How to redeem your Citibank credit card points?

Citibank offers reward points for credit card spends on many of its credit card offerings. Generally, you get “x” number of reward points for every “RM y” spent on your credit card. You can redeem these reward points for a variety of gifts / rewards. We will look in detail how:

Examples of Citibank credit cards offering reward points

The Citi Choice Credit Card

This card enables cardholders to earn 50 Citi reward points for every RM 50 spent. However, reward points are not applicable for transactions like cash advances, GST transactions and payment of fees and charges. Reward points do not expire and can redeemed whenever the cardholder so wishes.

The Citi Rewards Credit Card

This is a 5x card, i.e., cardholders can earn 5x reward points for every RM1 spend. The 5x reward points can be earned through spends at major department stores and supermarkets. 5X reward points can also be earned on overseas spend. All other local spends earn 1x reward points. Again, earned reward points never expire so they can be redeemed by cardholders whenever they wish.

How to redeem credit card reward points

Credit card reward points can be redeemed for a variety of rewards including:

Gifts / Rewards

Cardholders can go to the Citi Rewards portal and check the gifts on offer. Gifts can be redeemed via CitiPhone Self-Service Phone Banking (SSPB) or online. Online redemptions cost lesser points. To redeem online, the cardholder needs to login to his/her Citibank account, click on the Rewards & Offers button at the top right, select preferred item and enter delivery details and confirm the redemption. Cardholders are also requested to retain the redemption number for reference.

Paying for retail purchases

Citibank currently has tied-up with over 1,500 merchant outlets where cardholders can pay for their purchases using their reward points. They will need to inform the cashier beforehand about their intention to pay using their reward points.

Even if the reward points are not sufficient to cover the complete purchase, the cardholder can use the reward points to offset a part of the purchase and pay for the balance using their credit card. Paying the balance amount by cash or through another bank’s card is not allowed. Redemption for retail purchases can be done only by the principal cardholder and not by supplementary cardholders.

Conversion to Air Miles

Reward points can be redeemed against air miles or points of frequent flyer and hotel programs which can in turn be redeemed for ticket or hotel bookings. Conversion online costs lesser points than converting through CitiPhone.

For example, a Citi Prestige cardholder can expect to convert 3,200 Citi reward points to 500 KrisFlyer Miles online or through CitiPhone. Other cardholders would need to redeem 3,500 reward points online if they expect to earn 500 KrisFlyer Miles and 3,800 reward points when redeeming through CitiPhone.

What Are Credit Card Types

What Are Credit Card Types

Banks have long since evolved from offering plain vanilla credit cards to specialized credit cards. These specialized credit cards, also known as credit card categories, cater to a specific set of cardholder requirements and needs by providing rewards and benefits tailored to those requirements. Here, we will try and explore the main types of credit cards available in Malaysia:

Cashback credit cards – These cards provide rewards in the form of cash rebates. A small percentage of the card spend is returned back either as cash, cheque or as a credit to the credit card account.

Air Miles credit cards – These cards enable you to convert card spends (on all or select categories) into Air Miles or Reward Points that can then be converted into Air Miles or redeemed against a range of rewards. The earned Air Miles can then be used on the airlines affiliated with the Credit Card to book tickets, get upgrades etc.

Rewards credit cards – These cards have enhanced Rewards Points programs on certain categories of spends or when shopping at select merchant outlets. These Rewards Points can then be redeemed against a range of gifts and benefits.

Petrol credit cards – Some consider them a boon for those not eligible for the Bantuan Rakyat 1Malaysia (BR1M)! Petrol credit cards are of two-types: multi-branded cards which provide discounts on petrol and related spends across multiple petrol stations and co-branded petrol cards which provide discounts only when used at the petrol outlets of the affiliated brand.

Business credit cards – Business credit cards are a great way for businesses including Small and Medium Enterprises (SMEs) to access credit for operational expenses, shore-up cash flows and help make purchases. Not just businesses even professional practitioners like doctors, dentists, lawyers and accountants can apply for and use these cards.

They help keep professional and personal expenses separate, provide a range of reporting and control features and offer specific rewards like business and supply discounts with vendors with whom the business regularly deals, extended warranties and business-related promotions.

Low APR credit cards – Every time you “revolve” the balance on your credit card, you are subject to high interest and other fees. Low interest credit cards are meant for those who are unable to fully repay the balance on their cards; they charge a lower amount on your balances in comparison to other cards.

Dining credit cards – These cards provide a range of deals and offers with a variety of restaurants and provide extra rewards in the form of enhanced rewards points, cashback or discounts whenever you pay with your Dining Credit Card.

Islamic credit cards – These cards operate on Shariah principles. These cards are generally based on the Shariah principles of Tawarruq (commodity contracts), Bai Al’ Inah (sale with immediate repurchase) or Ujrah (payment in exchange for services, benefits and privileges). Islamic cards generally do not levy compounding finance charges. These cards cannot be used for Shariah-prohibited (Haram) transactions like gambling, liquor etc.

Online shopping credit cards, student credit cards etc are some of the newly emerging credit card types.

What is Balance Transfer on Credit cards and How Should You Apply

What is Balance Transfer on Credit Cards and How Should You Apply

What is a balance transfer?

A balance transfer on a credit card happens when the outstanding balance on one credit card is transferred to another credit card, issued by a different bank (the customer should be the principal cardholder on both the credit cards).

The balance transfer process

Most banks in Malaysia have balance transfer programs to help them get more customers. You need to select and sign up for a balance transfer program with a bank different from the one which has issued your current credit card. Your outstanding balance will be transferred to your new credit card. And, you will get an interest-free / low-interest holiday ranging from 3 to 36 months.

To apply, you may need to fill up a balance transfer form, either after downloading it or online, and submit it along with required documents, including your last few credit card statements.

Benefits

▪ If you have an outstanding balance on a credit card that you are finding hard to meet, transferring the balance to another credit card will allow you to cut down on your interest payments. Banks generally charge pretty high rates of interest on balance rollovers. Balance transferring will get you a better interest rate; you will, hopefully, be able to take better charge of your finances.

▪ Diligently stick to the payments schedule post-the balance transfer and ensure your outstandings are paid in full and you could probably end up with an improvement in your credit scores.

Factors to consider

Tenor & Interest rate – Check out the interest rates applicable during and after the low-interest balance transfer period. It goes without saying that you should shop around for the best possible tenor and interest rates (zero interest) available.

Service Fees – There may be some upfront costs involved with your balance transfer. This may be in the form of service fees or processing fees and may be a percentage of the balance transfer amount. For instance, the Maybankard Balance Transfer Islamic Ikhwan Card from Maybank involves an upfront fee of 3%.

Credit limit offered – See if the credit limit offered by your new bank is sufficient to ensure complete transfer of the outstanding balance. If, for example, you can only do a part transfer of your outstanding balance, you will need to keep track of and manage payments for two cards. You could possibly end up with double the headache!

Shopaholic tendencies – A balance transfer program can contribute to get your finances back on track but only if you are able to control your swiping tendencies.

Some balance transfer programs in Malaysia

▪ The Maybankard Balance Transfer Program from Maybank offers you a repayment period of up to 36 months. Interest rates vary: 6% for 6 months, 9% for 9 months, 0% for 12 months, 4.5% for 24 months and 4.95% for 36 months.

▪ The Citibank Balance Transfer via Instalment Plan offers tenors of 6, 9, 12, 18, 24, 30 and 36 months with a flat interest rate of 5.32% to 5.81% pa which works out to an effective interest rate of 9.9% pa.

How Can You Protect Your Credit Card Against Misuse

How Can You Protect Your Credit Card Against Misuse

Consider these two pieces of statistics published by Bank Negara Malaysia:

▪ As on Nov 2014 there were more than 8 million credit cards in circulation and they accounted for 28.5 million transactions in November 2014 alone.

▪ As on September 2014 there were 17.2 million Internet banking subscribers and nearly 5.5 million mobile banking subscribers.

The first statistic attests to the popularity of credit cards while the second shows the popularity of Internet and Mobile banking. While there may not be exact figures it it reasonable to assume that the use of such a popular product like credit cards through online / mobile means has leapfrogged.

Both the popularity of credit cards and the rise of online / mobile ecommerce transactions has attracted fraudsters who try and exploit naive, unwary users and system vulnerabilities to make money. We’ve tried to put together a few simple measures to help credit card users guard against fraud / misuse both online and offline:

Measures against offline fraud

▪ As soon as you receive your card, sign on the signature panel on the back of the card.

▪ Keep your card details and PIN numbers confidential. Do not reveal these details to anyone, including those purporting to be from the bank, or on social/professional networking sites. Also, try not to write them down anywhere least you loose the info and compromise your security.

▪ Destroy and dispose of copies of receipts, airline tickets, travel itineraries or anything else that displays your card number in full.

▪ Check your cards wallet daily to make sure that none of your cards are missing.

Online security protection measures

▪ Keep your devices protected with the latest security updates and a strong anti-virus software.

▪ Shop online at reputable merchants and beware of authentic-looking websites.

▪ Use prepaid cards (they can be generated easily online for short-term, online use) for online shopping.

▪ Sign up for security verification systems like Verified by Visa or Mastercard SecureCode.

▪ Some banks provide extra layers of authentication in the form of security devices or personalized pictures during the login process. Use them, if available.

▪ Also, change your passwords/passcodes regularly.

Generally applicable security measures

▪ Keep regular tabs on your accounts. Most financial institutions now provide email and sms alerts, either free or at a nominal charge. Register for such alerts.

▪ Always keep your bank updated immediately in case of changes in personal information. This way you will be sure to receive information regarding suspicious activity on your account(s).

▪ Educate yourself in the ways of fraudsters and how they use emails, websites and phone calls to lure victims. Almost all the banks in Malaysia have sections on their website, and send regular updates, on how to securely transact online and identifying and responding to fraudulent approaches. In addition, the Bank of Negara and the Malaysian Cyber Security Agency also have informative sections on identifying and dealing with fraud. Take the time to read through them.

▪ If you become a victim of fraud, it is important that you report the incident immediately to your bank or contact the Malaysian Cyber Security Agency – http://www.cybersecurity.my/en/index.html

Tips While Using Your Credit Card For Shopping

One of the most popular uses of a credit card is for shopping or retail spends. Shopping can be a great joy especially when you throw caution to the winds and indulge to your heart’s content. But while the joy of shopping can tend to ephemeral dealing with the rather substantial hole in your pocket can be a continuing nightmare. Here we’ve tried to put together a few pointers to help you make the most of your credit card shopping sessions:

Analyze your spending patterns…

List all your monthly spending. As a first step try and categorize your spends under “essential” and “non-essential”. Its ok to have some non-essential spends; we’re human, after all. But if these spends seem to occupy a rather large portion of your budget, then its time you exercised a firm hand and reined them in.

Once this is under control, your next step would be to categorize your spends. Use categories like groceries, fuel, medical, public utility, apparel, travel, dining and entertainment etc. And finally use a few months data to identify those categories that consistently rank as your top spends.

Chose a credit card accordingly

There are various types of credit cards – petrol cards, travel cards, cashback cards, co-branded shopping cards, dining cards etc. Align your high-spend categories to the type of credit card you have in your wallet and you are well on your way to making the most of your credit card(s).

Don’t forget to check out the rewards on offer

Almost every credit card out there offers a host of rewards. Reward points, cashback, rebates, perks and privileges, complimentary offers etc. Its not just the issuing bank, card affiliates like Visa and Master are also doing their best with a host of offers, to pull you in! So, try and synchronize your high-spend categories to a card category to a highly “rewarding” card and you have an awesome threesome!

Using multiple cards

Kindly note: This is only for the advanced (read: disciplined) credit card user.

You’ve done the threesome-awesome, you settle your card bills in full, yet you feel that there is more to harvest. In that case, consider this: if you are maxing out on the rewards on your card but there is still some gas leftover in your high-spend categories then try going in for another same category-high rewards card, this time from another card issuer. You could possibly earn a little more from your unutilized high-category spends.

Tips while using your credit card for shopping

Things To Check For Secure Credit Card Use

Things To Check For Secure Credit Card Use

Credit cards have become an important means of payment for many users due to the convenience and benefits they give. However, ensuring safe and proper use of your credit cards is also important to prevent fraud and misuse. We’ve tried and listed out some safety measures for you to follow at various situations:

Receiving your card / PIN– Your new / replacement card should arrive in a sealed package; your credit card PIN will be sent to you in a sealed envelope at a date later than when you received your credit card. If the package / envelope is compromised, contact your card issuing bank immediately.

Transactional security – Here is a collection of tips to ensure your card’s security when you use it at a retail outlet:

▪ Make sure your credit card (not someone else’s) is returned to you promptly after you’ve paid for a purchase

▪ Check the sales slip to see if your name and card details are in order, sign it and retain your copy

▪ Sign up for SMS / email credit card transactional alerts

ATM transactions –

▪ Use ATMs at well-lit and well frequented spots

▪ Make sure that there are no suspicious devices attached to the ATM

▪ Check that there is no one observing when you enter your PIN and

▪ Retain your card after use

Online shopping –

▪ Shop only at trusted merchants

▪ Sign up for the free Verified by Visa or MasterCard SecureCode for additional protection

▪ Use prepaid cards

Device security –

▪ Ensure your computer / mobile are protected by strong passwords

▪ Be aware of and in control of how your computer / browser / mobile app stores, retains and uses information

▪ Be cautious while responding to genuine looking links / emails / SMS

▪ Download banking apps only from the location prescribed by your bank

Loss/theft of credit cards – Promptly report loss or theft of your credit card to the card issuer and follow their instructions.

Credit card statements – Upon receiving your card statement, check your sales slips against the transactions listed on the statement and report any discrepancies immediately to your card issuer.

Identity theft – Identity thieves steal your identity and impersonate you to gain access to your account. Here are some ways in which you can protect your identity:

▪ Sign your card immediately upon receipt

▪ Do not disclose PINs or passwords and change them regularly

▪ Do not share your personal / card information with anyone unless for legitimate purposes and to a legitimate person

▪ Safely and effectively dispose of any documents containing your personal / card information

▪ Keep yourself updated about devices and techniques used by fraudsters and stay alert

Tips to choose right credit card for your financial needs

Getting familiar in a credit card world

Going in for your first credit card or adding to your existing one(s)? Well, here are the tips & tricks to get you the most ideal card. Be more aware. Don’t just fill out the first application form that you’ve been given and never sign-up for that pre-approved credit card you got by mail. Know your priorities right. Get into the driver’s seat and keenly decide on the one that can make available the products and services you need and provides the rewards and incentives that benefit you most.

First, be sure that you are prepared mentally and financially to own a credit card and the luxury and baggage that it come with. Familiarize yourself with the jargon and how it works

Have abundant information and insight about the world of credit cards . Although bank representatives will most likely be willing to explain to you these terms, it’s more beneficial to know in advance so that you’ll have more time probing about card details and less time requesting for definitions.

A few useful terms:

• Finance Charge Rate – the interest rate that is applied to your balance if you fail to pay within the grace period. Multiply this by 12 and you get the Annual Percentage Rate. Philippine credit cards average around 3% for the monthly rate.
• Grace Period – the number of days where you can pay your credit without interest, sometimes referred to as the Billing Cycle. In the Philippines, the usual grace period is 30 days.
• Annual Fee – the amount you pay for maintaining the credit card. This is automatically billed into your card, usually as monthly charges. Normally waived for the first year. Averages at P100 a month.
• Credit Limit – the total amount you can spend. Normally based from your credit history and financial status as assessed by the credit card company.
• Rewards – benefits you can avail from being a member. Generally works as a point system which you can later exchange for free items and services. Other incentives includes discounts in partner establishments and cash rebates.
• Cash Advance Fees – the interest rate that’s automatically billed when you avail of a cash advance from your credit card. Philippine banks usually charge around 3%.
• Late Charges and Penalty Fees – the interest rate that is applied to your balance or a fixed amount that is added to your bill if you fail to pay the minimum required on or before the billing due date. This is higher than the finance charge rate and averages at 5%.