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Struggling With Credit Card Debts? Here Are The Best Balance Transfer Plans In Malaysia

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Struggling With Credit Card Debts? Here Are The Best Balance Transfer Plans In Malaysia
This article first appeared on RinggitPlus. Head over to this website for more financial advice.
 

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).

Balance transfer plans as an alternative

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. 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.

Best balance transfer promotions in Malaysia

Affin Bank

(0% Balance Transfer)

Campaign period: 15 Feb to 31 Dec 2020 

affin bank balance transfer

Interest Rate

Minimum Transfer Maximum Transfer Tenure

Eligibility

– 0% (upfront interest, RM5,000)

 

– 3% (upfront interest, RM3,000)

– RM5,000
(0% interest)

 

– RM3,000 (3% interest)

80% of available approved credit limit 12 months All principal cardmembers

Alliance Bank

(Balance Transfer Promotion)

Campaign period: 15 May 2020 to 15 Sept 2020

alliance bank balance transfer

Interest Rate

Minimum Transfer Maximum Transfer Tenure

Eligibility

2.99% p.a. RM1,000 40% of total available credit limit 6 months New and existing principal credit cardholders.

AmBank

(Balance Transfer & QuickCash Promotion)

Campaign period: 2 Mar 2020 to 28 Feb 2021

 

ambank bt promotion

Interest Rate

Minimum Transfer Maximum Transfer Tenure

Eligibility

4.88% p.a. RM1,000 RM50,000 or subject to available credit limit – 12 months

 

– 24 months

– 36 months

Existing AmBank principal credit cardholders who apply through AmOnline.

Public Bank

(0% PB Balance Transfer)

Campaign period: 15 Apr to 31 Dec 2020

pb bt promotion 2
Interest Rate Minimum Transfer Maximum Transfer Tenure Eligibility
0% p.a. RM1,000

 

 

80% of available approved credit limit 6 months

 

 

Only for new-to-bank principal credit card /-i card member (card approved from 1 March 2020 onwards)

Public Bank

(PB Balance Transfer)

Campaign period: 1 Jul to 31 Dec 2020

pb balance transfer
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

RHB Bank

(Smart Move Balance Transfer)

Campaign period: 1 Jul to 31 Dec 2020

rhb balance transfer
Interest Rate Minimum Transfer Maximum Transfer Tenure Eligibility
0.00% p.a. RM1,000 RM15,000 or 80% of available approved credit limit – 12 months All principal  credit card/-i card members

Non-promotional balance transfer programmes by banks in Malaysia

balance transfer cards

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
Alliance Bank

 

(Balance Transfer 9.88 Programme)

– 2.99% p.a. (6 months)

 

– 9.88% p.a. (12, 18, 24, 36, and 48 months)

RM1,000 N/A – 6 months

 

– 12 to 48 months

CIMB

 

(Balance Transfer Programme)

 

Plan A

 

– 5.99% p.a.

Plan B

– 7.99% p.a.

 

RM1,000 Subject to available credit limit and the bank’s discretion Plan A

 

– 6 months

Plan B

– 12 months

Citibank

 

(Balance Transfer Programme)

 

8.99% p.a. RM1,000 Subject to available credit limit and the bank’s discretion 12 months
Hong Leong Bank

 

(One-Time Fee Balance Transfer)

For both new and existing HLB credit cardholders)

6 months

 

– 3% (one-time fee for 6 months, offline rate)

– 0% (online rates)

12 months

– 5% (one-time fee for 12 months, offline rate)

– 0% (online rates)

RM1,000 90% of available approved credit limit – 6 months

 

– 12 months

Hong Leong Bank

 

(Balance Transfer Programme)

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

 

(Lifetime Balance Transfer Programme/Balance Transfer Birthday Offer)

  • For new HLB cardholders
  • During the birthday month of existing HLB cardholders
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

 

(Balance Transfer Programme)

Plan A

 

– 3% (upfront interest)

– 0% (6 months)

Plan B

– 0.58% per month

Plan C

– 0.42% per month

New sign up for HSBC credit card

– 1.99% per month

RM1,000
(for all plans)
95% of available approved credit limit Plan A

 

– 6 months

Plan B

– 12 months

Plan C

– 6 months

New sign up for HSBC credit card

– 6 months

Maybank

 

(Balance Transfer/Balance Transfer-i Plan)

 

6 months

 

– 1.88% (upfront interest) + 0% p.a. (via Maybank2u only)

9 months

– 9% p.a.

12 months

– 3% (upfront interest) + 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

 

(Balance Transfer)

– 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

 

(Balance Transfer Plus)

 

5.99% p.a. RM1,000 N/A – 12 months

 

– 18 months

– 24 months

– 36 months

 

UOB

 

(Balance Transfer Reducing Balance Programme)

Plan 25

 

– 3% (upfront interest)

Plan 26

– 4% (upfront interest)

Plan 27

– 5% (upfront interest)

RM1,000 Subject to available credit limit and the bank’s discretion Plan 25

 

– 6 months

Plan 26

– 12 months

Plan 27

– 18 months

 

UOB
(Balance Transfer Fixed-Pay Programme)
Plan i6

 

– 3.3% p.a.

Plan i12b

– 6% p.a.

 

RM1,000 Subject to available credit limit and the bank’s discretion Plan i6

 

– 6 months

Plan i12b

– 12 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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