Auto Balance Conversion
This programme is aimed at helping eligible customers pay off their outstanding credit card balances in a shorter period at a lower rate. This will reduce the overall interest to customers.
It is also designed to promote prudent financial management among consumers, i.e. spending within your means and paying your credit card debt faster.
Auto Balance Conversion Programme
Low Rate
13% p.a. EIR* vs. 15%-18% p.a. on your credit card unpaid balances
*EIR refers to Effective Interest Rate
Zero Fee
No processing fee at each conversion and no termination fee when you wish to early settle the instalment plan
Hassle-Free
Auto-convert your unpaid credit card balances every 12 months at a lower rate
Features
- Eligible customer will be given advance notice prior to being enrolled into the programme. The customer may decline the offer.
- Your unpaid credit card outstanding balances will be converted into 36 monthly instalments at 13% p.a. EIR*
- You must pay the instalment in full every month
- Minimum convertible amount is RM1,000
* EIR refers to Effective Interest Rate
Please note that the amount converted will be booked on your existing credit card limit. Each monthly instalment you repay will incrementally restore your available credit limit or in full once the Auto Balance Conversion is fully repaid.
How it works
Upon enrolment for this programme, your credit card outstanding balance will be assessed after payment due date and converted into 36 monthly instalments upon meeting the eligibility criteria every 12 months.
AWARENESS NOTICE
25 Jul 2019
ENROL DATE
25 Aug 2019
STATEMENT DATE
1 Sep 2019
PAYMENT DUE DATE
21 Sep 2019
CONVERSION DATE
26 Sep 2019
Next cycle eligible
for conversion
for conversion
Sep 2020 Statement
Notes:
Dates above to denote timeline of how the process works
Dates above to denote timeline of how the process works
- Citibank will auto-enrol eligible customers
- Upon enrolment, the outstanding balances will be converted by payment due date + 4 days (payment grace period)
Monthly Payment Due Illustration
This is only an illustration of minimum payment due with and without the Auto Balance Conversion with the following assumptions:
- Minimum payment due is 5% of statement balance. Customer makes minimum payment due (5%) monthly.
- There is no new retail spend or cash advance following the conversion.
- The outstanding balance consists of retail spend only and revolves at 17% p.a.
- The monthly instalment amount from Auto Balance Conversion is RM320 and 100% of instalment amount is demanded as part of minimum payment due.
Eligibility criteria
- Nationality: Malaysian
- Monthly Income: Less than or equal to RM5,000 (note that this refers to the latest verified income per Citibank’s record)
- Payment History: Payment ratio less or equal 10% (12 previous months’ average)
- Payment ratio = Total payment / Total statement balance (12 previous months)
- Your card account is current and not delinquent
Notes:
- You will not qualify for future auto conversion if your monthly income is above RM5,000.
- You will continue to pay down any outstanding instalments from earlier converted balances.
- You are encouraged to keep Citibank updated on any changes to your income level.
Please contact Citibank for the details on income update.
Opt-Out or Cancel
- Opt-out from this programme by logging on to Citibank Online or call Citibank.
- Upon opt-out, Citibank will not convert your credit card balance to an instalment plan at that point in time.
Citibank will inform you of the next balance conversion offer 12 months later if you meet the eligibility criteria. - Upon conversion of your credit card balance, you are allowed to cancel within 30 days from the date of conversion without any termination fee. This cooling-off period only applies to 1st time conversion.
- If you opt to cancel/perform early settlement on the instalment plan during the 3-year tenure, you will have to pay the outstanding principal in full. Note that there will be no early termination fee.
Frequently Asked Questions
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What is Auto Balance Conversion?Auto Balance Conversion is a credit card programme available to eligible cardmembers to automatically convert the outstanding balances into smaller instalments if the eligibility criteria are met. If your outstanding statement balance meets a minimum amount of RM1000, it will be converted into an instalment plan at 13% p.a. for 36 months. You may choose to opt-out of this programme at any time.
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How do I qualify for Auto Balance Conversion?You are eligible for the Auto Balance Conversion upon meeting the following eligibility criteria:
- Monthly income = <RM5,000 (latest verified income as per record with Citibank) and
- Payment ratio = <10% of outstanding balances over last 12 months’ average
(Payment ratio = Total payment over last 12 months / Total statement balance over last 12 months)
Eligibility will be assessed annually.
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How do I enrol for the Auto Balance Conversion?You will be automatically enrolled into the programme by Citibank upon meeting the eligibility criteria every 12 months.
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How does Auto Balance Conversion work and when does conversion happen?Upon auto enrolment to the programme, your credit card statement balance will be assessed on day 25 from the next immediate statement date (day 1). If your outstanding statement balance (excluding payment made) meets the criteria of minimum of RM1,000, it will be converted into an instalment plan as per agreed interest rate and tenure. Auto Balance Conversion will not happen to a delinquent account of which no minimum payment is made past due date. Subsequent conversions will be offered to eligible customers at a 12-month interval via an advance notice.
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What happens if I do not meet the minimum threshold of RM1,000 statement balance or eligibility criteria in the assessment month?Auto Balance Conversion will not happen. The re-assessment will happen in the following month.
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Can I cancel my plan post balance conversion?There is a 30 days grace period for cancellation post conversion for 1st time conversion. If you opt to cancel the instalment plan after this period, you will have to repay the outstanding principal in full. For subsequent conversions, if you choose to cancel the instalment plan after it has commenced, you will have to repay the outstanding principal in full.
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What if I fully settle the Auto Balance Conversion Plan before its maturity?You may at any time early settle the Auto Balance Conversion instalment amount without any early termination fee. You are required to pay the total outstanding unpaid principal in full.
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What are my monthly obligations upon a successful Auto Balance Conversion?The Auto Balance Conversion instalment amount must be paid in full every month. The monthly instalment amount will be calculated from the date when the conversion happens using a reducing balance payment method. The Effective Interest Rate is 13% p.a. and the tenure is 36 months. The first instalment (comprising of principal and interest) payable will be reflected in the next immediate credit card statement.
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What happens if I miss an instalment payment?The Auto Balance Conversion instalments form part of the Minimum Monthly Payment which must be settled by you on or before Payment Due Date. The Auto Balance Conversion instalments are billed to the credit card account monthly similar to a normal retail transaction and are subject to usual Finance Charges if you pay or had paid less than the outstanding balance appearing on your current or previous monthly statements by the Payment Due Date.
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What if I fail to fulfill my monthly repayment obligation?If you fail to pay your instalment(s) due in full for 3 consecutive months or more, all monies due and owing under the Auto Balance Conversion programme comprising of the total outstanding month instalment, the total unbilled principal with the applicable finance charge or interest and balance of all other monies due and owing under the corresponding Auto Balance Conversion programme will be due and payable, which we will be entitled to demand from you in full.
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What will happen to my credit card limit upon a successful Auto Balance Conversion?Upon successful Auto Balance Conversion, the amount converted will be booked on your existing credit card limit. Each monthly instalment you repay will incrementally restore your available credit limit or in full once the Auto Balance Conversion is fully repaid.