If you're new to the idea of credit cards, points, miles, and everything in between then this article is for you. As brief as I can I will give you a rundown of the basics you need to know to get on that plane to your next vacation without going too deep into the details.
First things first I have 5 RULES I need you to know by heart and failure to do so will be considered a Mortal Sin. Keep these rules in mind at all times!
THE 5 RULES
1. Always pay the balance in full
2. Always pay on time
3. Never let your points/miles expire
4. Use credit cards not cash/debit cards
5. NEVER EVER spend more than you can afford
Follow these rules and you'll be one point closer to that vacay!
POINTS AND MILES
Points and miles are a type of currency. We use them to redeem flights, hotel stays, rewards and more. So how do we get points and miles? There are several ways to earn points and miles but we'll be focusing on one main source for this post and that is through credit cards.
Now as sad as I am to admit this, but the Philippines is waaaaaaay behind in the credit card game. By this I mean not a lot of establishments accept credit cards, banks don't really offer much sign up bonuses and credit card offers just aren't as good as abroad like the US. This doesn't mean we can't maximize them right? By using credit cards as often as we can and by redeeming the rewards we create a community of making banks and merchants more aware of its benefits. This would then lead to better credit card offers in the future. It's a win for us consumers and a win for the bank as well so it's really a win-win situation!
EARNING POINTS AND MILES
Sign-Up Bonuses
This is the easiest and quickest way to earn. Sometimes called "welcome bonus", it is when an issuer offers a bonus of points or miles when you sign up for their card and spend a certain amount within the next few months (it varies from issuer to issuer) which is usually quite attainable with the right strategies. An example would be the Citibank PremierMiles credit card offering a 30,000 welcome bonus. To put into perspective how far you can go with 30,000 miles, if you transfer and redeem to Cebu Pacific's loyalty program GetGo. A one way flight from Manila to Tokyo would cost around 14,000 GetGo points, so that is already a roundtrip to Japan. But if you're patient enough GetGo has these redemption sales for certain destinations and could go as low as 2,000 points (plus tax) for a one way flight to Tokyo. You could literally redeem for your entire barkada to go on a trip imagine!
Unfortunately there aren't a lot of banks that offer a sign up bonus or if they do it isn't as lucrative. Citibank has the best sign up offer I've seen in the Philippines so far. To apply online for the Citibank PremierMiles card click here and take advantage!
Shopping Portals
Not as common in the Philippines but most major banks have shopping portals where you can buy everyday items from gadgets to bags and more. Sometimes when you make a purchase on the shopping portal you earn extra points for using the shopping portal. So if you were already planning to buy something why not buy it through the shopping portal and earn some extra points. Don't forget hotel and airline loyalty programs have shopping portals too!
Flying and Staying
This is the traditional way of earning points and miles. Every time you stay at a hotel chain or fly an airline you earn loyalty points or miles. You have no excuse to not be able to join a loyalty program because most if not all of these programs are free to join. Once you join you usually get instant perks like a welcome drink or early access to promos etc. Work your way up the ladder enough and you might earn elite status with perks such as enhanced internet speeds and free seat or room upgrades, but we'll dive into that another time.
HOW TO START?
You can start right now by signing up for the loyalty programs with the airlines you frequently fly, apply for a credit card that matches your spending habits, and start paying with credit cards! I'm not going to say it's gonna be easy, but it's possible and my goal is for you to travel for free or almost free. Again, I can't emphasize it enough that YOU CAN TRAVEL FOR FREE!!!
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