Giant-Citibank Credit Card - worth it ?

Hi,

Citibank had done it again ! After UOB had partnership with Carrefour via UOB One card, it's time for Citibank to co-brand with Giant hypermarket. Currently, there's promotion for applying the Citibank card too !



You not just get 1 but 3 offers namely
1. 10% purchase rebate for 1st purchase before 31st August 2008
2. 1 year free waiver (subsequently, RM90/year)
3. Get Olympus Digital Camera (FE-330) at RM349 (Need to include RM50 for delivery charges)

Other key features
1. 2% rebate on purchases made at Giant Malaysia
2. Get up to 1% rebate on spending outside Giant stores (except Fuel)
3. Purchase with purchase programs
4. Members only items

Something you might want to consider (Terms and condition)
1. Rebate may not apply for all purchase especially fuel
2. Maximum rebate of RM50 are available for 1st purchase
3. Existing Citibank card holder need to convert to Giant-Citbank card to enjoy these offer. You cannot carry forward your point to this card
4. The rebate you get for the 1st time purchase are in the form of voucher, delivered via your monthly statement (up to 8 weeks) and need to be used by 31st August 2008

No.	Spending Amount (RM)	Number of Voucher in RM5 denomination each
1.	50 – 99	1.
2.	100 – 149	2.
3.	150 – 199	3.
4.	200 – 249	4.
5.	250 – 299	5.
6.	300 – 349	6.
7.	350 – 399	7.
8.	400 – 449	8.
9.	450 – 499	9.
10.	500 and above	10.

5. 2% rebate exclude purchase from Cold Storage and Guardian shop

In conclusion, the offer is not as rewarding as other co-brand credit card in the market. Some credit card can offer up to 1.5% for utility payment and 5% for fuel. Unless you need to buy the Olympus camera or spending a lot on Giant hypermarket, you're better of trying with UOB One (Rebate starting from RM4 with minimum purchase of RM100 and above - per RM50 transaction). For list of merchant, check it out here.

Credit card tiered interest rates and its implication on calculation of outsanding balance

Do you know that beginning July 2008, there's some changes towards your interest rates in your credit card ? According to BNM directive issued last year, you'll be offered a better credit interest if you're a good paymaster. The purpose of this was to promote prudent financial management and inculcate good financial discipline among credit card users in Malaysia.

According to BNM, on average, one-third of credit cardholders use their credit cards as a payment instrument, settling their credit card outstanding amount in full every month. More than half of cardholders pay at least the minimum amount due promptly and roll over the remaining balance. For the benefit of credit card users who have a good track record of settling their credit card balances which are due each month, promptly for 12 consecutive months, the finance charge will be reduced from the maximum of 18% per annum to not more than 15% per annum. The ceiling rate of 18% per annum will still be applicable for other cardholders.

The rate are as follows
1. With prompt minimum repayment for 12 months within 12 consecutive months.
You will enjoy 15% per annum of the total outstanding balance from the 13th month.
2. With prompt minimum repayment for 10 months and more within the last 12 consecutive months. You will enjoy 17% per annum of the total outstanding balance from the 13th month.
3. Credit cardholders who do not meet the above criteria. You will be charged 18% per annum of the total outstanding balance.

In addition, with the introduction of the tiered interest rates, the following fees will apply
1. Late Payment Fees - Minimum of RM10 or 1% of total outstanding balance as at statement date, whichever is higher, capped to a maximum of RM100.
2. Interest Free Period for Retail Transactions - A 20-days interest free period on all retail transactions, provided all outstanding balances of the previous month, as per the monthly statement, are fully settled.
3. Where the Interest Free Period is not applicable, finance charges as per applicable tiered rate per month will be levied on all retail transactions from the date the retail transactions are posted.

Note: Retail transactions exclude Cash Advance, Balance Transfer and any other credit plans.

That meant you'll won't be enjoying any 20 days interest free period for your current purchases if you have previous outstanding balance ! In addition, late payment fees have been increased from min RM5 to RM10 (or 1% whichever is higher) really a blow to consumer if you forgot/late in paying your credit card

To further understand this implication, here are some illustration
Illustration 1
Cardholder A has an outstanding balance of RM1,500.00 at the end of February 2007 and only repaid a sum of RM500.00. Cardholder A’s March 2007 Card Statement reflects the balance of RM1,000.00 rolled over from February 2007. Any Card Transaction performed by Cardholder A in the month for March 2007 will not enjoy the benefit of the Interest Free Period.

Illustration 2
Cardholder B has an outstanding balance in his Card Account for September 2007 but settles all outstanding balances in October 2007. Cardholder B’s November 2007 Card Statement shows no outstanding balance carried forward. Subsequently, Cardholder B maintains an outstanding balance for November 2007 and repays in full in December 2007. Cardholder B’s January 2008 Card Statement shows no outstanding balance carried forward. Cardholder B enjoys Interest Free Period for all Card Transactions performed in November 2007 and January 2008.

7 Swipes gets you a return trip to Singapore

Do you know that you can fly for free to Singapore by swiping credit card ? That easy ? HSBC credit card is offering that. For those not on existing card holder,

Benefits of taking JetStar to Singapore
1. Free checkin luggage limit of 20kg
2. Flight departure from KLIA
3. Ability to select seat at no extra charge

How to get free ticket
1. Register 1st using SMS to 33733
2. Start swiping for 7 times
3. Get reservation code via SMS
4. Login to http://www.jetstar.com/specials/hsbc
5. Choose preferred departure and arrival date. Only can book one at a time
6. Decide on the time and accept the terms and condition
7. Fill in passenger information and preferred seats
8. Fill in the voucher code
9. Use HSBC credit card to pay fuel surcharge, airport tax and admin fee. All bookings are non refundable and non changeable

Terms and condition
1. Booked by 30th September 2008
2. Travel by 29th March 2009
3. Ticket redeemed for Jetstar KL-Singapore-KL flight
4. Seat subject to availability
5. Travel voucher non transferable for cash nor accumulated
6. Limit to 1 passenger per travel voucher only
7. No refund will be entertained should passengers fail to key in the voucher provided
8. Fuel surcharge, airport tax and admin fee bared by the card holders when booking the flight.
9. For new card holder of HSBC, offer only for 1st 10000 approved HSBC Primary card holder
10. For 7 swipes, the cutoff period is 11.59pm 31st August 2008 or Limit of 30000 tickets free flights whichever is earlier
11. Your confirmation code will be received within 3 weeks from your 7th swipe.