Credit Cards and their charges

Originally posted by Quamera ↑

We have a "fee free" Coles credit card issued by Citigroup with a $3000 limit. It has been held since the Coles Myer days (different issuer back then I think) and because I pay the entire balance before the due date each month we have something very rare in this world, a useful service for no direct outlay. Sometimes an online merchant adds a 2% credit card fee but most of the time if there are any charges we don't see them.

Now Coles is offering us a Platinum Card because we spend over $1000 per month. They guarantee that all fees and charges will remain the same but we will be given free insurance for purchased items if they are lost, stolen or accidently damaged. That could be handy. Coles is also offering a free Concierge service to platinum card holders, I doubt if I will use that but you never know.

Now where is the catch. There is an option to decline the Platinum card but if Coles wants to offer us another free service for no direct outlay why should I say no. If they really wanted to cancel or alter our fee free card because they make no money from me, Coles could have done that at any time in the last 20 years.

Does anyone have experience with being upgraded to a platinum card from any issuer. Is there something they don't tell you about that is good or bad about the process. The card number changes so I have a couple of direct debits that will need to be updated but I can handle that. I just remain slightly suspicious of Coles motives for offering us something extra for no charge.

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As long as you have in writing that the card will be the exact same other than the additional extras you are going to receive there should be no catch. But like someone else has said it pays to check both fine prints. Probably the system flagged you that as you do constantly spend over a certain amount ($1000) each month you might be entitled to have an increase CC limit if you have a platinum card, but not the basic card you have now? I do know each tier type of card you have only has a certain limit.

We got a platinum card with our mortgage that comes with all the bells and whistles you are being offered. It started off at $5,000 limit, but within 6 months they sent us a request for 10G, so I took it. We had a few big expenses coming up and well better to have the money in the offset account for a further X amount of days then taking it right then and there. About 1 yr after that a new limit increase to $20G. Umm'd and arr'd over that and only asked for $15G. Every 6 months we get invited to the max limit of $30G, but I always decline. $15G is more than enough for us, most times our CC is about 1,500 - 2,200 just depending on what happens in the month. If you happen need to spend more than 15G in a month you could also just add money to the CC before you purchase, as long as you don't go over the limit it will always be approved.

Like you we pay off the full amount on the due date, you might think that your card issuer does not receive any money from you but they get a small % of the total transaction(s) you make on the card, the interest from people that do not pay are just cream on the top for them though.

Credit Cards and their charges, page-6