malaysia-credit-cards

Good news for Malaysian credit card holders!

The 20-day interest free grace period will remain for credit card holders who continue to pay the full amount while those who pay at least the minimum 5% on their outstanding amounts for 12 months continuously will enjoy a lower interest rate, i.e. 15% p.a. on the outstanding balance.

This was announce after the recently news came out from Bank Negara Malaysia stated that no more 20 days interest free grace period effective from July 1st, 2008. Under the new guideline, credit card holders who make prompt payment over the last 12 months will enjoy lower interest rate. Table below show how much you can save from the new interest rate implemented:

No. of prompt payment in the past 12 months

Interest Rate

12 consecutive months

15% on 13th month onwards

at least 10

17% on 13th month onwards

Others

Remain at 18%


The move will eventually help people to cultivate the good habits to make prompt payment in order to enjoy lower interest rate from the 13th month onwards.

The comforting news is that cardholders do not have to settle the outstanding amount in full – they need to pay only the minimum amount involved.

So, try to make an effort to make prompt payment, either on minimum payment or full amount. There would be a good way to reduce your credit card interest rate.

News & Picture source: TheStar

Other Websites & Blog Headlines Coverage:
New Policy of Bank Negara Malaysia to Credit Cardholder
New Credit Card Interest Structure – No more interest free period for credit card users who make partial payment
BNM new credit card tiering
Credit card: Bye-bye 20 Days Interest-Free Period

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