5 Best Credit Cards for Balance Transfer in Malaysia

The one effective strategy in tackling credit card debt is to consider using balance transfer credit cards. If you're unfamiliar with this approach, this article is designed to provide answers and guidance.

Balance transfer is the process of moving your existing credit card balances from one or multiple cards to a single card that offers a lower interest rate, typically for a fixed introductory period. 

This  interest rate can sometimes be as attractive as 0%. When used responsibly, a balance transfer in Malaysia can simplify your payments and save you money. However, it's also essential to understand the fine print.

Balance transfers can be a valuable tool, but it's crucial to use them wisely and understand the nuances. Let's explore the five best credit cards for balance transfer to consider.

The Top 5 Balance Transfer Credit Cards in Malaysia

These cards offer a low introductory interest rate for a period of time, typically 6-12 months. Let's look at some of the credit cards for balance transfer, based on their introductory interest rates, fees, and other features:

Best Balance Transfer Credit Card	Features
Alliance Bank Visa Platinum	0% Balance Transfer for 6 months for New-to-Bank Cardmembers FREE balance transfer fees ZERO first year fees Min. monthly income RM 2,000
Standard Chartered Visa Platinum	Fixed balance transfer rate of 5.99% for 12 months Convert outstanding credit card balance into affordable instalments with Flexi-On-Balance Plus  Convert large purchases to instalments using FlexiPay Plus Enjoy RM1 deals and other promotions all year long Min. monthly income RM3,000
Maybank 2 Gold Cards	0% fixed balance transfer rate Enjoy benefits from Maybank Visa/Mastercard and American Express 5% cashback on all weekend purchases on American Express ZERP annual fees for life Min. monthly income RM2,500
UOB One Card	0% balance transfer interest for fixed-pay plan until 18 months Get 10% cashback  on petrol, dining, selected grocers and Grab transactions Unlimited 0.2% cashback on all other retail purchases, no minimum spend required Min. monthly income RM2,000
AEON Gold Visa	3% balance transfer rate for first 12 months Up to 8% cashback twice a month at AEON or AEON BiG stores 3X points for every RM1 overseas spend 3X access to Plaza Premium Lounge yearly Min. monthly income RM3,000

1. Alliance Bank Visa Platinum Credit Card

Alliance bank's Visa Platinum is a card that offers a balance transfer fees and this is one feature that makes it one of the top balance transfer credit cards in our books. 

Additionally, you can also look forward to a low rate credit card balance transfer, which is 0% interest rates if you pay all your outstanding balance within a period of 6 months. After this, you'll be charged 9.88% on any outstanding transferred balances.

Apart from helping you settle your outstanding credit card debt, the Alliance Visa Platinum is one that rewards you with Timeless Bonus Points, a system whereby you accumulate points that never expire when you spend on certain things. These points can then be used to make redemptions from Alliance Banks's Reward Centre 

• 8X Timeless Bonus Points for Online & eWallet spend
• 3X Timeless Bonus Points for Overseas & Dining spend
• Timeless Bonus Points never expire

Eligibility

• Minimum salary income: RM2,000
• Annual fee: of RM120 (waived in the first year)

2.  Standard Chartered Visa Platinum Card

When you choose a Standard Chartered card, you're in for one of the best credit cards for balance transfer with the most generous offers overall. 

This card has made it into our list not because of its low balance transfer rates, but because it allows you to enjoy a consistent interest rate of 5.99% per annum for as long as 12 months. This gives you a longer time to settle debts which may not be possible in less time than that.

Currently, Standard Chartered offers easy instalment plans, called FlexiPay Plus (FOP) and Flexi-On-Balance Plus (FOB). The FOP allows you to convert large transactions or purchases into instalments whereas the FOB lets you convert outstanding balances already on your SC credit card into an instalment plan. 

Additionally, you can enjoy deals and promos as low as RM1 from many vendors nationwide no matter which Standard Chartered card you own. 

Eligibility

• Minimum salary income: RM3,000
• Annual fee: RM120 (Annual fee is waived for the first 2 years, subsequent years waived with minimum spend of RM12,000 per annum.)

3. Maybank 2 Gold Card

The Maybank 2 Gold card allows you to enjoy the benefits of two cards in one account. Those who wish to employ their balance transfer plan will enjoy 0% per annum interest rate for the first 6 months, and a reasonable fee of 1.88% on the transferred amount, which can be paid once up-front. 

Additionally, users will be able to gather benefits from both cards in this account. For the AMEX, you can get 5% cashback on all purchases except government spend and utilities on weekends. Weekday spends will earn you 5X TreatPoints for every RM1 spent. 

For Mastercard and Visa, you'll earn 1X TreatPoints for every RM1 spent so this account rewards you no matter which card you charge your transactions to. 

Eligibility

• Minimum salary income: RM2,500
• Annual fee: RM0 

4. UOB One Card

UOB cards offer an attractive fixed pay balance transfer plan whereby you pay the same fixed amount each month on any UOB card. Other balance transfer plans are available too but they don't offer interest free rates on your repayments. 

The UOB One card is also great for those who love cashback as the card offers up to 10% cashback on petrol, dining, selected grocers and Grab transactions. You'll also enjoy up to 0.2% cashback for all other transactions. 

Eligibility

• Minimum salary income: RM2,000
• Annual fee: RM120

5. AEON Gold Visa

Aeon also has an attractive balance transfer plan spanning up to 36 months. This gives leeway for those who have significantly large outstanding balance on their credit cards more time for repayments. Here are the interest rates 

This card is great for you if you shop often at AEON stores as it allows for up to 8% cashback as well as plenty of points to be collected.

Additionally, it also rewards you for travelling, such as collecting up to 3X points for RM1 overseas spend, access to Plaza Premium Lounge and up to RM200,000 in travel insurance. 

Eligibility

• Minimum salary income: RM3,000
• Annual fee: RM95

How to make the most of your Balance Transfer?

To ensure a safe and successful balance transfer, follow these steps:

1. Create a Payoff Plan

Calculate the exact amount you need to pay off your balance before the introductory period expires. Failing to do so may result in additional costs, defeating the purpose of the balance transfer.

2. Understand the Balance Transfer Fees

Balance transfer agreements often require you to pay a processing fee, which is usually a percentage of the balance transferred. Evaluate whether the money you'll save on interest outweighs these fees. Occasionally, you can find balance transfer programs with no transfer fees.

3. Avoid Adding More Debt

A balance transfer is a tool to reduce your existing debt, not an invitation to go shopping. Adding more charges to your credit card only deepens your financial hole and makes it harder to pay off your balance.

Balance transfer credit cards can be a great way to save money on interest if you have a high credit card balance. However, it is important to choose the right card for your needs and to use it responsibly. By following the tips above, you can use a balance transfer credit card to pay off your debt faster and save money on interest.

The Psychology of Balance Transfers

While many credit card companies provide an initial 0% interest rate, it's crucial to be aware that this rate can increase significantly after the introductory period. Falling into the trap of complacency can lead to increased debt. To make a balance transfer work for you, it's vital to stick to your repayment plan and not let the lower interest rate lure you into a false sense of security.

Things to consider when choosing a balance transfer credit card

1. Introductory APR

The introductory APR is the interest rate that you will pay on your balance transfer for a period of time. Typically, the introductory APR is 0%, but this can vary depending on the card.

2. Upfront fees

Some balance transfer credit cards charge an upfront fee for transferring your balance. This fee is typically a percentage of the balance you are transferring.

3. Balance transfer limit

The balance transfer limit is the maximum amount of money that you can transfer to your new card. This limit is typically a percentage of your credit limit.

4. Annual fee

Make sure you choose a balance transfer credit card within your means.

In Conclusion

Balance transfers offer a way out for those who are struggling with heavy credit card debts. Remember that whatever financial burdens you're facing with your outstanding debts, there's a way out. 

These credit cards with the best balance transfer offers lets you pay what you can afford. In any case you can always negotiate with the banks for a repayment plan that is within your affordability. 

Any small step you make towards debt resolution is a significant achievement that you can be proud of. For more financial tips, subscribe to our weekly newsletter at the bottom of our home page.