BANKS are enticing potential credit card customers with a slew of freebies that are increasingly attractive, instead of with only discounts, reward points or one-time gifts.

The freebies range from complimentary drinks to movie tickets to parking in prime locations.

According to a report in The Straits Times today, heated competition has led to freebies that go beyond traditional offers of dining and retail discounts to more creative incentives to woo customers to sign up for more cards and make referrals.

And it works. In the saturated credit card market, the number of main and supplementary cards has increased by 374,000 over the past six months to 5.15 million in January. During the same period, card spending rose $202 million to $1.7 billion.

No wonder banks have developed a new weapon in this perennial one-upmanship battle for card users - dangling freebies. Banks are extending complimentary services that tap on some favourite Singaporean pastimes like shopping, golf, travel and spas.

Mr Shailesh Baidwan, vice-president for cards and lending at American Express, told The Straits Times that complimentary benefits are always welcome by Singaporeans,

Ms Wong Ting Mei, OCBC's head of credit cards, said: "Customers today have come to expect some incentives when they take up or use a card. Most banks generally offer a combination of a rewards programme and free redemptions from time to time."

Customers also find freebies generally simpler to understand, compared to the points system and discounts tied to merchants, say banks.

According to The Straits Times, some cardholders like Ms Anna Tan, 26, a sales executive who holds nine credit cards, tend to take advantage of the freebies more often when banks publicise them by e-mail or SMS, rather than by fliers mailed to them.

Ms Tan said she recently started redeeming a free cup of coffee using her Citibank Paragon card, while enjoying free valet parking and concierge services at the mall.

So it seems that free drinks, parking and tickets are popular weapons for the banks. Every Saturday, UOB Platinum cardholders enjoy one-for-one drinks at the Butter Factory club as well as at the Loof, a watering hole set up by one of UOB chairman Wee Cho Yaw's grandsons.

HSBC rewards Gold cardholders who refer friends to sign up for the card with free Golden Village movie tickets and Starbucks coffee until April 30.

OCBC ups the ante by offering designer travel luggage worth $277 when Platinum or Titanium cardholders persuade two friends to sign up.

Being a woman is all it takes sometimes to enjoy privileges. Those who sign up for the DBS Woman's Card can get as much as $2,000 worth of welcome vouchers for Nike gear, cosmetics, jewellery, grooming and cooking school programmes. And the UOB Lady's Platinum Card offers complimentary use of spa facilities twice a month.

And American Express Platinum credit cardholders get a free Longines watch worth $830 once they spend $5,000.

For the practical-minded, Citibank offers free 24-hour breakdown towing and recovery services for cardholders.

The competition is keen for the well-heeled too with freebies that are even more luxurious. Those who make their first charge on the American Express Singapore Airlines KrisFlyer PPS Club Platinum credit cards are welcomed with up to 25,000 KrisFlyer miles.