Managing multiple credit card debts can be a daunting task. You can transfer all your outstanding credit debt into one card and enjoy low-interest rates with balance transfer credit cards.
Compare Balance Transfer Programme or Plans
|Bank Name||Duration (in months)||Interest Rate||Minimum Transfer Amount|
|BSN||3 to 36||0.30% per month to 0.375% per month||RM500|
|HSBC||6 to 12||0.42% per month to 1.99% p.a.||RM1,000|
|Maybank||6 to 36||0.50% per month to 0.75% per month||RM1,000|
|AEON||6||0% per month||RM1,000|
|Public Bank||6 to 36||1.5% per month to 7% per month||RM500|
|RHB||12 to 18||7.30% p.a. to 10.22% p.a. (Effective Interest Rate) 4% to 10.99% (One Time Interest Rate)||RM1,000|
|AFFINBANK||6 to 36||2% to 7% (One-time Upfront Interest Rate)||RM1,000|
|OCBC||6 to 12||2% per month to 4% per month||RM1,000|
|Citibank||6 to 36||5.32% p.a. to 5.81% p.a.||RM1,000|
|UOB||6 to 18 (Reducing Balance Plan) & 6 to 12 (Fixed-Pay Plan)||7.77% p.a. to 7.99% p.a. (Reducing Balance Plan) & 6.6% p.a. to 6% p.a. (Fixed-Pay Plan)||RM1,000|
|AmBank||6 to 24||4.99% p.a. to 8.99% p.a.||RM1,000|
|CIMB||6 to 12||5.99% p.a. to 7.99% p.a.||RM1,000|
|Alliance Bank||12 to 24||6.99% p.a. to 7.99%||RM1,000|
|Hong Leong||6 to 12||4.99% p.a. to 6.99% p.a.||RM1,000|
|Standard Chartered||12 to 36||5.99% p.a.||RM1,000|
|Bank Rakyat||No pre-requisite period||0.25% per month or 3% p.a. for first 3 months and 13.5% p.a. from the fourth month onwards||RM1,000|
A Balance Transfer Credit Card lets you transfer the debt accumulated on one credit card to another card. These cards levy low-interest rates on your existing debt, thereby making it easier for you to clear your credit balance quickly. The interest rate charged on the amount varies from bank to bank with some banks offering 0% interest rate, albeit for a specific time span ranging from 6 to 12 months.
Features and Benefits of Balance Transfer Programme
The following are the benefits of this programme:
- You can enjoy more control over your monthly repayments: Given that you can choose the duration of your plan, you can have better control over your monthly repayments.
- You can consolidate all your accounts into one: If you own multiple cards, you can consolidate all your accounts into a single account under the balance transfer programme. Thus, you need not remember various repayment due dates or different clauses of your cards. This way, your transactions will be simpler.
- You can manage your debt better: Given that this programme allows you to choose your plans as well as the favourable interest rates, you can assess your credit.
- You can save more: You have the opportunity to save more as you need not pay any processing fee or handling charges. Moreover, no penalty is usually charged on early exit, which makes it easier to save.
Balance Transfer Promotions
CIMB Bank 0% Balance Transfer: Transfer all your credit cards’ debts to CIMB Bank credit card and enjoy 0% interest rate for 6 months. The offer is valid till 31 March 2018.
Eligibility and Requirements
- The principal/primary cardholders are eligible to apply for the balance transfer programme. Some banks (like BSN Bank) also allow supplementary cardmembers to apply provided they take prior consent from the primary cardholders.
- Generally, a copy of the other bank's credit card account statement from which the balance is to be transferred is required.
- The Hong Leong AMEX Platinum Principal Cardholders cannot apply for any balance transfer schemes by the bank.
How to Transfer Balance from One Credit Card to Another?
You can transfer your balance from one card to another in the following manner:
- Duly fill up the Balance Transfer Application Form available on the bank’s website.
- Attach a copy of the latest credit card account statement of the bank from which you want to transfer the balance.
- Submit the same through:
- Bank branch
How to Find The Best Balance Transfer Credit Card?
Balance transfer credit cards can be extremely useful if you are struggling to pay off multiple credit card debts. However, choosing a balance transfer card can be a bit tricky if you are unaware of the nitty-gritties of the Terms and Conditions associated with it. Here’s what you need in order to choose the best balance transfer plan:
- Transferred amount Terms and Conditions: Some banks put a minimum transferred amount bracket, while some banks ask the debtor to clear off the transferred debt within a specific period of time. It’s important to understand the Terms and Conditions associated with these cards so that you can choose one that suits you best.
- Interest Rates: Always choose a card offering the lowest interest rate. You can even find 0% interest balance transfer cards in Malaysia. However, such cards come with a specific time, often limited to 6 to 12 months, where you don’t have to pay any interest.
- Overall benefits of the card: It’s always important to know other attributes of the credit card. Ensure that you enjoy the basic privileges, including cashback, reward points, waiver of annual fees, rebates, and other benefits with your new credit card.
Things to Look Into Before Opting for A Balance Transfer Credit Card
Before you choose to transfer your debts, here are certain things that you need to look into:
- Credit limit: Ensure that your balance transfer card has enough credit limit so you can transfer all your outstanding debts.
- Holding a credit card with the bank: Existing customers can apply for a balance transfer card anytime. But if you don’t have a credit card with the concerned bank, you need to apply for one to enjoy the benefits of the balance transfer plan offered by that bank.
- Processing fee: While most banks don’t levy any additional charges on balance transfer cards, however, there could be some cards on which you have to pay a processing fee.
- Avoid swiping the balance transfer card: Always remember the low interest rate is only applicable to the transferred amount and not on every new purchase made. All new purchases will be charged as per regular interest rates.
- Don’t miss out on regular payments: Make sure you are paying on time. Any skip, hop or miss might put your low balance transfer rates at risk.
- Avoid using other credit cards: The basic point of using a balance transfer card is to pay off your debts, in an easier way. Accumulating more debt might put your credit score in jeopardy.
Frequently Asked Questions
Q. Is it possible to apply for a card just for balance transfer?
A. Yes, it is possible. However, it is recommended not to make this a practice. Some banks do not take it in a good way if they find out an individual is applying for credit cards solely to transfer money.
Q. What are the basic things I should know while applying for a balance transfer card?
A. You should make sure that:
- Your balance transfer card has enough credit limit to transfer the amount.
- You have gathered all the information regarding the interest rates offered by the bank.
- You have checked all other attributes of the card i.e., cashback, reward points, and other privileges.
Q. Can I make purchases with a Balance Transfer Credit Card?
A. Yes, you can. However, remember that every new purchase will be charged regular interest rate.
Q. Is it possible to transfer outstanding balance from more than one credit card?
A. Yes, if you have sufficient credit limit to transfer the amount, you can.
Q. How do I transfer the balance from one credit card to another?
A. There are various ways by which you can transfer the amount. Some banks offer balance transfer solutions over the phone, while some banks will ask you to fill a separate form.
Q. Do I need a minimum amount to transfer?
A. Yes, most banks have put a requirement on the minimum amount that needs to be transferred. This amount varies from bank to bank.
Q. What happens in case of early repayment? Do I have any additional charges to pay?
A. In case of an early settlement, the bank might levy a fee of RM100. A bank might also ask you to pay all the monthly interest that you have maintained till the conclusion of the programme. Read all the bank’s Terms and Conditions carefully to understand the fees levied during early settlement.
Q. Does every bank charge a penalty for early settlement of balance transfer plans?
A. A penalty is not always charged for early settlement. Some banks like OCBC do not charge any fee for early settlement. However, there are a few banks that might charge you a penalty as per their discretion.