AUTO BALANCE CONVERSION & Benefits & Privileges

AUTO BALANCE CONVERSION & Benefits & Privileges

Effective rate at 13% p.a.

Auto balance conversation of outstanding credit card balances at an Effective Interest Rate (EIR) of 13% p.a. for CIMB Bank credit cardholders and at the Payable Facility Charges (PFC) rate of 13% p.a. for CIMB Islamic credit cardholders. Subject to Terms and Conditions.

No processing fee and no cancellation fee for early settlement.

Auto-convert your unpaid credit card balances* every 12 months at a lower rate.

You can decide to opt out from future conversion.

Key Features

Eligible credit cardholders will be automatically enrolled into the programme

Outstanding credit card balances* will be converted to 36 monthly instalments

Minimum convertible amount is RM1,000

Convertible amount = total statement amount* – total payment made

How does Auto Balance Conversion work?

Upon enrolment for this programme, your outstanding credit card balance* will be assessed after the latest payment due date and converted into 36 monthly instalments upon meeting the eligibility criteria every 12 months.

CIMB Bank/CIMB Islamic will auto-enroll eligible customers. Upon enrolment, the outstanding statement balance* will be converted after payment due date +5 calendar days.

Payable Facility Charges** : 13%

Eligibility

  • Nationality: Malaysian
  • Monthly income: Less or equal to RM5,000 (note that this refers to the latest verified income per your credit card issuer’s record)
  • Payment history: Payment ratio less or equal to 10% (average of 12 previous months)
  • Payment ratio = Total payment / total statement balance* (12 previous months)
  • Your card account is current and not delinquent
  • Important Notes

    13% p.a. Effective Interest Rate (EIR)/ Payable Facility Charges (PFC)** is equivalent to 7.1% p.a. Flat Rate.

    Effective Interest Rate (EIR) is the interest rate on a financial product with annual compounding.

    This is only an illustration of the minimum payment due with and without Auto Balance Conversion with the following assumptions:

  • Minimum payment due is 5% of statement balance*. Customer makes minimum payment of 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 RM505 and 100% of instalment amount is demanded.
  • *For CIMB Islamic Credit Card, the outstanding amount/statement balance that will be converted into Auto Balance Conversion is outstanding principal amount only.

    **The PFC rate will be subject to the cardholder’s payment history (in accordance to BNM Credit Card-i Guideline) and the monthly rebate that shall be granted by the Bank on the Yearly Facility Charges during Auto Balance Conversion period.

    ***For Credit Card-i, the Bank will grant a rebate where applicable for early settlement of the installment plan.

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    How do I use my Direct Federal AutoCheck?

    Use your Direct Federal AutoCheck like any other check.

    Use your Direct Federal AutoCheck like any other check. Make it payable to the party you’re buying your car from, and enter the appropriate amount. Endorse the back of the AutoCheck and ask the seller to do the same. Make sure the required information is filled in on the back. (Note: you cannot pay off a Direct Federal auto loan with an AutoCheck.)

    What is considered a “New Auto” versus a “Used Auto”?

    At Direct Federal, the most recent two model years are considered “new.” Model years earlier than the most recent two are considered “used.”

    At Direct Federal, the most recent two model years are considered “new.” Model years earlier than the most recent two are considered “used.” We add a new model year each year on June 1st. For example, beginning June 1, 2015, the most recent two model years are 2016 and 2015, both of which would be “new.” Model years 2014 and earlier are “used.” You can finance “used” vehicles as old as 2007.

    How much can I borrow?

    You can borrow 106.25% of the value of your car (subject to our maximum auto loan limit of $100,000).

    You can borrow 106.25% of the value of your car (subject to our maximum auto loan limit of $100,000). This allows you to finance the entire purchase price plus the sales tax.

    How long do I have to use my Direct Federal AutoCheck?

    You have 60 days to use your AutoCheck.

    You have 60 days to use your AutoCheck. If, for whatever reason, you do not use the AutoCheck during that time period and need another one, simply call us at 781.455.6500.

    What happens if interest rates change between the time I apply and the time I use my AutoCheck?

    If rates rise from the time you apply until the time you use your Direct Federal AutoCheck, you will get the lower rate that was in effect when you applied.

    If rates rise from the time you apply until the time you use your Direct Federal AutoCheck, you will get the lower rate that was in effect when you applied. If rates fall from the time you apply until the time you use your AutoCheck, you will get the rate in effect at the time you use your check.

    What if I need more money?

    If you realize you need more money to finance your purchase once you start shopping for your car, simply call us at 781.455.6500.

    If you realize you need more money to finance your purchase once you start shopping for your car, simply call us at 781.455.6500. We’ll review your request and if approved, send a new Direct Federal AutoCheck to you that day.

    What types of vehicles can I finance with my Direct Federal AutoCheck?

    You may finance automobiles, SUVs, pickup trucks and minivans for consumer use.

    You may finance automobiles, SUVs, pickup trucks and minivans for consumer use. You may not use your Direct Federal AutoCheck to finance boats, motorcycles, RVs or campers or any vehicles for commercial use.

    When is my first payment due?

    Your first payment is due on the 30th of the month following the month you use your AutoCheck.

    Your first payment is due on the 30th of the month following the month you use your AutoCheck. For example, if you use your Direct Federal AutoCheck during September, your first payment will be due on October 30.