Credit cards have become an integral part of our financial lives. They offer convenience, rewards, and even status to the users. Nowadays, credit card issuers offer a wide variety of cards to attract customers – lifetime free credit cards with no annual fees, EMI cards that allow converting purchases into easy monthly instalments, and premium metal cards that exude luxury.
While they all serve the purpose of spending on credit, these types of cards have distinct features, benefits, and limitations that customers must understand to choose the one best suited for their needs.
Difference Between Lifetime Free Credit Cards, Metal Cards and EMI Cards
Here are the differences between these three types of credit cards:
1. Lifetime Free Credit Cards
- As the name suggests, these credit cards life time free have no annual, joining or renewal fees. Once you get the card, you can continue using it for life without paying any fees.
- They are easier to get approved for than premium cards. The eligibility criteria are more relaxed regarding income, credit score, etc.
- They offer basic benefits like cashbacks, rewards points, interest-free cash withdrawals, lounge access, etc., but the rewards are lower than those of premium cards.
- They generally have lower credit limits than other types of credit cards. The limits of these cards are entirely based on factors like credit history, income, and repayment habits.
- Examples: IDFC FIRST Bank offers Lifetime Free Credit Cards
2. EMI Cards
- EMI or Equated Monthly Instalment cards allow you to convert your large purchases into fixed monthly instalments (EMIs).
- They offer flexible tenure options, such as 3, 6, 9, 12, and 24 months, during which you can pay the amount due. This reduces the burden of lump-sum payments.
- The interest rate and processing fees for the EMI card are predefined. Depending on your card and eligibility, they may start from 10% p.a.
- The EMI facility has a pre-approved limit that you can utilise for purchases above ₹3000-5000 and up to 2-5 lakhs.
3. Metal Credit Cards
- Metal credit cards have an actual metal body, unlike regular plastic cards. The metal used is often titanium or stainless steel.
- They are premium cards with exclusive luxury benefits, such as higher rewards rates, unlimited lounge access, zero forex charges, and luxury hotel and travel offers.
- The fees for metal cards are very high. Annual fees range from ₹3000 to ₹6000. The eligibility criteria are also stringent.
- Their credit limits are based on individual creditworthiness.
- Examples: Ashva and Mayura metal credit cards offered by IDFC FIRST Bank.
Conclusion
Choosing between lifetime free, EMI and metal credit cards involves understanding your needs and financial situation. Lifetime free cards are suitable for first-timers and occasional users. Those who make big-ticket purchases often should consider EMI cards for the flexibility offered. Metal credit cards with premium benefits are suited for affluent users who have high spending capacity. Carefully assess the fees, rewards, eligibility criteria, and approval likelihood before deciding on the type of credit card to apply for. Having the right card that aligns with your spending behaviour is vital.
