It is an effort by both Bank Negara Malaysia and Banks to inculcate better credit management on credit card spending and repayments using a Risk Adjusted pricing that rewards low and medium risk cardmembers.
The current ceiling for interest rate is at 17.5% p.a. on reducing outstanding balance. Moving forward, the industry has proposed reducing this to 13.5% p.a. for consecutive prompt paymasters and 16% p.a. for non-consecutive prompt paymasters.
Cardmembers who pay promptly for 12 consecutive months will qualify for 13.5% p.a. whilst cardmembers who miss the due date for one or two payments within a 12-month cycle will qualify for 16% p.a..
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