Good News for Credit Card holders

  • Do you have thousands of Ringgit on your credit card balance?
  • Do you feel its a burden to pay up every month?
  • Do you think that there will never be an end to your misery month after month after month?
  • Did your credit limit ‘die’ before you?
  • Do you feel an URGE to STOP all of this financial nonsense?

Pay on time to save cash

KUALA LUMPUR: Credit card holders, who pay their bills on time for 12 consecutive months starting July 1, will be “rewarded” with a lower interest rate.

The interest rate charged on the outstanding balance owed by those who promptly pay their minimum monthly payments will fall to a maximum 15% per year from the current maximum of 18%.

“The objectives are to promote credit cards as a payment instrument and to promote prudent financial management and to inculcate good financial discipline,” Bank Negara assistant governor Nor Shamsiah Mohd Yunus told the media yesterday.

According to the central bank, one third of Malaysians used their credit cards as a payment tool and settled the total amount owed on their credit cards every month.

More than half of the country’s nine million credit card holders also promptly paid at least the minimum amount owed every month.

Those who pay the minimum amount and enjoy 15% interest rate per year fall into what Bank Negara classifies as Tier 1 customers.

Tier 2 customers are those who pay at least the minimum repayment due promptly for at least 10 months out of a 12-month cycle and this category of customers will be charged a maximum interest rate of 17% per annum.

The rest fall under Tier 3 and will be charged a maximum rate of 18%, which is the current rate.

Bank Negara also said defaulters – people who missed payment for one month – will be charged 1% of the total outstanding balance or RM10, whichever is higher. The previous rate was 1% of the minimum repayment due or RM5.

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Comments
2 Responses to “Good News for Credit Card holders”
  1. shrl says:

    btl ke ni bro?but judging from my own experience using this plastic,rasa mcm x de efek je diskaun tu…18% to 15%…3% jer??hmmm…apa mekanisma BN utk execute benda ni??

  2. drnaz says:

    yeah ! agrreed ! if only it was right down to 3% instead of cutting down of 3% becoming 15 !

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