Are you on the verge of a credit card debt crisis?
A balance transfer credit card is the ideal solution for individuals facing huge credit card debts. The reason for credit card debt is the interest rate on the outstanding amount. The interest rate keeps on adding to the rolling credit and the debt continues to inflate.
How Does a Balance Transfer Credit Card Malaysia Work?
A balance transfer credit card allows the owner to consolidate debt. Simply put, an individual can pay off the debt on an existing credit card with the new balance transfer credit card. Thus, the debt cycle breaks. Now, the individual has to pay the debt amount to the new balance transfer card issuer. This provides an extended time period to pay off the debt.
Owing to intensive competition in the market, credit card issuers are offering low-interest balance transfer cards. This allows credit card companies to engage customers who are already using a credit card from another company. Thus, it is a win-win situation for both the customers and the issuer.
Balance Transfer Credit Cards Malaysia
Most popular banks that offer balance transfer credit cards in Malaysia are:
- American Express
- EON Bank
- Hong Leong Bank
- Standard Chartered Bank
Look for low interest rates on debt consolidation while choosing a balance transfer credit card in Malaysia. Many credit cards offer zero percent balance transfer for an introductory period of 12 months. Some cards offer interest rates as low as 3% on balance transfers for a life time. One can also search for banks that charge onetime interest on balance transfers.
Compare balance transfer credit card products from different issuers in relation to the amount of debt. For example, to settle a small debt amount, an introductory zero percent balance transfer card is ideal. However, for a huge debt amount, a card offering a flat interest rate on balance transfer is good.
As a word of caution, a balance transfer credit card may have a higher APR (annual percentage rate) than standard credit card products.
Get more top Malaysia Credit Card Information on EconomyWatch below.