22 Feb - 7 min read
(Article updated on 22 February 2022.)
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).
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 (initially applicable until 31 December 2020, but has now been 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.
Campaign period: 1 Jan to 31 Dec 2022
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure |
Eligibility |
0% p.a. | RM5,000 (up to five banks) | 80% of available approved credit limit | 12 months | New-to-bank cardmembers only |
(Balance Transfer and Fast Cash Flexi 0% for 6-Month Plan – part of a credit card sign-up offer)
Campaign period: 1 Oct 2021 to 31 Mar 2022
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure |
Eligibility |
0% p.a. | RM1,000 | 80% of available approved credit limit | 6 months | New-to-bank principal credit card /-i card member |
(Everyday Cashback Visa Credit Card promo – part of a credit card sign-up offer)
Campaign period: 1 Feb to 30 Apr 2022
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure |
Eligibility |
0% p.a. | RM1,000 | 80% of available approved credit limit | 12 months | New-to-bank cardmembers (requires monthly retail spend of RM500 for three consecutive months on approved credit card) |
(HLB Lighten Your Life with HLB Credit Card – Balance Transfer Promo)
Campaign period: 1 Feb to 30 Apr 2022
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure |
Eligibility |
One-time fee – 2.48% (6 months) – 3.48% (12 months) Monthly interest – 5.28% p.a. (12 months) | RM1,000 | 90% of available approved credit limit | – 6 months – 12 months | All principal cardmembers |
(0% PB Balance Transfer for New-To-Bank Cardmembers)
Campaign period: 1 Jan to 30 June 2022
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure | Eligibility |
0% p.a. | RM2,000
| 80% of available approved credit limit | 12 months
| New-to-bank principal credit card /-i card member (card approved from 1 January 2022 onwards) |
Campaign period: 1 Jan to 30 June 2022
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 |
(0% Interest Balance Transfer Plus)
Campaign period: 1 Jan to 30 June 2022
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure | Eligibility |
0% p.a. | RM1,000
| RM15,000, subject to available credit limit | 12 months
| Principal credit cardholders |
(0% Interest Balance Transfer Plus)
Campaign period: 1 July 2020 to 30 June 2022
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure | Eligibility |
0% p.a. | RM1,000
| RM15,000 or up to 100% of the credit limit, whichever is lower | 12 months
| New credit cardholders for any cards that offer Balance Transfer Plus |
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 |
Affin Bank (Balance Transfer Installment Plan) | One-time upfront interest – 2% (6 months) – 4% (12 months) – 5% (18 months) – 6% (24 months) – 7% (36 months) | – RM1,000 (6 and 12 months) – RM2,000 (18 and 24 months) – RM3,000 (36 months) | Up to 90% of approved credit limit | – 6 months – 12 months – 18 months – 24 months – 36 months |
Alliance Bank | – 0% p.a. (6 months) – 9.88% p.a. (12, 18, and 24 months) | RM1,000 | N/A | – 6 months – 12 months – 18 months– 24 months |
CIMB
| Plan A – 5.99% p.a. Plan B – 7.99% p.a.
| RM1,000 | Up to 80% of credit limit | Plan A – 6 months Plan B – 12 months |
Citibank (Balance Transfer Programme – for existing Citi balance transfer customers)
| 8.99% p.a. | RM1,000 | Subject to available credit limit and the bank’s discretion | 12 months |
Citibank (Balance Transfer Via Instalment Plan – for customers transfering from other banks)
| 9.9% p.a. | RM1,000 | Subject to available credit limit and the bank’s discretion | – 6 months – 9 months – 12 months – 18 months – 24 months – 30 months – 36 months – 48 months – 60 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 (Connect Exclusive Plan) 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 | – 0% (3 months) – 1.88% upfront interest (6 months) – 3.88% upfront interest (12 months) | RM1,000 | Subject to available approved credit limit | – 3 months – 6 months – 12 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 | Plan 25 – 6 months Plan 26 – 12 months Plan 27 – 18 months
|
UOB (Balance Transfer Fixed-Pay Programme) | 6 months – 2.68% p.a. (upfront interest)12 months – 3.68% p.a. (upfront interest)18 months – 4.68% p.a. (upfront interest) | RM1,000 | – 80% of available approved credit limit | – 6 months – 12 months– 18 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.
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world
Comments (0)