Oct 1, 2011
Thumbs Up From Cardholders
PETALING JAYA: Credit card holders have given the thumbs up to Bank Negara's new payment method to be implemented from today.
The new payment allocation method requires credit card issuers to use payments to pay off balances with the highest interest rate first.
In the event where the interest rates of items are the same, payment will be used to clear the items in the order of transaction date.
The new payment method would benefit consumers as it would help minimise the amount users have to pay every month.
“Users can pay off their debts faster and they can manage their finances better,” said a user, Selvaraj.
It would lessen the burden carried by card holders by encouraging them to make full payment, he added.
Universiti Teknologi MARA senior lecturer Siti Zabedah Mohd Shariff, 56, agreed that the new guidelines set by Bank Negara was convenient for those who made minimal payment on their credit cards.
“The new method will benefit card holders who can't afford to pay in a lump sum,” said Siti who used her cards to pay for travelling expenses.
Another card holder, who did not want to be named, said the new method would help users as products bought earlier could be paid for first.
“It will reduce interest in the long-term and can make users realise how much they are paying for the items that they have bought.”
The new method was part of the revised credit card guidelines issued by the central bank on March 18 this year.