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Different Kinds Of Premium Cards
Having a credit card is one thing, but the premium options out there can take paying with plastic to a whole new level.
The first premium credit cards were designed to reward big spenders with complimentary extras and other benefits. As a result, they typically required a better credit history and higher income level.
These days’ premium cards are a lot easier to get and almost every issuer has gold, platinum or other select options for people to choose from.
To give you an idea of what each kind of card offers, here we look at what is offered with gold, platinum and other premium cards.
Gold Credit Cards
These cards are now the first step up from standard offerings, usually featuring a slightly higher annual fee but more value through extras like complimentary insurance.
The Bankwest Breeze Gold card, for example, has an annual fee that is $40 more than the classic card, at $89.
It offers international travel insurance, transit accident insurance, purchase protection, price protection and extended warranties.
A similar range of benefits is offered with the gold card from NAB, and the St George Low Rate Gold card.
Platinum Credit Cards
Platinum cards build on the extras offered with gold cards but also have many other features.
The most common after complimentary insurance options is personalised service through a concierge. M
Surcharges: What Are We Paying For NAB Amex And Visa Cards?
While credit cards already have their own set of charges from interest rates and annual fees, merchant surcharges could be adding even more to the cost of paying with plastic.
The last few years has seen this topic get a lot of attention, with companies like MasterCard and consumer groups like Choice criticising the high surcharge rate in Australia.
As one of the Big Banks and a strong advocate for developing fairer terms for customers through the Better Banking Reforms, NAB has begun cutting down or eliminating as many extra fees as possible.
While most of NAB’s credit cards still come with an annual fee, the bank does not charge over limit fees and only charges a $5 late payment if the amount due is over $50.
Unfortunately NAB has no control over what cardholders fork out for surcharges.
These credit card fees are implemented by merchants as a way of reducing the amount of money they have to pay in processing or interchange fees when a person pays by card.
The actual cost to the merchant is based on a percentage of the transaction amount, which according to the Reserve Bank of Australia (RBA) are as follow:
- MasterCard and Visa: 0.81%
- American Express: 1.88%
- Diners Club: 2.1%
These rates suggest that people with an NAB Visa credit card will pay less than they would with an American Express card, which is why NAB offers dual card accounts.
Most American Express reward cards earn more points than Visa or MasterCard options, so by providing both an Amex and Visa card for the one account, people can maximise their points and minimise additional costs.
In the case of NAB, all the main frequent flyer options – the NAB Qantas and NAB Velocity ranges – are dual accounts.
But unfortunately the lower surcharge does not always apply to people who use an NAB Visa credit card. Merch
Where can I find help paying off credit cards?
If youre looking for outside help to pay off your credit cards you might be looking for an awfully long time. Despite what you may have heard from your friends, seen on television, or read on the Internet, there are very few resources available to help you in this area. You might be better off seeking financial counsel that can teach how to get your finances in order.
Use our FREE credit card chaser right now to find the best credit card offers you qualify for!
Unfortunately, the information age has given way to far too many unscrupulous entrepreneurs looking to prey on individuals with credit problems. Just do a standard Internet search on a phrase having to do with paying off excessive credit card debt and you find an almost unlimited number of websites promising assistance that doesnt exist. C
Types of Credit Cards Available
Before proceeding further, it is probably best to dispel one of the biggest misconceptions around regarding UK credit cards – that is, although all UK credit cards can be considered plastic payment cards, not all plastic payment cards can be considered UK credit cards.
To clarify this further, in general, in the UK today it possible to have one or more of the following plastic payment cards:
Debit Cards
Introduced into the UK in the late 1980s by Barclays Bank (and shortly thereafter by the remaining high street banks), the debit card works by ‘linking’ to the holder’s bank account and thus allows the cardholder to use the card to make payment for items purchased. Alternatively, the cardholder can use the card to make cash withdrawals from ATMs. In both cases, the amount charged or withdrawn is automatically deducted from the cardholder’s bank account balance. As such,
HMRC tells companies to ‘max out’ credit cards, say accountants
HMRC is taking a tougher line on tax deferrals
Struggling businesses applying to defer taxes under a Government scheme are being told they must “max out” their company credit cards before they can be considered, accountants claim.
It means firms needing to defer using the Time to Pay scheme face paying close to 20pc interest on their tax bills.
HM Revenue & Customs also charges them an additional 1.25pc credit card handling fee for the privilege.
Roy Maugham, tax partner at accountants UHY Hacker Young, said the “majority” of applications made by his firm were now being met with demands for credit card payments.
“We are finding in more cases than not they are suggesting the client needs to go back to their bank or pay on their credit card before they will afford them time to pay,” he said.
The average annual interest rate for credit cards is 18.8pc, according to Hacker Young.
The Time To Pay scheme has seen businesses defer £6.4bn in tax since it was established in November 2008 as a key initiative to help businesses with cash flow problems during the recession
Last month it emerged that the number of businesses deferring their taxes under the scheme had almost halved in the past year.
HMRC said there had been a fall in “underlying demand” for the scheme as companies got to grips with their finances and the economy has returned to growth.
However, the percentage of applications being rejected had risen from 2.6pc in 2009 to 5.2pc this year. In the last thre Read more…
The Pros and Cons of Using Credit Cards
Credit cards have certainly taken a big leap from just being a plastic card payment. Gone are days when these can only be used at diners or restaurants. Today, almost every other merchant and establishment accept credit card payments.
As the years passed, the features and provisions of credit cards have greatly been enhanced to meet the demands of many cardholders. Indeed, when properly managed, owning a card can be beneficial.
In this article, let’s talk about the pros and cons associated with what they call “plastic money”. Hopefully, this post can enlighten consumers, particularly young people who are thinking about getting their first credit- about the importance of responsibility and self-discipline in using credit cards.
The Pros
Build solid credit history. Using a credit card is an easy way to build good credit history. As you regularly use your card and pay your charges on time, you are also building up your credit rating.