Tag Archives: Credit Card Application

Visa Vs MasterCard: Which Is The Best?

Are you looking for a new credit card in Indonesia? Which one to buy? Visa card or MasterCard? Confused? Well, don’t you worry as this article will come in handy to deal with your bafflement.

But to begin with, let’s understand that neither MasterCard nor Visa card issues or distributes credit cards. The credit cards themselves are issued by the bank. Both MasterCard and Visa card are networks utilized to process payments between banks and merchants for purchases made via cards.

Before we take a deep dive into the differences between the two payment networks, let’s clarify the two; MasterCard and Visa card share more similarities than differences. Both Visa card and MasterCard offer added perks like fraud security and payment protection to their cardholders. When it comes to taking a final call on which one to choose, it is recommended to consider that what the issuing bank is offering in a credit card.



Both Visa card and MasterCard offer worldwide acceptance so it is advisable to consider the following details for each card before deciding on your credit card application:

  1. Annual Fees

The annual fee charged on a credit card varies from bank to bank depending upon the features available or perks covered by a credit card. Therefore, you’ll be expected to pay higher annual fees for Visa Platinum, Signature and Infinite cards as well as World MasterCard because these cards offer premium features to its cardholders.

  1. Interest Rates

The interest rate paid on a credit card plays a significant role in deciding on the cost of the credit card. So, consider both the purchase rate and the cash advance rate for each card before deciding on the final one.

  1. Interest-free Days

On clearing your credit by the statement due date, the issuer offers an interest-free period, such as “up to 30 days interest-free”. You can make purchases without bothering about the interest. So, it is worth noting the number of interest-free days that a bank offers.

  1. Rewards

If you are planning to go for a reward card then do consider the type of rewards available, the earn rate and your average card spending so that you can gauge if the annual fee being charged is worthwhile or not.

  1. Complimentary Extras

Many a times, Visa card and MasterCard offer complimentary services like complimentary insurance, airport lounge access, flight vouchers and concierge services. These services add to the value of the card. So, choose wisely after scanning the fine print of every card.

  1. Introductory Offers

Credit card offers features like 0% balance transfer, bonus points and 0% purchase rates for an introductory period which can add value to your card for a short-period of term.

  1. Security Services

Apart from the security services offered by Visa card and MasterCard, the issuer of card may offer 24*7 fraud monitoring services, temporarily locking the card on being misplaced and daily transaction limits.

It will be difficult to vouch for one of the two payment networks but we recommend you to go through the aforementioned details before going for a credit card application.


What type of credit card is best for me?

Without cash in the wallet, our purchasing power is enhanced through the credit cards because these cards expand the purchasing power above the fund deposited in the bank account. However, the freedom for additional spending has its price. In other words, the credit card loan interest rate is the highest in the loan space.

Every month, a bill with comprehensive transaction details is sent to the credit cardholders, requesting to pay on time. Paying the credit card debts on time can fetch you umpteen numbers of benefits, while failure to the repayment may end up in disastrous debt. By carefully managing the debts, you can enjoy the interest free loan. With oodles of credit card types on the table, choosing the right credit card that blends with your needs may work like a charm.


All the cards in the market come under the following six categories. Check and find out which category blends with your spending patterns and also ensure if you can pay the bills without any delay, before applying.

Rewards Card

Rewards card may come in the form of Cash Back Cards, Loyalty Cards for shopping and Air miles cards for travellers. These cards are availed to people who maintain top notch credit scores. It is ideal for customers, who repay the credits every month, without fail. If the balance is not paid off, the accrued benefits will be cancelled and added to that, a heavy interest has to be paid for the default in payment.

Credit Card Loans

Many credit cards come with 0% interest for the purchases that are paid through the cards. It is the quick loan online and requires repayment, before the due date. The default in payment may perk up the interest up to 2.5% per month. If you intend to buy a bigger or expensive gadget and cannot pay within a month’s time, this type of card is ideal for you, as the interest free period may extend up to 2 years or more.


To close the current debts on the credit cards, go for a card that offers the balance transfer facility, at 0% interest. Similarly, if the current interest rate is higher compared to another credit card in the market, be ready to pay the penalty amount and make a transfer.

Improving Credit Score

The credit card issuers want to help people who struggle to pay off their debts on time. Prompt payment made on every month is encouraged with 10% interest amount in Citibank Indonesia. Eventually, there is an increase on the credit score and hopefully, it helps to be eligible for a premium card.

Multi-Currency Operations

If you have business in other countries or want to protect your savings in a foreign currency or any other reason for multi-currency usage, go for cards that allow international transactions.

Other Cards

The reputed Indonesian banks like Citibank offers reward points to pay the Telkomsel bills; rewards to pay the local transportation through Garuda Indonesia card; and a lot more.