when the best time to call the bank for asking about annual fee waiver?

so sad now no more 20 days interest free period unless we make full payment.

Interest-Free Period
Effective this July, the good old 20 days interest-free period provides by credit cards will only applicable to those who make full payment before the due date. Those with carry forward balance and not paying on-time will be charged with the interest the day the new purchase is made. In short, the interest-free period is provided only to those paid in full and on-time.

Late Payment Charges
But there is more! The new late payment charge is now based on total outstanding amount, not minimum monthly payment anymore. The new late payment charge increases to RM10.00 or 1% on total outstanding balance, from 1% or RM5.00 of the minimum payment amount. That means if you have an outstanding balance of more than RM1,001, you would starting to pay more than the minimum RM10.00.

Annual Interest rate
First announced 12 months ago by Bank Negara Malaysia (BNM), comes this July, the tiered pricing structure (TPS) will be implemented that saw the annual interest rate reduced. Those who settle their minimum payment promptly will be charged a reduced interest rate of 15% to 17% per annum (pending their payment history over a 12 month period), instead of the 18% previously.

Conclusion
So what do all these means? Let’s look at the following scenarios:

* Those with monthly outstanding balance who made prompt minimum payment

No 20 days interest-free period but enjoys a lower annual interest rate of 14% - 17% of the outstanding balance. No late payment charge.

* Those with monthly outstanding balance but failed to pay the minimum payment on-time

Late payment fee of RM10.00 or 1% charge on the total outstanding balance; 18% interest rate on total outstanding balance; no 20 days interest-free honey moon.

* Those will full payment on time every time

Enjoy a lower TPS asl low as 14% per annum

You see, banks won’t just give-up easily; they give you a lower annual interest rate (TPS) but at the same time, they cancel the interest-free period and increase the late payment charge.

Bottom line, don’t use your credit card simply because you can afford the minimum payment. Better still, don’t use the card if you do not have the money. Cardholders who cannot be prompt in paying the minimum payment will be paying more than before.

Finally, If you are the reward points/rebate chaser, pay close attention to the outstanding amount.

This post has been edited by kelempap: Jun 10 2008, 10:29 PM