I would like to ask about the tiered finance charge. My card will reach its 1st 12 months in a couple of months. I have made prompt payment (more than the monthly minimum) every month. So lets say I continue to do so until the 12th month, I will be eligible for Tier I, 13.5% pa, for the next 12 months.

What I would like to know as I am unsure, is how this finance tier thing works. Is it:

a) 13.5% / 12 months = 1.125%

- for the next 12 months, my outstanding balance will be charged a monthly interest of 1.125%


OR


b) 13.5% on the outstanding balance of the 12th month. Example: After the 12th month, I still have rm1000 outstanding balance. So the next month, this Rm1k will be charged 13.5% (RM1000 x 13.5%)... Rm135.


Thanks in advance.

thank you yhtan...thats good to hear...i thought they charge 13.5 at once