There is a way to save interest for your credit card With the implementation of Tiered Finance Charge effective 1 July 2008, credit card holders who demonstrate good payment track record in settling at least their minimum payment promptly before or on the due date will enjoy reduced finance charge on retail purchases as low as 15% per year.:)

This is in line with Bank Negara’s objective to encourage prudent financial management and to inculcate good financial discipline.

Here is how bank track your 12 months credit card interest payment or finance charge:

Tier 1: Save interest 3% a year - Credit card holders who make prompt payment for 12 consecutive months will enjoy retail finance charge of 15% on the 13th month and onward.

Tier 2: Save internet 1% a year - Credit card holders who make prompt payment for either 10 or 11 months within the past 12 consecutive months will enjoy retail finance charge of 17% per year on the 13th months and onward.

Tier 3: suffer 18% interest - Frequently paying minimum or full payment AFTER due date (more than 3 times within 12 months). In other words, if the Credit card holders who do not meet the above criteria will be charged the retail finance charge of 18% per year.

Revision on late payment fee!
In conjunction with the implementation of tiered finance charges and to further instill prompt repayment behavior, the following revisions will be made:

Late Payment fee - Minimum of RM10 or 1% of total outstanding balance as at statement date. whichever is higher.

Revised Interest Free Period for retail transaction!
Interest Free period for retail transactions will be 20 days from statement date ONLY IF all retail transactions (excluding cash advance, balance transfer and installment payment plan program) of the previous months 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 charge will be imposed from the day the transaction is posted to the card account.

Here are 3 common questions been asked for your additional information.

Frequently Asked Questions:
Q1: If I only hold my credit card for less than 12 months, what would be my finance charge?
A1: The finance charge would be 18% per year to start with and will change accordingly as your payment history builds up to either 17% per year or 15% per year based on your last 12 consecutive months payment history.

Q2: If I make partial payment, is this considered a prompt payment and qualify me for a lower finance charge?
A2: Yes, the payment is considered prompt as long as you make the minimum payment before the payment due date. You will qualify for the lower finance charge if you have made a minimum of 10 prompt payments within your last 12 consecutive months.

Q3: Do I still enjoy 20 days interest free period?
A3: Yes, you will continue to enjoy the 20 days interest free period if the current balance of your previous statement is fully paid by payment due date, save interest for 20days. Otherwise, the finance charge will be calculated on the new retail purchase transactions from the respective posting dates.

Hope this help

So, start managing your credit card bills efficiently without late payment fee and begin to enjoy lower interest rates!

Should you require further clarification or assistance please contact with us at mail@creditcard2u.net !

Pay your credit card bill promptly every month to enjoy A lower finance charge for continuous save interest! you may consider EPP plan to further reduce your interest.:)

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