Financial Behavior of Credit Cardholders on the Implementation of Tiered Interest Rate

It is crucial for any individual, families, and other aggregate well-being to have knowledge, information, and education on financial literacy to facilitate them to make a significant financial decision that may affect their lives as well as the financial health of the country. In July 2008, Bank Negara Malaysia has implemented a tiered pricing on credit card as a measure to promote and educate the card users to be financially disciplined. The research indicates that the implementation creates dissatisfaction among cardholders especially those who make partial or minimum repayment monthly where a tiered finance fee on the 13th month is charged depending on the tracking repayment record for the past 12 months and the 20-day interest-free period is no longer applicable to them.