1. What is the interest rate reduction all about and why?
  2. What are the interest rates recommended vs current?
  3. Who qualifies for 13.5%, 16% and 17.5%?
  4. What are the late payment charges?
  5. How does this differ from the previous late payment charges?
  6. How will I now be charged interest?
  7. Is there still a 20 days interest free period?
  8. When will the changes take effect?
  9. If I am enjoying the new interest rate and missed one month repayment, will I enjoy the existing rate? How long for me to return to my previous rate?
  10. Is this applicable to Amex Charge card?
  11. If I am a full paymaster all this while but for this month I have settled partial payment on the total outstanding balance, will I enjoy 20 days interest-free period?

1. What is the interest rate reduction all about and why?

Both BNM and Banks have revised further the credit card interest rate and came up with the lower interest whereby the interest rate on  outstanding credit card balances between 0.5% and 1.5 % effective March 31, 2009. This is to inculcate better credit management on credit card spending and repayments especially in this challenging economic situations.



Back to top

2. What are the interest rates recommended vs current?

The current tier for interest rate is at 18% for Tier I, 17% for Tier II and 18% for Tier III. Moving forward, the industry is proposing to revise downwards to 13.5% for Tier I, 16% for Tier II and 17.5% for Tier III.

CURRENT INTEREST RATES

NEW INTEREST RATES

15%   Tier -I
(Those who promptly settle monthly minimum payments for retail purchases for 12 consecutive months)

13.5%   Tier -I
(Those who promptly settle monthly minimum payments for retail purchases for 12 consecutive months)

17%     Tier – II
(Those who promptly settle minimum payments for 10 months or more in a 12-month cycle)

16%     Tier – II
(Those who promptly settle minimum payments for 10 months or more in a 12-month cycle)

18%   Tier – III
(Those outside the Tier-I and Tier II categories)

17.5%   Tier – III
(Those outside the Tier-I and Tier II categories)



Back to top

3. Who qualifies for 13.5%, 16% and 17.5%?

Cardmembers who pay promptly settle monthly minimum payment for retail purchases for 12 consecutive months will qualify for 13.5% per annum. Those Cardmember who promptly settle minimum payments for 10 months or more in 12 month cycle will qualify for 16%. Cardmembers who does not fall under Tier I and Tier II qualify categories for Tier III - 17.5%.



Back to top

4. What are the late payment charges?

A minimum of RM5.00 or 1% of the total outstanding balance, whichever is higher, up to maximum of RM75.00.



Back to top

5. How does this differ from the previous late payment charges?

Previously it was at RM10.00 minimum and up to maximum of RM 100.00.



Back to top

6. How will I now be charged interest?

If you pay on partial or minimum payment to your outstanding balance, you will be charged interest on remaining outstanding balance and on whatever transactions posted between your previous and forthcoming statements.



Back to top

7. Is there still a 20 days interest free period?

Yes, but only if you settle your outstanding amount in your previous statement.



Back to top

8. When will the changes take effect?

The changes will take effect on 31st March 2009.



Back to top

9. If I am enjoying the new interest rate and missed one month repayment, will I enjoy the existing rate? How long for me to return to my previous rate?

If you are currently enjoying the 13.5% interest rate and missed one month your new interest rate would be 16%. Similarly, if you are enjoying the 16% interest rate and missed one month payment on time, your new interest rate would be increases to 17.5%. After which cardmembers who pay promptly for 12 consecutive months will qualify for 13.5% p.a whilst cardmembers who may miss 1 or 2 payment due date within 12 month cycle, will qualify 16% p.a

 



Back to top

10. Is this applicable to Amex Charge card?

These new changes are not applicable to the Amex Charge card. It is however applicable to the Amex Blue Box credit card.



Back to top

11. If I am a full paymaster all this while but for this month I have settled partial payment on the total outstanding balance, will I enjoy 20 days interest-free period?

Yes, you will enjoy 20 days interest-free period if you have settled full for all the previous month.



Back to top