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Premium credit cards

Compare premium credit cards

Premium credit cards offer rewards to high earners with strong credit scores
Learn more about the advantages and disadvantages to watch out for with premium credit cards
Compare cards from multiple trusted providers

What are premium credit cards?

Premium cards are similar to standard credit cards, but typically come with an annual fee. In return for this you’ll receive perks and benefits such as points when you spend and airline lounge visits.

You might’ve heard premium credit cards called black or purple credit cards, and they’re usually reserved for big spenders with high incomes. Some cards, such as Visa Infinite, may only be available to you if you’re invited by the lender.

What’s included with your premium credit card will depend on the one you choose. Common perks include:

High credit limits
Generous rewards schemes
A range of discounts and offers for retailers and brands
Cashback
Access to exclusive experiences and events
Travel insurance for you and your family
Breakdown cover
Home emergency cover
Access to exclusive airport lounges worldwide
24/7 concierge or personal assistance service.

How do premium credit cards work?

Premium cards work much like standard credit cards in that you spend on them and then repay the balance. But with premium cards, you'll also earn points during the process, which isn't always the case with a regular credit card.

As with standard credit cards, you’ll have to apply and be approved for a premium credit card. To be eligible, you’ll need to:

Be over 18
Have a UK bank account
Have a very good credit score and history
Be a high earner.

What are the benefits of premium credit cards?

Premium credit cards are particularly useful if you’re a frequent traveller. The best ones can offer great rewards, including:

Travel benefits – you’ll find credit cards with lounge access, as well as those offering worldwide travel insurance, and concierge services for booking travel and accommodation. You might be given complimentary hotel room upgrades and other perks like later checkouts. Many cards offer air miles you can build with each purchase and use for free or discounted flights.
Lifestyle benefits – many cards have generous rewards schemes offering points for shopping at certain retailers. Other benefits can include cashback on your spending, offers with certain retailers, and access to exclusive events.
Round-the-clock assistance – some lenders offer 24/7 help if, for example, your card is lost or stolen and you need an emergency card replacement or cash advance.

As with other credit cards, items costing between £100 and £30,000 bought using a premium card will also be protected by Section 75.

What are the disadvantages of premium credit cards?

There are a few downsides to premium credit cards:

Hefty annual fees – those perks don’t come free. At the time of publishing, Amex’s Platinum card had a £650 annual fee, for example.
High interest rates – interest charges are often higher than those for standard credit cards. If you aren’t confident you’ll be able to clear the full balance each month, a premium card might not be the best choice for you.
Tough eligibility criteria – these cards are usually only available to people with excellent credit scores and high incomes, meaning they’re not accessible to many people.

How do premium credit cards compare to standard credit cards?

Premium credit cards offer exclusive rewards you might not get with a standard card, but there are other differences to consider:

Premium cards always come with an annual fee, whereas some standard cards are fee-free.
Some standard cards offer 0% interest introductory offers, whereas you’re unlikely to find this with a premium card.
Some premium cards are actually charge cards. That means that you have to pay off the full balance each month.
The minimum age for standard credit cards is typically 18; some premium cards need you to be at least 21.

Bear in mind...

If your premium credit card includes travel insurance, make sure it offers the level of cover you need.

For example, pre-existing medical conditions are often excluded. If you’re not fully covered, you may need to take out a separate travel insurance policy.

How do you qualify for a premium card?

To qualify for a premium card, you’ll need:

An excellent credit rating
To be over 18 (sometimes 21)
To be earning a high salary – although exactly how much this is will vary among providers.

Keep in mind that some premium cards are invitation-only. Even if you qualify, you won’t benefit from a premium card unless you can afford to spend on it regularly. If you can’t, a cashback card or use abroad card might be a better option.

Quick tip

You can check your credit report for free with any UK credit reference agency (CRA). The big three are Equifax, Experian and TransUnion.

You can find out how you may be able to boost your score, plus pick up and correct any potential errors that could affect credit applications.

Can I get a premium credit card with bad credit?

You’ll probably struggle to get a premium credit card if you have bad credit. Premium credit cards are aimed at high earners with a stellar credit history.

If you’ve got a poor credit history and are struggling to get a standard credit card, you could look into credit builder credit cards. Although they have higher interest rates and lower credit limits, eligibility is less strict.

Our eligibility checker uses a soft search to see how likely you are to be accepted, without harming your credit score.

Bear in mind...

With a credit builder card, you’ll need to clear your balance in full each month or the added interest will get very expensive.

You’ll also need to be patient if you’re looking to use the card to improve your credit score. Learn more about credit builder credit cards.

How much do premium credit cards cost?

Premium cards come with some great perks – but at a cost.

Most charge an annual fee, which can range from £85 to a hefty £650 depending on the card and its benefits. So, to really get your money’s worth, you’ll need to make full use of the perks on offer.

Another thing to keep in mind is the APR (annual percentage rate), which is the total cost of borrowing money over a year. With premium credit cards, the APR tends to be very high, but that’s partly because it factors in the annual fees.

Is a premium credit card right for me?

Whether a premium card is right for you comes down to your income and spending habits.

If you’re a high earner and spend sensibly, a premium credit card can be packed with handy perks.
If you don’t use the card wisely, or don’t make the most of those benefits, it could be both risky and expensive.

Some important things to keep in mind about this type of card:

They rarely offer a 0% introductory period and APRs can be high. So, if you can’t pay off your balance in full each month, a premium card might not be for you.
Premium credit cards often have high credit limits, which can be helpful for flexibility but risky if you’re not careful with your spending.

Think about how much benefit you’ll get from the perks on offer. You may find that some, like travel insurance, are cheaper elsewhere – or you may already have them.

What alternatives are there to premium credit cards?

There are a few alternatives to premium credit cards, including:

Rewards cards: these can offer a whole heap of goodies, from cashback and shopping vouchers to air miles and discounts on family days out.
0% credit cards: these offer an interest-free period on balance transfers or purchases, so you can spread your repayments without paying interest.
Travel credit cards: the best ones offer fee-free transactions and excellent exchange rates when used abroad.

Use our comprehensive guide to help you decide which credit card is best for you.

What should I think about before applying for a premium credit card?

Before you apply for a premium credit card:

Check the terms and conditions to make sure you fit the criteria. Eligibility can be a lot stricter than for standard credit cards, and often depends on your salary, age and credit history.
Think about whether you can afford the annual fees, and if the benefits you’re getting justify the cost.
Even if they’re worth a lot of money, ask yourself whether the rewards match up with your lifestyle – will you actually use them?
Find out whether there are alternative credit cards that offer the perks you’re after – such as rewards, cashback, or fee-free spending abroad – without high annual fees.

You can check whether you’re likely to be accepted for a premium credit card using our eligibility checker. It’s a soft credit search, so won’t impact your credit score.

Compare the Market Limited acts as a credit broker, not a lender. To apply you must be a UK resident and meet the minimum age criteria set by the card provider. Credit is subject to status and eligibility.

Are premium credit cards worth the fees?

Whether a premium card is worth the fee depends on your circumstances. If you travel a lot and love VIP perks such as lounge access and concierge services, then a premium card could be worth thinking about. The rewards and benefits can sometimes be worth a lot more than the annual fee if you’re taking full advantage of them.

On the flip side, if you’re looking to save money and can’t always pay off the balance each month, a premium credit card could cost you a fortune. You might find a better way to spend that annual fee elsewhere, especially if you don’t use all the perks.

What our expert says...

“Premium credit cards lure you in with their rewards, and they can be valuable to those who make good use of those perks and clear their balance in full each month to avoid interest.

“But if you don’t use the rewards or you don’t pay off your balance in full each month then ask yourself if it’s wise to get one. You may end up out of pocket thanks to a high annual fee and/or interest charged.”

- Guy Anker, Personal finance and insurance expert