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No interest free period for those who don't settle credit card debts
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http://thestar.com.my/news/story.asp? ... 20080701192120&sec=nation

PETALING JAYA: Effective today, credit card holders who only pay partial or minimum of their outstanding amount will no longer enjoy the 20-day-interest-free period for new retail transactions.

Bank Negara confirmed that the ruling took effect Tuesday, as part of its effort to promote the use of credit cards payment instrument, prudent spending and good financial discipline among credit card users.

About a year ago, Bank Negara took steps to encourage financial discipline by announcing a new interest rate scheme for credit card users.

Following the announcement, credit card issuers began to track repayment behaviour of their cardholders with effect from July 1, last year.

However, those who settle their credit card outstanding amount in full every month will still continue to enjoy the interest-free period.

As at the end of last year, there were 2.7 million credit card holders in the country, of which one third or 33% settle their outstanding amount in full every month.

“More than half of cardholders pay at least the minimum amount due promptly and roll over the remaining balance,” according to Bank Negara statement.

“For the benefit of credit card users who have a good track record of settling their credit card balances, which are due each month, promptly for 12 consecutive months, the finance charge will be reduced from the maximum of 18% per annum to not more than 15% per annum.”

Bank Negara said banks and credit card issuers had already begun issuing notices on the matter to customers.


*******
ANY OPINIONS ON THIS?

Posted on: 2008/7/2 19:20
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Re: No interest free period for those who don't settle credit card debts
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Encourages people to pay in full on time? And not to spend too much in one go? Most probably to avoid the lot of us to be stuck in credit card debt, which can take quite a while to settle if it's as bad as some UK financial pundits paint it.

Or perhaps it'll make us stick to cash payment or fully utilize the new MEPS Cash thingy I see proliferating all over the place, or make use of Visa/Mastercard debit cards.

Posted on: 2008/7/2 19:51
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Re: No interest free period for those who don't settle credit card debts
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yeah, better don't use credit card if we can't pay full in time. if not we will get charged for more interest. sigh... have to save and spend wise nowadays.

Posted on: 2008/7/3 9:02
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Re: No interest free period for those who don't settle credit card debts
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i think bank negara should educate the public esp the young graduates on how to use credit cards wisely. the newly graduates are the target groups of teh bank cos they are eager to spend on thier newly acquired credit cards.

regarding the bills of credit cards, it they asked for full amount after each transaction, or if the implement interest straight away after the transaction (no more 20 days interest free), then it denies the full benefits of credit cards. better use debit cards (like what i am using now) - it's convenient, hassle free, not messy hutang, no interest and best of all, certain banks gives u small amount of interest when u keep ur balance inside you cards. and, no money, no talk. hahaha...

another area to look at is the bank attitude themself. catching the newly graduates, lowering the income required for the cards i think is a dirty tricks they use. these are the people who are easily get caught in the credit card debts if not taking extra care. promotions they held at hypermarkets are also bad, as some of them really force the customers to apply for 1. if u dun want, they'll give u that look... but to my concern, i just dun care... just run away when i say i dun want... no more mercy! hahaha

Posted on: 2008/7/3 9:39
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Re: No interest free period for those who don't settle credit card debts
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i think its a good thing and should be done long ago.

Posted on: 2008/7/3 20:48
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Re: No interest free period for those who don't settle credit card debts
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Hi all, I believe the latest move by BNM not to give the 20 days free interest period to those who do not pay in full for the consecutive 12 months is good for the nation in the long run. This will also discipline people who are careless in using credit cards. Many are ignorant, and they use the cards like they need not pay at the end of the month. Credit cards when use properly can be of great convenience to the card holders. E.g you do not have to carry too much cash especially when you travel to foreign land or perhads even to KL. In case you need to pay for something, you can settle it right away. It is useful for paying hotel bills, imagine if you have to carry a wade of notes just to pay for a week stay in any hotel in KL! Whatever it is there are pros and cons to all things. Use the cards wisely and you will gain. What more nowadays you do not need to pay subscription fees for cards! Self control and careful spending is the Key.

Posted on: 2008/7/4 5:24
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Re: No interest free period for those who don't settle credit card debts
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better they put stricter control for credit card application...

Posted on: 2008/7/4 9:24
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