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New Rules for Malaysian Credit Card Holders
In late 2007, Bank Negara annouced a Tiered Pricing Structure (TEP) for Malaysian credit card holders that will take effect on July 1, 2008.
Under the new PS, those who settle their minimum monthly payments promptly will enjoy a reduced annual interest charge of 15-17%, instead of the usual 18%.
What this means is that if you carry a balance of RM1000 on your card for this month, and pay the minimum RM50, the interest calculated on your remaining balance will be 17% for the following month, and 16% the following, capping of at 15%.
This is something that you bank would have already informed you via its mailers.
But this is what they havent told you.
There is no longer an interest free period for those who do not pay their bill in full.
Currently, you and I enjoy approximately 20-days of interest free period from the time we make our purchase to the day we make our minimum payment. Howeve, after July 1, only those who make full payments befre the due date will be entitled to the interest-free days. Those who make only partial or minimum payments will be charged interest on the day their new purchases are posted to the card's account.
In addition to that, the pate payment charge is now a minimum of RM10 or 1% on total outstanding balances and not 1% of the minimum payable amount.
SUMMARY: What this means is that for all those of you who carry a revolving balance every month, you will end up paying more in credit card charges every month since every new purchase will now incur interest charges as soon as the payment is posted to your card.
To avoid such charges, you have no choice but to pay your purchases in full at the end of the month.
http://www.personal-finance101.com/news/2008/may/new_rules_malaysian_credit_card_holders.php
Under the new PS, those who settle their minimum monthly payments promptly will enjoy a reduced annual interest charge of 15-17%, instead of the usual 18%.
What this means is that if you carry a balance of RM1000 on your card for this month, and pay the minimum RM50, the interest calculated on your remaining balance will be 17% for the following month, and 16% the following, capping of at 15%.
This is something that you bank would have already informed you via its mailers.
But this is what they havent told you.
There is no longer an interest free period for those who do not pay their bill in full.
Currently, you and I enjoy approximately 20-days of interest free period from the time we make our purchase to the day we make our minimum payment. Howeve, after July 1, only those who make full payments befre the due date will be entitled to the interest-free days. Those who make only partial or minimum payments will be charged interest on the day their new purchases are posted to the card's account.
In addition to that, the pate payment charge is now a minimum of RM10 or 1% on total outstanding balances and not 1% of the minimum payable amount.
SUMMARY: What this means is that for all those of you who carry a revolving balance every month, you will end up paying more in credit card charges every month since every new purchase will now incur interest charges as soon as the payment is posted to your card.
To avoid such charges, you have no choice but to pay your purchases in full at the end of the month.
1 comment:
this is in my opinion a very bad news to those that like to borrow using credit card. This should teach them lesson that did not pay bills when its due. by the way, paying 15% permonth for money is HUGE. even the best unit trust return bank or any invesment company gives to you is 15% per year.. some more that is long term investment...bank never lose. Juat pay your bills in due or better cut the credit card.
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