What are premium credit cards: Who are eligible for them?

Kolkata: Credit cards are available in a number of varieties. While many cards are vanilla cards, at the other end of the spectrum are premium credit cards that offer exclusive perks such as airport lounge access, concierge services and high rewards. Needless to say, they also bear higher credit limits which are appropriate for frequent and high-value shoppers, diners and frequent travelers. The focus of premium credit cards is different from the vanilla cards and they are designed to offer the conveniences typically required for a high-flying lifestyle.

Credit cards usually offer a basket of benefits that appeal to a specific groups of users. Premium credit cards are no exception. The services and rewards that come with premium credit cards are usually demand by those who lead a high-flying lifestyle. Every major credit card issuing company has premium credit cards. One has to remember that the charges that these cards bear are also premium. They can be as high as more than Rs 12,000 per year.

While vanilla cards typically offer small discounts on shopping or reward points for making expenditure above a limit through the card, premium cards fetch exclusive and special offers for the user. But all these have to be obtained in lieu of a hefty fee. These are issued mostly by major banks and the users are chosen based on their income. In short, those in the high-income bracket are targeted for these cards. Obviously, the number of potential users of these cards are far fewer in number compared to vanilla cards. These can be used for access to golf clubs, special clubs, international lounges, 24X7 concierge service -- facilities which are not used by the common people.

Let's have a look at premium credit cards issued by three of the top private banks in the country:

HDFC Bank Infinia Credit Card (Metal Edition): HDFC bank is the biggest private sector bank in the country. Among the services offered are complimentary Club Marriott membership, personal concierge services, up to 20% discount for fine dining and stay in select restaurants/hotels. The annual charges is Rs 12,500 plus taxes.

ICICI Bank Emeralde Credit Card: ICICI Bank is the second biggest bank in the country. It offers benefits including access to golfing locations in India and to some around the world. Therefore, those who have a taste for golf could get them. This card also offers free access to lounges in domestic and international airports. However, if you have a monthly income lower than Rs 1.5 lakh, you are not eligible for this credit card.

Axis Bank Magnus Credit Card: If you have a special inclination for ‘extraordinary weekends’ that entails golf lessons, airport concierge service and airport transfer, this card can be appropriate for you. One has to pay an annual charge of Rs 12,500.

By the way, the American Express Centurion Card is widely believed to be the most premium card globally. Significantly, one cannot apply for it, you can get one only if you are invited by the bank. Of course, the precondition is, the bank has to perceive you as having a high enough networth to offer such a card. The annual fee for this card is $5,000.