Credit Cards Types You Should Know

Credit cards are known as a cashless payment option for various transactions around the world. In general, credit cards are popular non-cash payment instruments because they have a very practical function as a substitute for cash, and can be used for transactions wherever you are.

You can use a credit card for transactions to pay for any of your purchases without having to have a certain amount of money first. But later, you must pay off the amount of money that has been used along with interest by installments according to the desired time period.

With the development of people’s habits of online shopping and cashless transactions,  this has caused credit cards to be increasingly in demand and payment methods using credit cards are growing rapidly.

Credit Card Benefits 

Credit cards have important benefits in terms of payments and are more practical to carry. People no longer need to carry a lot of cash for shopping. This is considered ancient and dangerous because it can cause evil intentions of the people around him. But what exactly are the benefits of a credit card?

  • Shopping Online transactions are made easier. 

If you want to shop online at foreign or domestic stores, paying with a credit card can be easier. Moreover, almost all online shopping sites accept payments using credit card. Take advantage of low interest offers or 0% installments if any.

  • Lots of promos and discounts

When it comes to promotions and discounts, credit cards are always at the forefront and certainly provide benefits for your finances. All types of credit cards from issuing banks have various discounts and promos. Always take advantage of this so that your expenses are more efficient.

  • All expenses are recorded 

Transactions with credit cards will benefit you because all expenses will be recorded and listed properly. You just have to check and re-check what your monthly transactions are

  • Credit card points can be exchanged for traveling

Did you know that there are types of credit cards that have a point collection feature where these points can be exchanged for airline miles. So you can save more traveling by exchanging credit card points to buy tickets or discounts on economy or business class airline tickets.

Types of Credit Cards 

Choose a credit card that suits your wants and needs. This is important so that you can be happier and get many benefits from the credit card.

The following is a complete review of the types of credit cards that are distinguished by credit limit (limit ), applicable area, and affiliation.

Types of Credit Cards Based on Limits

For example is Infinite Visa Credit Card via wlth.com

Credit cards with Visa and Mastercard providers are the most widely used card types in the world Indonesia.

The payment method can be done in installments or pay at once. The amount of installments paid is calculated from the balance of the bill and added with monthly interest.

This payment must be made no later than the due date of each month that has been determined by the party that issued the credit card to the cardholder.

Late payment can result in fines or late charges . This type of credit card can also be used to make cash withdrawals either through tellers or ATMs.

Visa, divided into 5 tiers:

  1. Visa Classic
    This credit card is a credit card with the lowest limit, both for shopping and features. Generally, the transaction limit or maximum limit is IDR 5 million , this limit is not much different from the transaction limit issued by national banks.
  2. Visa Gold
    This type of credit card is more exclusive than Visa Classic because it is added with several discount features from several merchants and a higher credit limit. This card is owned by people who earn around IDR 5 million to IDR 25 million per month. The credit limit or maximum visa gold limit reaches up to IDR 100 million , this limit also depends on the policy of the credit card issuing bank.
  3. Visa Platinum
    This one credit card is generally used by business people for prestige. To have this card, users must have an income of around IDR 25 million and above per month, or a minimum of IDR 28 million. While the credit limit or maximum limit starts from Rp. 75 million to unlimited ( unlimited) .
  4. Visa Signature
    This credit card is very exclusive and only owned by a few professions such as entrepreneurs, top lawyers, leading doctors, and well-known professional accountants. It is still seen even more income. The maximum limit starts from IDR 100 million to unlimited . There are several additional facilities such as an airport lounge to travel assists and golf membership .
  5. Visa Infinite The Visa Infinite
    credit card is not offered to the public. This exclusive card is owned by some people who have assets above US $ 100 thousand in cash. Credit limits or limits start from IDR 50 million to unlimited.  But generally up to Rp250 million, depending on the amount of money you save. The more money you save, the bigger the credit limit. Some of the facilities offered by this credit card include travel assist , travel insurance, private jet booking , to special priority pass .

Mastercard, divided into 4 levels:

  1. Mastercard Classic
    This type of card is not much different from that issued by Visa. Mastercard Classic gets a  credit limit of up to IDR 5 million . Meanwhile, the owner must earn a minimum minimum wage of up to IDR 50 million per year.
  2. Mastercard Gold
    This card is above the Classic type. Not much different from Visa, Mastercard Gold has a  credit limit of up to IDR 100 million . While the minimum income standard is also not too much different from Classic. However, the monthly fee is higher.
  3. Mastercard Platinum
    Mastercard’s platinum credit cards usually offer more features. The minimum credit limit is not too much with Visa Platinum, starting from IDR 75 million to unlimited , depending on the user.
  4. Mastercard World
    Mastercard World is almost similar to Visa Infinite. However, every year the minimum usage must be IDR 75 million. If the user makes a minimum credit transaction under Rp75 million, the user will be charged an annual or monthly fee which will be adjusted by the policies of each issuing bank.

Best Credit Card Products

  • For new users

Generally, the type of credit card with a minimum transaction limit of below Rp. 10 million is suitable to be chosen as the first credit card for new users, aka users who have never had a credit card.

Examples of the best credit cards with a maximum limit of IDR 10 million include: BCA Visa Gold, BRI Touch Visa Gold, Mandiri SKYZ, UOB YOLO Card, CIMB Niaga MasterCard Gold.

  • For experience users

Generally, credit card users who have  a fairly good track record of using credit cards should have a credit card with a minimum limit of between IDR 10 million and IDR 30 million. The benefits obtained will increase, for example a credit card with a point collection feature to be exchanged for airline miles .

Examples of the best credit cards with a limit below or a maximum of IDR 30 million include BCA Singapore Airlines Visa Signature, DBS Travel Platinum, CIMB Niaga Visa Platinum, UOB Preferred Platinum, Mandiri Visa Platinum.

  • For users trusted by the bank

Those who are considered as trusted customers by the bank can generally have a credit card with a limit above Rp. 30 million. All types of credit cards with a minimum limit of IDR 30 million or above include credit cards that have a point collection feature to exchange airline miles.  

Examples of the best credit cards with a limit equal to or above IDR 30 million include BCA Singapore Airlines Visa Infinite, Mandiri Visa Signature, UOB PRIVI Miles, Citi Prestige, DBS Travel Visa Signature, HSBC Visa Signature, CIMB Niaga JCB Ultimate.

  • For priority customers

For those who are included in priority customers, or preferred or private banking , they can have a special credit card or credit card with an initial limit value which generally depends on the AUM (asset under management) of the bank.

This special credit card is usually called a credit card for millionaires, here are examples.

– MasterCard World Priority Mandiri Card. This type of card is only intended for priority customers at Bank Mandiri with a minimum AUM of IDR 1 billion.

– HSBC Premier MasterCard World card. This type of card is only for priority customers at HSBC Bank with a minimum AUM of IDR 500 million.

– CIMB Niaga Visa Infinite Preferred Card. This type of card is intended for priority customers at Bank CIMB Niaga with a minimum AUM of IDR 500 million.

Types of Credit Cards Based on Applicable Area

Example of a National Credit Card via observe.com

  • National Credit Card

This credit card is only valid and can be used in certain areas, such as only valid in Indonesia. In fact, affiliated companies issue their own credit cards for more practical and efficient services for their customers.

Examples of companies that cooperate with their own credit card issuing banks are Hero, Astra, Garuda, Carrefour, Lotte, etc.

  • International credit card

This type of international credit card can be used as a means of payment that is valid throughout the world.

This credit card market is dominated by two global credit card brands, namely Visa and Mastercard . Both have more than 100 million cardholders spread across the globe for each company.

This international credit card can be used for transactions at merchants with the following logos:

– Visa
– MasterCard
– Dinners Club
– Carte Blanche
– American Express

Also Read:  6 Smart Tips for Using Credit Cards.

Types of Credit Cards Based on Affiliates

For example of Affinity Card via observe.com

Is a type of credit card issued in collaboration with the management institution with several banks. Examples are Visa and Mastercard.

  • Affinity Card

Is a type of credit card used by a certain group of people, such as students. An example is the BNI credit card that works with universities throughout Indonesia.

Also read:  6 Ways to Keep Credit Cards Safe

Make the Most of Credit Cards

As a credit card holder, you should learn how to take advantage of the various benefits of a credit card. By understanding the types of credit cards and their benefits, you can determine which credit card is best for you. So you won’t go wrong.

As an illustration, if you like traveling, then you should choose a credit card that provides many benefits such as exchanging credit card points to exchange for airline miles.

On the other hand, if you like shopping, choose a credit card that offers many promos at many merchants. Congratulations on choosing the best credit card!

Also Read:  12 Credit Card Fees You Need To Know.


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