Those having credit card balance are set to pay higher balance charges several banks have revealed they are increasing the balance rates for their credit card. Leading the way is Hong Leong Bank, Citibank and AmBank which will charge more for unpaid credit card balances.
According to The Star, the change of rates for the three banks differ as follows:
Ambank card holders who have been paying their outstanding credit card bills on time for 12 consecutive months will be charged an interest rate of 15% per annum, up from 13.5%.
Prompt payments for at least 10 months will come under a 17% interest charge (previously 16%) while those who do not fall into either category will be slapped with the highest interest rate of 18% (previously 17.5%).
For late payments, card holders will be charged a minimum of RM10 or 1% of the outstanding balance, whichever is higher, and up to a maximum of RM100.
Citibank will raise its tiered pricing rates for prompt payments over 12 months from 13.5% to 15%, 16% to 17% (for 10 prompt monthly payments), retaining the maximum interest at 17.5%.
Hong Leong Bank’s new interest rates are 15%, 17% and 18% in the respective categories.
Bank Negara said that the increase in the credit card rates were in accordance to the guidelines it provided.