, gold cards are routinely available to individuals with a wide range of credit scores and can even be obtained by individuals with poor or no credit scores from companies that cater to this demographic. There are also gold cards that fall in the prepaid debit card category, which are more easily available to individuals with credit blemishes.
3. Average Fees and Credit Limits: Many issuers of gold cards will offer its customers the same account fee structure and credit limit assignment that their standard card customers get. Very few will offer any discounts and those that do will tend to lean toward suspending certain fees, such as balance transfer fees, during an introductory period.
4. Rewards Programs: Many gold card issuers offer a rewards program as a way to market their offerings better and to keep the rate structures much the same as their standard card offerings.

That being said, there are some really good gold payment card products in the marketplace today. We have put together a solid list of such cards above.

So, if a gold card doesn’t offer any perks other than a rewards program, why would you consider getting one? Gold credit cards are much more accessible to a larger population of applicants, making them much more attractive to individuals with a few bumps in their credit reports. The rewards programs are a great way to earn free merchandise and travel for individuals who don’t qualify for other rewards based credit cards and the low introductory rates and suspension of fees make them a good choice for balance transfers and paying off debt. While gold cards aren’t as prestigious as they once were, they are a great product and should be looked at closely when determining the best type of card for your situation.