CIMB Bank Balance Transfer plan has been extended to end of December 2011. The 6 months balance transfer 0% interest plan remains, however, the 12 months balance transfer 1% interest plan is no longer being offered.
For those who are interested to do balance transfer with CIMB, take note that there is a new application form. Unlike the previous balance transfer programme application form, the new one no longer allows you to choose between 6 months or 12 months plan. Above is a picture of the new brochure and the older brochure (together with Maybank Balance Transfer Scheme) is shown below:
For those where are interested to download the CIMB Direct Access 0% 6 Months Balance Transfer application form in pdf format, you may go to CIMB website or click here.
So now we have CIMB and Public Bank offering 0% interest Balance Transfer for 6 months plan whereas Maybank is offering 0% interest for 12 months balance transfer plan. The main difference between CIMB and Maybank plans are as follows:
- CIMB Bank's plan you only need to pay minimum 5% each month and by the end of the sixth month, you are required to settle in full to avoid interest charges.
- In Maybank's balance transfer plan, the balance transfer amount is divided equally into 12 installments.
For those of you who are new to Balance Transfer plans, to learn more about it, please read my previous articles:
Click here to read my very first post on Balance Transfer written in 2009 titled RM103Billion Credit and Balance Transfer. Read this article to get a general idea about balance transfer and why people do it. At that time, there were no 0% interest plan unlike this year and last.
Click here to read my article in January 2011 titled Credit Card Balance Transfer - 0% Free Interest Loan Again. In this article, I mentioned about previous balance transfer plans offered by various banks such as Alliance, Public Bank, Hong Leong Bank and EON Bank too.
Click here to read about benefit of doing Balance Transfer with 0% Interest even if have been payng in full monthly. Tip on how to earn pocket money.
Click here to read how CIMB Balance Transfer works. In this article I gave an example on a Balance Transfer done with CIMB and how payments are made.
Click here to read about Maybank 0% Interest 12 Months Balance Transfer Plan extended to 31 December 2011.
After reading the above articles, you would have noted that I keep repeating that Balance Transfer Plans are traps by banks to entice you to spend more, especially for those who have been paying in full every month.
For those who are paying interest on their current outstanding, these 0% interest plans are really good as it give us the opportunity to save on interest charges, but like I said in the very first post in 2009, if you are in debt and you go do balance transfer and then utilize the credit again, then you are asking for problems. People in this situation should leave their card(s) it in the drawer or even card the card(s) in half until the balance transfer is fully paid so that we are debt free once again.
Here's are tips for current CIMB and Direct Access cardholders who have CIMB balance transfer accounts.
- You can have multiple balance transfer accounts with CIMB Bank as long as you have credit available.
- You can transfer your existing Outstanding Balance in your CIMB Balance Transfer Account to Maybank 0% 12 Months Balance Transfer Plan :)
In my last previous post on Balance Transfer, I reckoned that these 0% Balance Transfer would not be extended for long as interest rates have been going up since last year. And CIMB have terminated the 12 months Balance Transfer Plan which was a surprise to me since that plan charged 1% interest. So it looks like CIMB is not so eager to give "cheap" credit for longer tenure. Anyway, spend wisely with your credit card and practice to never ever pay interest to the banks so that you are debt free.
OTHER RELATED POSTS