Professor Aniruddha Pangarkar featured on Wallethub Expert Opinions Section
Recently, Professor Aniruddha Pangarkar was featured in Wallethub’s Expert Opinions section, regarding the topic of metal credit cards. Here is what he had to say on the topic:
Are there any advantages/disadvantages to having a credit card made of metal?
In recent times, we have seen that the ubiquitous plastic cards have slowly started getting alternatives in the form of metal cards. Consumers are thus getting options in the form of these premium credit cards which look elegant, demonstrate power and prestige, possess stronger durability, and are highly appealing in terms of their look and feel, which signals membership of higher-status groups and wealth. On the other hand, there are certain disadvantages associated with metal cards. They are not easy to shred or dispose of in comparison with plastic cards, are not as light as plastic cards, which means one needs to account for a slightly heavier load in the wallet, and often have higher annual fees because of the associated attributes with such cards, such as higher sign-up bonuses, greater rewards, etc. As can be seen, there are pros and cons associated with metal cards.
Why do you think some credit cards are made of metal and others are not?
One of the biggest reasons to make metal credit cards is durability, which means they are less likely to get damaged due to water exposure or regular wear and tear. Another big reason is that metal cards are visually appealing and look aesthetically pleasing, which confers elite status, prestige, and greater social status on the individual that possesses them. A lot of credit card companies and banks want to enhance their customer experiences and appear innovative, given the fact that the credit card industry is intensely competitive. Through issuing metal credit cards, a feeling of brand coolness, exclusivity, and uniqueness is created that appeals to many credit card users who switch to metal cards from plastic ones.
What advice do you have for someone who wants to apply for a metal credit card?
I strongly advise people that it does not matter whether the credit card is made of metal or plastic—what does matter is whether it is suiting your needs and requirements. If you like a particular credit card, then go for it without worrying about the metal or plastic debate. If you are the kind of person that is concerned about social status or demonstrating power and prestige, there are other ways to do it. Choosing the right credit card can save you a lot of money in the form of sign-up bonuses, rewards, etc. over a period. Therefore, please do your own research, compare and contrast, and see your own unique needs (if you are a frequent traveler and accumulate miles to redeem for hotel stays, airline ticket vouchers, etc.). The type of card—plastic or metal—should not be a prime consideration.
Do you think there are not any metal credit cards for people with no credit/bad credit?
Typically, metal credit cards are synonymous with people that are wealthy, elite, and status-conscious. Given the fact that the annual fees for metal cards are often very high, it is not very practical or pragmatic for someone with low/bad credit or no credit to apply for such a card because they would likely spend more money on credit card fees than the possible benefits accrued from possessing a metal card.
Does it matter what material a credit card is made out of?
As mentioned earlier, the actual focus should be on the benefits the card offers rather than whether it is made of plastic or metal. However, credit card customers are heterogeneous (dissimilar) in their needs, wants, and desires, rather than homogeneous (possessing similar needs and wants). Because of this heterogeneity, there are certain customers that prefer stronger durability and robust cards made of metal that appeal to those in their network and peer circle, thus conferring exclusivity, social status, and distinctiveness.
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