The standard rate out there is 18% per annum which works out to 1.5% per month. This is not a small charge to be paying on a monthly basis if you’re carrying huge balances. What you can do to reduce your debt is to do a balance transfer to another credit card that offers lower interest rates.
A few banks have been calling to offer their balance transfer programs. Here I’ll share a few so that you are better informed as to which bank offers the lowest rates. The trick is to try to pay up your debt in the shortest duration possible, so most of the rates I’m quoting are for a repayment period of 6 months.
Hong Leong Bank’s generic balance transfer program for a Hong Leong Gold card is 6.99% per annum for an unlimited durating of repayment. It works out to about 0.5825% per month. But wait, it gets better…if you want to repay the amount owing in 6 months, they offer 0.5% per month. Slightly lower but every penny saved is a penny earned.
Similar to Hong Leong Bank, HSBC Bank also offers 0.5% per month on your newly transferred balances, to be repaid in 6 months. The minimum amount required to be transferred is only RM1,000.
Public Bank has a slightly higher rate at 6.88% per annum for up to 24 months of repayments. You need to transfer at least RM3,000 in this program. Alternatively, it also had a fixed interest rate which means you pay the interest one-time in a lump sum. This is to be paid upfront. The fixed rate ranges from 1.5% for a 6-monthly repayment, 2.5% for 12-monthly repayments and 5% for 24-monthly repayments.
OCBC offers one of the best rates around, at 0.38% per month for a 6-month repayment period. The minimum amount to be transferred is RM2,000. If I were to do a balance transfer, this would be my choice.
If you have seen, heard or been offered anything lower than this, be sure to grab it but do read the fine lines and the terms and conditions.
