The Secret World of Prestige Credit Cards

Chances are that unless you have a prestige credit card, then you do not know too much about them, and most credit card companies that offer such services would like to keep it that way. However, these traditionally high-profile cards increasingly are being offered to more mainstream consumers, so if you are not familiar with them yet, here is your chance!

Prestige cards, such as the American Express Centurion Card (AE Black Card), Visa Signature Card, and World MasterCard are designed to offer very exclusive and often luxurious perks to the most lucrative credit users. These users tend to be business executives, a group of people most likely to meet the usually strict eligibility requirements required to obtain a prestige card.

Obtaining a Prestige Card

At least one popular prestige card, the AE Centurion Card, is so exclusive that one actually may not apply for it. Rather, this card is granted to a select group of consumers holding other AE cards by invitation only. However, there are some prestige cards for which you may apply, but the eligibility standards for approval are similar across the board.

In any case, the following standards are typical of requirements for prestige card approval:

A specific annual income, usually around $125-250K per year.
Monthly spending of at least a certain amount per month, around $2-5k.
Excellent credit history.

If you are interested in applying for a prestige card from one of your current credit card companies, try to find information about it on their website. If no information can be found, then chances are that any prestige card available is by invite-only. Regardless, it is easier than it ever has been for “normal” people to acquire prestige cards because competition between companies is fierce.


The Pros and Cons of Prestige Cards

There are many, many perks associated with being a prestige-card holder, as they are designed to meet the wants and needs of the wealthiest, busiest consumers. Very common perks that come with prestige cards, normally without any additional cost, include:

• Access to front-row tickets for major sporting events and shows.

• Complimentary “companion” flight tickets.

• Various hotel benefits.

• Backstage passes.

• Personal assistants.

• Deluxe concierge services.

• Access to airport lounges.

• Travel insurance coverage, sometimes including medical coverage.

• Invitations to private shopping events.

• Personal shoppers.

• Personal travel agents.

• Rewards programs customized by consumer.

• Premium tables at crowded restaurants.

• Much, much more! If a prestige cardholder wants something, usually all he or she has to do is ask.

So, with ALL of these benefits, surely there must be some disadvantages to prestige cards as well. These can vary quite widely between companies, but some of the most commonly cited negatives are as follows:

Annual Fees. Some prestige cards have very high annual fees, up to $2500 or more. However, there also are some cards that claim to have much more reasonable fees, such as $85 or so per year.

Interest Rate. The interest rate on prestige cards usually is much higher than on more mainstream cards. Of course, there is an exception to every rule and in today’s environment you might even find a prestige card with a 0% introductory APR. In any case, most prestige cardholders do not carry balances anyway.

High up-front fees or “initiation” fees. One card reportedly charges $5000 up front!

No credit limit. On the contrary, there usually is a monthly spending limit that you must meet or exceed. Of course, this does not sound like a problem a theory, but certainly could cause you to charge up more than you are able to afford.

Some of the most popular prestige card perks, such as access to airport lounges, can be gotten without having a prestige card. If a card has a very high annual fee, some consumers might prefer to pay for benefits separately instead.

The Bottom Line

Prestige cards are wonderful financial products for those consumers for whom they are designed. If you are a high income earner and/or a frequent business traveler, then why not take advantage of the prestige card perks? As long as you can make the minimum charge-up amounts and fees without going above and beyond what you normally would spend, then you might consider treating yourself with a prestige card. However, there are significant disadvantages and costs too, so you might want to browse other credit card options as well.