New credit card interest rates structure 1 July 2008

It pay to practise good finacial discipline! Starting 1 July 2008, there will be a nationwide change to Malaysia's credit card interest rate structure. A new Tiered Interest Rate Structure will be introduced by Bank Negara Malaysia to reward those who pay their credit card bill promptly.

1. Pay on time to enjoy lower interest
Reduce your standard 18% p.a to 15% p.a by paying your credit card bills promptly for 12 consecutive months. If you have no payment delays for 12 month in a year, you start to enjoy a lower interest rate on the 13th month. We understand that sometimes you are late for reasons beyond your control, so for those who pay promptly for at least 10 out of 12 months, you will also enjoy a lower interest of 17 % p.a
* Minimum amount due must paid within the due date.

2. Late payment penalty will increase
Late payment on the other hand will lead to increased charges. Late payment charges have benn revised to a minimum of RM10 OR 1% of total outstanding balance, whichever is higher, up to RM100.

3. Revised interest-Free period for retail transactions
Interest-Free period for retail transactions will now be 20 days from statement date ONLY IF all retail transactions(excluding cash advance, balance transfer and installment payment plan programmes) of the previous month are fully paid by the payment due date.

This means, if you make partial payment, minimum payment or do not make payment on or before the payment due date, finance charges will be imposed from the day the transaction is posted to the card account.

So start managing your credit card bills efficiently and begin to enjoy lower interest rates !!!