Gold credit cards along with platinum and other ‘precious metal’ cards comprise the upper crust in the credit card industry. With so many credit card applications and offers stuffing your mailbox, credit card issuers need to find ways to attract your attention … and few things arrest the eyes as quickly as gold.

Since they are supposed to convey a sense of status, gold credit cards tend to come with many extra perks. Gold credit cards are designed for people who travel a lot, tend to make many purchases at home or while on travel, and prefer to pay off the entire balance due each month. This profile suggests people with higher incomes. The income requirement for gold credit cards would be in the order of at least $50,000 a year, and this must come in tandem with a solid credit record.

Assuming you have the income and the credit record to qualify for gold credit cards, it may interest you to know that they are especially useful if you want a card with generous reward schemes and/or special insurance cover. If you are in the market for gold credit cards, you may wish to compare the various credit card applications, particularly on the following features:

- Interest rates. Privileges and perks come at a price, and gold credit cards are no exception. Since they actually are generous reward credit cards, interest rates are usually on the high side. Commonwealth Bank’s 20.74% p.a. is indicative, and the rates of other gold credit cards will vary around this figure. But since your assumed preference is to pay off all amounts due, the interest rate should not matter so much ? unless you happen to miss a payment.

- Annual fee. Gold credit cards usually have expensive annual fees. The normal range might be between $90 and $150 per year. You can recoup this cost if you strictly follow the rule on full payment on each monthly statement, which saves interest, and through the more generous rewards and benefits package.

- Credit limit. Your gold card credit limit will be higher than standard cards. Some gold credit cards start with a $5,000 credit limit while those with higher annual fees may give $25,000. It is even possible to get one with no preset spending limit. This is certainly helpful especially when you are on an extended overseas trip.

- Special insurance. Gold credit cards provide free overseas travel and accident (including transit accident) insurance cover for you and your whole family. Conditions for cover may vary, so you should carefully compare them. Some issuers also cover you for emergency medical treatment and for expenses incurred due to unexpected trip cancellations, flight delays, missed connections, and luggage delays. It is not uncommon for issuers to require you to pay a significant amount of your travel arrangements using their card.

- Purchase protection and warranty cover. Purchase protection covers you for new purchases (usually personal items only) that are lost, stolen, or accidentally damaged within a 3-month period. Extended warranty on purchases made with gold credit cards covers you for 12 more months after the original manufacturer’s warranty has expired.

- Fraud protection. The card should not make you liable for unauthorised or fraudulent purchases, especially when made through the Internet. You may be required to notify the issuer when you suspect your card is being misused.

There may be other benefits like concierge services and extra reward points on particular types of transactions. In sum, gold credit cards may be more expensive (in terms of rates and annual fees) but, provided you manage the usage carefully, you will find them worthwhile.

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Richard Greenwood is co-founder of The Click 4 Group which runs a number of finance comparison websites including http://www.click4credit.com.au which compare products including debit cards and credit cards.