Visa Black Card from Barclays May Not Be that Exclusive

Exclusivity is one way to generate buzz about your product, and Barclays has definitely taken advantage of this fact with the Visa Black Card. Billed as “the world’s most prestigious and versatile credit card,” the Visa Black Card is advertised as being available to only 1 percent of U.S. residents.

Some of the features included with this credit card are 24-hour concierge services, an exclusive rewards program and unspecified “luxury gifts.” However, the rewards program seems similar to those offered by other rewards credit cards, offers 1 percent cash back on all purchases, and is used for airline tickets and travel.

The Visa Black Card also offers a 0 percent interest rate for the first six months on balance transfers, which might appeal to those who need to consolidate some of their debt. The APR is higher than you would find on many other cards, however, and currently stands at the prime rate plus 9.99 percent. Many premium and platinum credit cards offer a 0 percent APR for 12 months on purchases and balance transfers.

Additionally, the Visa Black Card from Barclays comes with a hefty $495 annual fee. It is difficult to say whether consumers will benefit from this card at all, since the total rewards must exceed this high annual fee.

The exclusivity of the Visa Black Card has come under scrutiny in the media, which has questioned whether there is actually a limited membership at all. LuxuryPlastic.com surveyed several approved Visa Black Card holders, and the differences in income and credit score seem to back up the skepticism.

For example, one customer earns six figures per year with a credit score of 765, while another’s annual income is around $10,000 with a credit score in the high 500s. The discrepancy, combined with the rumors of easy qualification, call into question whether Barclays’ Visa Black Card is actually exclusive at all.

When shopping for credit cards, it is important to look past fancy Web sites and claims of exclusivity to the actual terms of the card. Financial institutions are all fighting for the best customers, and it is best to make your decisions based on raw numbers rather than skillful marketing.

It is also important to note that, although the Visa Black Card is billed as “limited membership” and “very exclusive,” the Visa Signature line of credit cards is actually ranked above the Visa Black Card, which is part of the Visa Platinum Plus line. Consumers with solid credit scores are often approved for low-interest credit cards with no annual fees and generous rewards programs.

Steve Thompson