What ‘gold’ and ‘platinum’ credit cards to avoid

Consumers often receive gold and platinum credit card offers in the mail that promise to improve their credit, save them money or otherwise better their financial situation. Many of these offers are disingenuous, however, and it may benefit consumers to know what to watch out for.

Such cards often require the consumer to order products from a specialized catalog, and the card often costs a certain dollar amount to open. Once a consumer pays for the card, he may discover that receiving the catalog costs an extra fee. This kind of pricing misrepresentation can be a bad sign, according to the Federal Trade Commission (FTC).

Any cards that require the consumer to call a ‘900’ or ‘976’ number should also be avoided, as the consumer may be charged a high price for calling such numbers.

Perhaps most importantly, any ‘gold’ or ‘platinum’ card company that promises to improve a consumer’s bad credit history and allow him access to major credit cards is most likely dishonest, according to the FTC. Such cards are usually secured credit cards which require the consumer to maintain a savings account as a security deposit, and these cards rarely allow consumers to obtain lines of credit with other lenders.

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