13th July 2023 - 6 min read
(Article updated on 13 July 2023.)
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 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 July to 31 Dec 2023
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure |
Eligibility |
– 0% p.a. – 1% upfront interest | RM2,000 | – RM20,000 or 80% of available approved credit limit (for 0% p.a.) – RM50,000 or 80% of available approved credit limit (for 1% upfront interest) | 12 months | Existing cardmembers only |
Campaign period: N/A
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure |
Eligibility |
– 3% p.a. for first three months, remaining months to be subjected to the lowest tier pricing of 13.5% p.a. | N/A | 100% of financing limits | N/A | All cardholders |
(HSBC Balance Transfer Instalment at 0% Interest Rate)
Campaign period: N/A
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure |
Eligibility |
0% p.a. | RM1,000 | Up to 80% of total available credit limit | 3 months | New-to-bank cardmembers only |
(Hong Leong Balance Transfer Promo)
Campaign period: 1 to 15 July 2023
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure | Eligibility |
0% interest with one-time fee – 2.77% (6 months) – 3.77% (12 months) Balance transfer with monthly interest – 5.28% p.a. (12 months) | RM1,000 | 90% of available approved credit limit | – 6 months – 12 months | All principal cardmembers |
(Balance Transfer 0% Interest, With 1% One-Time Upfront Fee)
Campaign period: 15 Mar to 15 Nov 2023
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure | Eligibility |
0% (but with 1% one-time upfront fee on approved amount) | RM1,000 | RM50,000 | 12 months | Cardmembers who receive campaign invitation only |
(0% PB Balance Transfer for New-To-Bank Cardmembers)
Campaign period: 26 June to 31 Aug 2023
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure | Eligibility |
0% p.a. | RM3,000
| 80% of available approved credit limit | 6 months
| All principal cardmembers |
Campaign period: 1 July to 31 Dec 2023
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure | Eligibility |
6 months – 1% upfront interest 12 months – 2.5% upfront interest 24 months – 4.5% upfront interest 36 months – 6.5% upfront interest 48 months – 9.5% upfront interest | RM1,000
| 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 31 Dec 2023
Interest Rate | Minimum Transfer | Maximum Transfer | Tenure | Eligibility |
0% p.a. | RM1,000
| RM30,000, subject to available credit limit | 12 months
| New-to-bank credit cardholders only |
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 month – 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 |
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) 12 months – 5% (one-time fee for 12 months) | 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 | 7.88% p.a. | RM1,000 | Subject to available approved credit limit | – 6 months – 12 months– 24 months – 36 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.
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