Every coin has two sides same goes with everything, they have their advantages and disadvantages as well. In the case of Credit Cards, they are majorly 4 categories, although there are many others as well. These categories are said to be, fuel credit cards, cashback credit cards, shopping credit cards, and travel credit cards. Now these types of credit cards are also distinguished into some categories: beginners or entry-level credit cards, and premium or super premium credit cards.
Specializing in one particular category is what normal, basic, or entry-level credit cards are for. This can match your day-to-day needs if you are a common person living off your paychecks. But the plan is pretty different for a premium or super-premium credit card. These cards are also known as Elite Credit Cards as they are specialized for high-worth people with more than enough earnings. Sometimes, people who are not aware of all the pros and cons of these credit cards, exaggerate themselves be it in any way.
Elite credit Cards also have their major advantages and disadvantages. However, to clearly say whether they are worth it or not will not be fair as they can work out for some people where they might not be as great for others. This so happens to be the case that you will have to decide whether the credit card is good enough for you or not.
Advantages of Elite Credit Cards
1. Travel benefits
With Elite Credit Cards, you get extensive traveling benefits which also include airport lounge access, complimentary hotel stays, travel insurance, airline fee credit along with reward points. These traveling benefits will not only help you spend less on your major traveling expenses but it will also provide you with comfort and luxury.
2. Membership Offers
Elite Credit Cards frequently offers exclusive membership programs which provide you access to great experiences like VIP treatments at hotels, priority booking for specific events, and much more. The membership benefits will elevate the lifestyle of a person making things more exciting for the users.
3. Big Welcome Offers
These credit cards offer big welcome gifts or benefits. These gifts are given in return for your joining or renewal fee. The primary welcome gifts are worth the same amount as the joining fee in most cases. There are other joining benefits that you usually get with credit cards.
4. Great Rewards
You will also be eligible for a great rewards rate with every paisa spent. Moreover, there will be accelerated reward points for certain categories where you can earn 2X, 5X, 10X, or 20X more with the same amount depending on the card type.
Disadvantages of Elite Credit Cards
1. High Annual Fee
Similar to Joining Fee, Elite Credit Card also has Annual Fee or Renewal Fee. This annual fee charged can range from a few hundred to several thousand Rupees. The fee sometimes might also outweigh the benefits for particular individuals. For example, if you do not travel much or don’t travel at all, then you will not be able to use the traveling benefits. Here in this case scenario the rest of the benefits you have, or you can use might not look like they are worth the high annual charges you will have to pay every year to renew the credit card.
2. Fine Print on Perks
One of the major drawbacks of credit cards be it Elite or a normal credit card is that some benefits they provide might have a loophole. This loophole can be the restrictions, blackout dates, or might require excessive spending to unlock the benefit. The card will remain underutilized if the terms and conditions are not understandable to the user.
3. High APR and Other Rates
There can be credit cards with which you will be charged high-interest rates than that regular credit card interest rates. Other payments such as late payments fees or foreign transaction fees are also added to the overall rates. Carrying a balance forward here can be quite an expensive transaction.
How to choose the best Elite Credit Card for you?
It is very important that you choose the right credit card for yourself in the case of Elite Credit Cards, as no doubt you will be paying more than the average joining fee to get your hands on the card. Now, what is also important is that you have prioritized every single thing and outlined your major needs to get the best credit card for you.
Firstly, you will have to note down the questions such as what are my basic expenses? For what expenses will I be using the credit cards? Do I have a lot to spend on or do I need it as an emergency fund?
Secondly, while answering these questions, outline your lifestyle needs. Such as you can add things like how frequently you go to movies or dinner outside or if you travel often, what means of transportation do you use commonly. Outlining the needs and the things will generate an idea for you that you are looking for a credit card that will be paying for these things and it has the benefits which you will be using.
Thirdly, while choosing a credit card, go through all the details presented. Take your details from the bank or a different site. Take necessary details like APR, Forex Charges, Perks Benefits, Usage, etc. Knowing all these things will help you in utilizing the credit card more efficiently.
List of Elite Credit Cards –
- Axis Bank Magnus Credit Card
- SBI Bank Aurum Credit Card
- American Express Platinum Credit Card
- HDFC Bank INFINIA Credit Card Metal Edition
- Emirates Skywards ICICI Bank Sapphiro Credit Card
Credit Cards have plenty of features and crucial benefits which they provide but they are usually restricted to certain categories. While the Elite Credit Cards are different, they are all-rounders and provides you with major benefits which includes memberships, welcome, traveling, accelerated rewards, discount on movies, dining, and hotels, and other added on benefits. However, the cards also have their own drawbacks which are stated above. But whether the credit card will be worth it for you or not will be determined by the outlier you will define in order to choose the best credit card for your lifestyle.