(Article updated on 25 January 2020.)
Even during regular days, credit card balance transfer programmes are a good strategy to fall back on if you’re swamped with credit card debts that you can’t repay on time. At interest charges of up to 18% p.a., outstanding balances for credit cards can quickly go out of control. This is even more so now that many of us face increased difficulty in our repayments following the economic impact of the Covid-19 pandemic and movement control order (MCO).
Balance transfer plans as an alternative
On 25 March 2020, Bank Negara Malaysia (BNM) announced a few monetary measures to provide some relief for those facing financial constraints due to the current economic climate. As part of this initiative, credit cardholders who are unable to meet the minimum monthly repayment for three consecutive months will have their outstanding credit card balances automatically converted into three-year term loans or financing (applicable until 31 December 2020, but can be extended at the bank’s discretion). However, you’ll be charged an effective interest of 13% p.a. during the tenure of your loan.
While the 13% p.a. interest rate for BNM’s auto balance conversion is lower than the usual 15% to 18% p.a. usually charged on your unpaid credit balances, most balance transfer plans can offer you a much better rate. Like, much better – it is not uncommon for balance transfer packages in the market to entice newcomers with 0%-interest periods and promotional interest rates. That said, you do need at least two credit cards to be able to do balance transfers.
Best balance transfer promotions in Malaysia
Affin Bank
Campaign period: 1 Jan to 31 Dec 2021
|
Interest Rate |
Minimum Transfer | Maximum Transfer | Tenure |
Eligibility |
| – 0% p.a. | – RM5,000 | 80% of available approved credit limit | 12 months | All principal cardmembers |
Alliance Bank
Campaign period: 2 March 2020 to 28 Feb 2021
|
Interest Rate |
Minimum Transfer | Maximum Transfer | Tenure |
Eligibility |
| 5.99% p.a. | RM1,000 | 80% of available approved credit limit | – 12 months
– 18 months – 24 months – 36 months |
Selected existing principal credit cardholders; application through allianceonline only. |
Hong Leong Bank
Campaign period: 1 Jan to 31 March 2021
| Interest Rate | Minimum Transfer | Maximum Transfer | Tenure | Eligibility |
| 0% p.a. | RM1,000
|
Subject to available approved credit limit | 6 months
|
By invitation for selected principal credit card /-i card members |
Public Bank
Campaign period: 1 Jan to 30 June 2021
| Interest Rate | Minimum Transfer | Maximum Transfer | Tenure | Eligibility |
| 0% p.a. | RM1,000
|
80% of available approved credit limit | 6 months
|
Only for new-to-bank principal credit card /-i card member (card approved from 1 January 2021 onwards) |
Public Bank
Campaign period: 1 Jan to 30 June 2021
| Interest Rate | Minimum Transfer | Maximum Transfer | Tenure | Eligibility |
| 6 months
– 1.5% upfront interest (offline and online application) 12 months – 3.5% upfront interest (offline application) – 3% upfront interest (online application) 24 months – 6% upfront interest (offline application) – 5.5% upfront interest (online application) 36 months – 7% upfront interest (offline and online application) 48 months – 9.5% upfront interest (offline and online application) |
6 months
– RM1,000 12 months – RM2,000 24 months – RM3,000 36 months – RM6,000 48 months – RM8,000
|
80% of available approved credit limit | – 6 months
– 12 months – 24 months – 36 months – 48 months
|
For principal credit card/credit card-i members |
Non-promotional balance transfer programmes by banks in Malaysia
Aside from the promotions provided by the banks above, here is also a list of some of the better balance transfer plans that are currently available in the market:
| Bank | Interest Rate | Minimum Transfer | Maximum Transfer | Tenure |
| Alliance Bank | – 0% p.a. (6 months)
– 9.88% p.a. (12, 18, 24, 36, and 48 months) |
RM1,000 | N/A | – 6 months
– 12 to 48 months |
| CIMB
|
Plan A
– 5.99% p.a. Plan B – 7.99% p.a.
|
RM1,000 | Subject to available credit limit and the bank’s discretion | Plan A
– 6 months Plan B – 12 months |
| Citibank
|
8.99% p.a. | RM1,000 | Subject to available credit limit and the bank’s discretion | 12 months |
| Hong Leong Bank
(One-Time Upfront Fee Balance Transfer) For both new and existing HLB credit cardholders) |
6 months
– 3% (one-time fee for 6 months, offline rate) 12 months – 5% (one-time fee for 12 months, offline rate) |
RM1,000 | 90% of available approved credit limit | – 6 months
– 12 months |
| Hong Leong Bank
(Balance Transfer Programme – Monthly Interest) For existing HLB credit cardholders only
|
6 months
– 7.99% p.a. (offline rate) – 6.99% p.a. (online rate) 12 months – 8.99% p.a. (offline rate) – 6.99% p.a. (online rate) |
RM1,000 | Subject to available credit limit and the bank’s discretion | – 6 months
– 12 months |
| Hong Leong Bank
For existing HLB credit cardholders who submit applications through HLB Connect
|
6.99% p.a. | RM1,000 | Subject to available credit limit and the bank’s discretion | – 6 months
– 12 months |
| Hong Leong Bank
(Lifetime Balance Transfer Programme/Balance Transfer Birthday Offer)
|
4.99% p.a. (online and offline rate)
|
RM1,000 | Subject to available credit limit and the bank’s discretion | No fixed repayment period |
| HSBC | Plan A
– 3% p.a. (upfront interest) – 0% p.a. (6 months) Plan B – 6.99% p.a. per month Plan C – 4.99% p.a. per month Plan D (only for cards approved less than 6 months) – 1.99% p.a. per month |
RM1,000 (for all plans) |
95% of available approved credit limit | Plan A
– 6 months Plan B – 12 months Plan C – 6 months Plan D – 6 months |
| Maybank
(Balance Transfer/Balance Transfer-i Plan)
|
6 months
– 1.88% (upfront fee) + 0% p.a. (via Maybank2u only) 9 months – 9% p.a. 12 months – 3% (upfront fee) + 0% p.a. (if maximum transfer is RM50,000) – 12% p.a. (if maximum transfer is 90% of available credit limit) 24 months – 4.5% p.a. 36 months – 4.95% p.a. |
6 months
– RM1,000 9 months – RM1,000 12 months – RM1,000 24 months – RM1,000 36 months – RM2,000
|
6 months
– RM50,000 9 months – 90% of available credit limit 12 months – RM50,000 – 90% of available credit limit 24 months – 90% of available credit limit 36 months – 90% of available credit limit
|
– 6 months
– 9 months – 12 months – 24 months – 36 months
|
| OCBC | – 2.88% (upfront interest for 6 months)
– 4.88% (upfront interest for 12 months)
|
RM1,000 | 80% of available approved credit limit | – 6 months
– 12 months |
| Standard Chartered
|
5.99% p.a. | RM1,000 | Subject to available credit limit and the bank’s discretion | – 12 months
– 18 months – 24 months – 36 months
|
| UOB | Plan 25
– 3% (upfront interest) Plan 26 – 4% (upfront interest) Plan 27 – 5% (upfront interest) |
RM1,000 | – 80% of available approved credit limit
– 100% of available credit limit provided that the transfer does not exceed the credit limit |
Plan 25
– 6 months Plan 26 – 12 months Plan 27 – 18 months
|
| UOB (Balance Transfer Fixed-Pay Programme) |
Plan i6
– 3.3% p.a. Plan i12b – 6% p.a.
|
RM1,000 | – 80% of available approved credit limit
– 100% of available credit limit provided that the transfer does not exceed the credit limit |
Plan i6
– 6 months Plan i12b – 12 months
|
***
As you tap into the benefits of balance transfer programmes to help you repay your credit card debts, make sure to always exercise some financial responsibility. It is crucial that you remain prompt with your monthly repayments, or you will still be hit with the standard credit card interest charge. Remember that balance transfers are not free money, but helps you repay outstanding credit card debt.
