Freebies that come with your credit cards (and why you should take advantage)

Millie Villanueva knows how to play her cards right – her credit cards, that is. When shopping with her husband at Nike Park, she flashes her Citibank Clear card to avail of a 15% discount, a deal that’s even better than paying cash. On her grocery trips, she switches to her Citibank Gold card to earn Rewards points she can exchange for free gifts.

"My friends tease me as being the expert on credit card perks. But I don’t see why we shouldn’t take advantage. My savings on discounts more than offsets my annual fees," she said.

With more and more credit card products to choose from, consumers are looking for more than standard services from their card issuers. "Before, consumers could be lured by another credit card company to switch simply by offering waived annual fees or low interest rates to settle their balances. These days, cardholders and their needs have grown and have become more sophisticated. Sure, they will take the free credit card but, if it does not fit their lifestyle, they will drop it within the year," said Citibank marketing director Cecille Fonacier.

And so the battle for freebies, perks and discounts have begun. Citibank, for instance, offers several products geared to a range of markets, depending on one’s income, age and lifestyle. First-time cardholders can apply for the Classic Visa or Mastercard or the Citibank Clear card, while the more affluent can choose from a Gold or Platinum card. Citibank has also tied up with industry giants to offer cards for travelers and motorists.

Distinct benefits

Aside from global acceptance and round-the-clock customer service, each card offers a distinct set of benefits.

A Gold cardholder, for instance, is automatically enrolled in Citibank’s Gold Exclusives program, giving him access to discounts in over 1,000 shopping dining, leisure and travel establishments here and abroad all year-round. Discounts can be as generous as 60%.

If you do a lot of traveling, you can enroll in frequent flyer programs. You can also count on your credit card spending to earn air miles towards a free trip or upgrade.

Nap Yu is a few Asia Miles short of taking his wife on a second honeymoon in Hong Kong this August. "That’s why I’ve been using my Citibank Cathay Pacific Visa for both business and personal expenses," he said. With all purchases convertible to Asia Miles, the Citibank Cathay Pacific Visa is being marketed as the credit card that gives members the fastest route to free travel.

Yu is also aspiring to own a Platinum card where every first class or business class ticket purchased will give him a free companion ticket. Other perks include complementary upgrade in major hotel chains around the world and discounts on dining, shopping and even golf holidays.

On top of the discounts, savvy cardholders can also enjoy interest-free credit for as long as 60 days. Aurora Go takes note of her purchase date before she chooses which credit card to use.

"I have four cards with different cut-off dates and I try to maximize the time between when I charge and when I have to pay by using the ones whose billing has just closed," she said. Because it takes as long as a month for the bill to arrive and another month before payment is due, Go can hold on to her cash a bit longer.

"This is why we spend a lot of time and effort in educating our cardholders. We want them to take advantage of all the perks we have built into their cards. More importantly, we want them to know a credit card is a payment tool they can use to their advantage," said Fonacier.

So when shopping for credit cards or choosing which ones to keep and which ones to drop, do it wisely. Weigh all the benefits these credit cards offer.