The Legendary Black Card Explained

It is important to note that no matter what color credit card you sign up for, in order to keep your finances and your credit rating out of the red, you must spend wisely.

If you know what a credit card is and you listen to rap, follow celebrity gossip, or have dreams of becoming massively wealthy one day, chances are you know what the Visa Black Card is. Even the mention of this exclusive card is enough to make you wonder just how rich you have to be to get your hands on one. After all, there’s all this hype about the card that contributes to its mystique. Read further to unpack just how exclusive the card really is. Is it really that hard to get? What real perks does it offer?

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In order to fully understand the Black Card and the celebrity status it promotes, you should understand the basic fundamentals of credit cards. Credit is an equation and it has two sides — the lender and the borrower. Having the ability to borrow money when you need it gives you flexibility and peace of mind. Still, and all too often, individuals borrow more than what they actually need and fail to pay it off. If you understand that you are being charged money to actually use this credit, many people might think twice before pulling out their plastic. If you understand how credit works, use it only when you need it (to stand in for cash you already have in the bank) and avoid having too much debt, you can call yourself financially responsible.   Many young people don’t realize that responsible use of credit can actually help a person reach their goals.

Basic terms you should be familiar with: Creditors and Debt. Those who lend you money are called lenders or creditors; the money you owe is called debt.

Back in the 1980’s, in the era when Gordon Gekko famously said in the movie “Wall Street” that “greed is good,” rumors were that there was a credit card issued by American Express that was capable of purchasing anything anywhere. An urban legend, the card was nearly impossible to get and was all black. In other words, it had no credit limit. Just to give a reference point, most credit cards range between $500.00 and $4,500.00 depending on your credit rating to start. Some banks won’t issue a credit card to a potential borrower with poor or no credit, for fear they will not be able to pay back the debt.

 

Black Card members have an average of around $16.3 million in assets and a household income of $1.3 million. But just because you meet those criteria, you still are not guaranteed an invitation. Your credit rating and spending habits will also be carefully studied to see if you are the right candidate for the card.

Instead of letting fantasy live in the minds of would be big spenders, in 1999, American Express decided to bring that dream to life. They took the elements of a powerful credit card and made a card that reflected all these from the color to the exclusivity. They called it the Centurion Card, but it more popularly known as the Black Card. Other creditors followed suite and issued exclusive Black Cards bearing their insignia.

So where do these celebrity flaunted cards with infinite spending power come from? What are the Black Card’s features? Who gets these cards? The fact is that not everyone can get the Black Card. The card is issued out by invitation only. You not only have to be affluent to be invited, but you have to be extremely rich. You’re not just in the who’s who social circle, you have to be part of the social elite.

A quick figure to help you understand: Black Card members have an average of around $16.3 million in assets and a household income of $1.3 million. OK, but just because you meet those criteria, you still are not guaranteed an invitation. Your credit rating (how responsible you are with your money) and spending habits will also be carefully studied to see if you are the right candidate for the card.

Once you are vetted, one of these creditors MIGHT send you an invitation to own a card. You might jump at the chance, thinking that it is just like other credit cards that offer incentives like free membership and zero fees. But in realty, the Black Card will charge you with massive dues and in some cases an initiation fee for those who wish to sign on with the card (in the United States, the fee is $7,500). In many cases there’s also an annual fee of $2,500.

Since the vast majority of us will not actually handle one of these cards, it’s fun to imagine what exclusivity feels like. For starters, the card is black and made of anodized titanium. Your information and numbers are imprinted in carbon fibre. The hard texture of the card actually makes it “clink” when one places it on the counter.

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The proliferation of the Black Card’s mention in pop culture, brings to the surface the power trip associated with such cards, namely the Visa Black Card. One of the big draws for the card it it’s concierge service.  Imagine going on a spur of the moment vacation in  a private jet, with drivers lined up to take you from the airport to a local hotspot for some early partying before whisking you, and any new friends, to a world class dining experience.  Nice, huh?

It’s a good thing to use credit wisely and to not spend beyond your means. An overlooked fact is that credit card companies want your business, because they make a profit when you borrow. Although purchasing something, anything, with a credit card is easy, it is a practice that can come back and bite you in the end. It is important to note that no matter what color credit card you sign up for, in order to keep your finances and your credit rating out of the red, you must spend wisely.

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Lesson tags: Article, Black Card, Credit, Credit Cards, Debt, Economics, Eighth, Featured, Financial Literacy, Interest Rates, Math, Ninth, Tenth

Jacqueline Novak

Jacqueline Novak Jacqueline’s is an experienced educator at both the middle and high school levels. She is currently studying Adult Learning Theory and prides herself on her ability to relate to learners of all ages. Prior to joining the NuSkool team, Jacqueline was a 7th grade Humanities teacher with Boston Public Schools. During this time she created new standards-based curriculum guides and developed lessons that engaged her students. Jacqueline received a BA in English from McGill Univ. and an M.Ed in Curriculum and Instruction from UMass-Lowell.