The ABCs of using credit wisely

For better or for worse, plastic is the new money. The credit card has evolved from a payment option to currency in itself. No doubt about it, it has made life easier as you’re able to pay for something wherever, whenever — you don’t have to present cash immediately. And just about anyone can use some financial flexibility.

However, financial flexibility has its downside. "There is the misconception that your credit limit is an extension of your wallet," notes Cecille Fonacier, marketing director and head for Consumer eBusiness of Citibank Philippines. Which is why Citibank, the country’s leading credit card company, is teaching its customers (and prospective customers) how to use their credit cards wisely. For starters, there’s the lesson on limits.

The truth is, one’s credit limit is not one’s spending limit. Credit limit is the maximum amount that you can charge on your card. Spending limit, on the other hand, is the maximum amount you can spend before you go broke. Assume that these limits are one and the same and you end up spending more than you can ever pay for.

The good news is Citibank will not let that happen. Citibank believes that if you can take charge of your finances, you can take charge of your life. This is the message the company wants to impart to everyone, especially the young urban professionals. With its "Use Credit Wisely" campaign now in full swing, Citibank also plans to hold talks on school campuses regarding responsible credit card usage.

Owning and using a credit card need not be complicated or daunting. All you need to do is to learn Citibank’s new set of ABC’s. Here’s a smart guide to help you use your credit card efficiently and trouble-free:

• A is for advantages, because Citibank can be used in over 29 million establishments found in more than 100 countries.

• B is all about budgeting, something that can keep you out of a lot of trouble.

• C is for credit limit, which you must keep in mind with every purchase you make.

• D will tell you that you’ve got some discounts to enjoy.

• E is for electronic — anything you need to know can be asked by e-mail or SMS.

• F stands for fees which you will be charged with if you don’t pay on time.

• G is for good credit, something that will allow you to enjoy your Citibank card all the more.

• H is for hotline — Citibank’s got one 24 hours a day.

• I means interest charges, something else you will most likely get if you don’t pay on time.

• J means "Just keep it real." Knowing yourself means knowing your financial limits.

• K is a reminder to "Keep receipts." This way, you’ll know what to expect in your billing statement.

• L is for cases of lost card. If this happens, call Citiphone immediately.

• M is for the minimum amount due, which must be paid along with the spendings on your card.

• N is to remind you of certain numbers, such as your pin and t-pin codes. Keep them all to yourself.

• O reminds you that Citibank is online and you can access its website for further help and info.

• P tells you to pay on time.

• Q is for questions. If you’ve got any, don’t hesitate to e-mail or call Citibank Service.

• R is simply to remember. Do your best to remember all these tips from Citibank.

• S is for statement, specifically your billing statement. Read it and understand.

• T is for terms and conditions, something that you should be checking out, too.

• U is a reminder to update your contact details with Citibank the moment they change.

• V lets you know that you can reload cellular phone credits via Citibank.

• W is for welcome pack, like a "use credit wisely" bible that you’ll receive along with your Citibank card.

• X and Y are a reminder for you to "x out your due date!"

• Z is for that much-awaited zero percent, which certain purchases offer on a 0% interest Go Paylite basis.

Now that you know how to keep your credit card in check, it’s time to see which Citibank card matches you best. There’s the Citibank Clear Card, which allows you to pay your annual fee in monthly installments. This allows you greater flexibility in spending your hard-earned money. It also comes with privileges, which you can avail of in participating restaurants, bars, and shops.

For those who need to fill up on gas, there’s the Shell Citibank MasterCard that allows you to earn a three-percent rebate on all Shell fuel purchases as well as a one-percent rebate on all other charges. Meanwhile, if you’re a jet-setter, why not consider the Citibank Gold Card, Citibank Platinum Visa, or the Citibank Cathay Pacific Visa? All are sure to double your reward points each time you use your Citibank credit card of choice overseas.

But that’s not all. You get other perks including air miles, which you can turn into a free trip or an airline upgrade.

For those who regularly spend on health care, there is also the Mercury Drug Citibank Visa, which offers a two-percent rebate on all your purchases at Mercury Drug. It also entitles you to free annual checkups and dental coverage as well as discounts on Citibank’s partner hospitals. And lastly, there is the Citibank Cash Back Card, which gives cash rebates for all your spending needs. In addition, these rebates increase for as long as you keep your outstanding balance in check.

Yes, you can charge it, but be ready to take charge of your life, too. Visit Citibank at www.usecreditwisely. citibank.com.ph.