What is a credit card balance transfer?
For starters, credit card balance transfer refers to transferring your credit card debts from multiple cards into a single card/account. Ideally, the credit card to which the outstanding balance of other cards is transferred is from a different bank or financial institution.
Contrary to popular beliefs, it is not exactly a great move to look for a balance transfer credit card in Malaysia. Because you may need to sacrifice a lot of added credit card benefits like rewards and cash back just to accommodate the balance transfer feature.
Instead, you could apply for a credit card in keeping with your financial requirements, and then opt for a balance transfer plan on that card.
But the fix is, you won’t know if the credit card issuer or bank which provides the credit card has a good balance transfer plan or vice versa. So now, I have analyzed a list of banks that offer amazing credit cards and top notch balance transfer services. Based on the bank and the credit card(s) you use, you can choose a balance transfer plan.
This article will also help you to choose your ideal credit card from a particular bank and the corresponding balance transfer plan that it offers.
Hong Leong Balance Transfer
Hong Leong Bank is renowned for offering highly personalized credit cards to customers of varied lifestyles with diverse financial needs. You can consider Hong Leong Bank to opt for a basic or a tailored credit card with benefits that match your expectations. After which, you can tie-up a balance transfer plan with the credit card.
The balance transfer plan is open to existing Hong Leong Bank credit card holders and also to new customers. The transferred balance can be repaid over up to 12 months. A minimum balance transfer amount of RM1000 or more can be repaid over a 6 to 12 month tenure at an interest rate of 6.99%. And brownie points to Hong Leong Bank’s credit card balance transfer as no processing fee or upfront handling fee are charged!
You also have a choice of up to 16 credit cards and a maximum of 3 bank accounts to transfer balance from!
HSBC Balance Transfer
HSBC offers a wide range of credit cards starting from daily needs variants to premium ones with special benefits and privileges. HSBC also provides balance transfer plans along with its credit cards.
The balance transfer starts at 0% interest over 6 months and includes a 3% one time processing fee. The minimum amount to repay monthly is 5% of the outstanding debt. At no additional transfer fee, the interest charge is 5.99% for 6 months and 8.99% for a 12 month tenure. This credit card balance transfer plan provides a choice of up to 7 credit cards.
Maybank Balance Transfer
This credit card balance transfer program offers a longer repayment tenure and low interest rates. You can ease out your debt with hassle-free payments over up to 36 months. This program also includes a 0% balance transfer up to 12 months and an up-front handling fee of 3% of the transfer amount.
Maybank also features a great lineup of utility credit cards to which you can combine the balance transfer programs. The interest rates for other repayment periods:
6 months: 6% p.a
9 months: 9% p.a
24 months: 4.5% p.a
36 months: 4.95% p.a
Ambank offers tenures up to 36 months at zero-interest! But it charges a balance transfer fee of 4.88% of the transfer amount. Every tenure has a minimum balance transfer amount of RM1000 from the other credit cards.
The downside, however, is that it involves an early termination fee of RM100. This means, the balance transfer plan does not encourage you to settle your balance early, before the stipulated repayment period. Otherwise, this could be a great plan as AmBank offers a host of low-interest credit cards that could enhance the balance transfer experience.
AEON Cards Balance Transfer
This credit card balance transfer plan provides only a single option; yet it is a very robust option to have if you’re okay with a short repayment period. Yes, this plan offers a 0% balance transfer over 6 months for a minimum balance transfer amount of RM1000.
There is no processing fee or transfer fee attached to the plan, and you can make your monthly installments hassle-free. The only shortcoming is that only a 6 month tenure is offered. No charges for early termination too i.e., settling your outstanding balance early. No other deal-breaking terms and conditions. If you are happy with a 6 month balance transfer plan to settle your debt, AEON Cards Balance Transfer is one of the best plans you can opt for!
Choosing the best credit card balance transfer plan
While the plans mentioned above are the best balance transfer plan in Malaysia, I do reckon that you might be having accounts in other banks. Compare the balance transfer plans between your various credit cards and their respective banks to take a decision.
Also, if you like any of these banks for their balance transfer plan, there is no reason why you shouldn’t apply for a credit card at one of them. You could submit your credit card application for a low-interest card at one of these banks, and transfer the balance of your other debt-ridden credit cards!