Luxury credit cards, or « black cards », are the most exclusive credit cards in the market.
A lot of mystery and myths surround these elite cards, with crazy stories about how the ultra rich use them to make farfelus purchases, horse riding, « Dance with wolves » to the sand of the Dead Sea.
Although it is difficult to know how many of these rumours are true, there are a few things we are sure about black cards: they are accompanied by very high annual fees, they have very high expenditure requirements and they are not marketed to the average consumer (sorry).
But are black cards really worth it?
Select examines below the added value of a black card, the people who can benefit from it and the other high-end credit cards you might consider instead.
What is a black card?
The credit card most associated with the expression « black card » is the American Express Centurion® card, or « black card Amex ». It was launched in 1999 and created such a craze that other card issuers wanted to create their own luxury credit cards to reward their spending customers.
It's the era of the black card. Today, there are many alternatives to Amex Centurion for consumers, regardless of their income level and credit history. Many first-rate rewards cards have borrowed the black color for their best credit card products, and card issuers have found ways to give their most popular travel rewards cards a high-end look.
The Amex black card has helped launch the trend of metal cards, and nowadays many consumers have at least one metal card in their wallet. But a real black card is only available by invitation and was only designed for the most expensive people.
Who can claim a black card?
It is difficult to find precise information on the conditions for obtaining a black card. Some invitational credit cards, such as Chase J.P. Morgan Reserve®, are an additional benefit if your assets are managed by a particular bank, while others require you to hold a card with an issuer for a number of years.
There are also very high expenditure conditions. In general, a card issuer only invites its most loyal customers, who spend more than six digits or more a year, to become the holder of a black card.
According to the latest household income census report, the median income of U.S. households is $61,937 per year, making spending at a minimum of six digits out of reach. While the average consumer will probably never use black cards, there are now many affordable credit cards that offer welcome bonuses with spending requirements as low as 500 $.
What are the advantages of a black card?
Some of the rewards offered by black cards are similar to those you get with more accessible and high-end cards, such as the Platinum® card from American Express or the Chase Sapphire Reserve® credit card. These cards allow you to quickly accumulate points for travel, meals and shopping around the world, as well as other benefits such as exclusive access to lounges.
But the high-end benefits offered by ultra-elite black cards remain out of reach, even for those who are willing to pay an annual fee to access the best international travel cards.
The privileges of a black card include upgrades and special permits for rental cars and access to some of the most stunning hotel suites in difficult-to-reach destinations. Black cards also offer a private concierge service, and some are even known for offering charter jet service.
In other cases, the black card can help its holders adapt to the rigor of a very demanding professional lifestyle through services such as Royal Lifestyle Management, offered free with the Dubai First Royale Mastercard.
As for the original black card, the Centurion cardholders have access to the new Amex Centurion Lounge, which will open in March 2020 at Los Angeles International Airport (LAX). This lounge offers guests a relaxing place with a free full bar, spa services and high-end amenities.
However, Centurion customers will not be the only holders of the Amex card to have access to LAX's new Centurion Lounge. Holders of the Amex Platinum card, the Business Platinum Card®dAmerican Express, the Delta SkyMiles® Platinum American Express, the Delta SkyMiles® Platinum Business American Express, the Delta SkyMiles® Reserve American Express and the Delta SkyMiles® Reserve Business American Express can also use the lounge when they go through LAX, or one of the other 11 airports with Centurion lounges. (Note: Delta Skymiles Reserve card members can only travel to the Centurion Lounge when travelling on a same-day flight marketed or operated by Delta). The conditions apply.
How much does a black card cost?
The fees for these exclusive cards vary considerably. In the case of the Dubai First Royale Mastercard, the card issuer does not publicly disclose its annual fees.
The contracts of the Amex Centurion Black Card holders state that the annual fee is 5,000. $ and that there is a single initiation fee of 10,000 $.