Credit Card Interest Malaysia
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Malaysia is an emerging credit card market. Mostly, the banks offer low credit card interest in Malaysia to attract more customers. Low interest rates encourage consumers to use their credit cards as the main mode of transaction.[br]
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Understanding Credit Card Interest Malaysia
Credit card interest rates, also called the annual percentage rate (APR), is a crucial decision factor for selecting a card to own. The interest rate applies to the amount outstanding after the interest-free period, which is mostly between 13 to 52 days.
Malaysia is an emerging credit card market. Mostly, the banks offer low credit card interest in Malaysia to attract more customers. Low interest rates encourage consumers to use their credit cards as the main mode of transaction.[br]
Understanding Credit Card Interest Malaysia
Credit card interest rates, also called the annual percentage rate (APR), is a crucial decision factor for selecting a card to own. The interest rate applies to the amount outstanding after the interest-free period, which is mostly between 13 to 52 days.
A credit card is a revolving credit product. It means that the outstanding amount keeps on adding to the next billing cycle. Every month interest is successively added to the last outstanding. Thus, if the outstanding is not paid, within a few months, the interest rate cycle can result in a debt crisis situation for the owner.
Credit Card Interest Malaysia: Tiered Structure
Banks offer a tiered structure for credit card interest in Malaysia. The structure was implemented in 2009 to provide relief to regular credit card bill payers from high interest rates. Here are the essential details of the interest rate structure:
- Maximum APR is 17.5% (as per data retrieved in February 2010).
- Tier 1: Individuals who pay their credit card bills before the last date for a period of 12 months can enjoy a 13.5% interest rate for the 13th month.
- Tier 2: Individuals who pay timely credit card bills for 10 or 11 months out of 12 months fall in the second tier. They will get a 16% APR for the 13th month.
- Tier 3: For the remaining credit card holder, the APR remains at 17.5%.
- An individual has to make minimum payments from the outstanding bill before the due date to enter into Tier 1 or Tier 2.
Negotiate for the Best Credit Card Interest Malaysia
An individual can always negotiate with the issuer for the best credit card interest in Malaysia. Any credit card holder with a good credit rating and favorable payment history can approach company executives for a cut in the interest rate. Owing to heavy competition in the market, credit card companies consider demands of eligible customers.
However, the best solution to escape from an interest rate swirl is to pay credit card bills in full every month.
Get more top Malaysia Credit Card Information on EconomyWatch below.
And check out the Top 10 Malaysia Credit Cards according to EconomyWatch readers.
