The Commonwealth Bank Low Fee credit card is designed to appeal to those people who are diligent in paying off their credit card balance in full each month. Provided by one of Australia’s Big Four banks, this card offers existing Commonwealth customers the chance to avoid paying an annual fee for the first year. This is then also waived in future years if a minimum $1,000 is spent on the card in the previous twelve months. Not a terribly demanding figure, considering that works out to just over $83 per month. For customers who are new to the bank, the Commonwealth Bank Low Fee credit card charges just $24 per year.
The reason this card is suitable for customers who pay down their balance in full each month is because of the high interest rate it charges (1% p.a. for 5 months (reverts to 20.24% p.a.)) if you don’t. There are certain categories of credit cards, and each has one or two features that excel more than the others. If you regularly keep a balance on your credit card from one month to the next, then you will be charged interest, thus you would need a card that offers a low rate of interest (close to 10%). The Commonwealth Bank Low Fee credit card is in the low/zero fee category, and the trade-off is that interest rates are usually higher. You can’t have everything.
The Commonwealth Bank Low Fee credit card also gives you the chance to make a balance transfer from a non-Commonwealth Bank credit card at a rate of 5.99% p.a. for 5 months. There are better deals out there on balance transfers, but it’s useful if you have a small balance to transfer that you don’t envisage lasting beyond that time, and then you expect to return to clearing your debt in full.
Although this is a fairly no frills card in that it lacks a rewards program (which can encourage overspending), you do benefit from some great features:
Commonwealth Bank Low Fee credit card key features
- Preferential pricing policy, with a low annual fee of just $0 Annual Fee for the first year ($24 thereafter), waived for existing Commonwealth customers for the first year, and beyond if they spend $1,000 or more each year
- Interest rate on purchases of 1% p.a. for 5 months (reverts to 20.24% p.a.) p.a.
- Interest rate on cash advances of 21.74% p.a. p.a
- 5.99% p.a. for 5 months on balance transfers
- Interest-free credit of up to 55 days on purchases
- Commonwealth’s zero liability policy on fraudulent use ensures secure Internet shopping, provided you follow the Conditions of Use
- Security chip protection and the latest fraud detection, monitoring your account 24/7 for suspicious transactions
- MasterCard PayPass, letting you pay for purchases of $100 or less by simply swiping your card over a PayPass reader
- Additional card at no extra cost
- Access to an exclusive online booking service for theatre, musical and sporting events with MasterCard Applause
- MasterCard accepted at over 29 million locations globally
- 24/7 emergency overseas assistance, with representatives who speak your language
- CreditCard Plus, an optional insurance to cover your minimum monthly repayments up to a maximum of $15,000 in the event of death, disablement and involuntary unemployment
If you want a credit card that is cheap or even free to run, then the Commonwealth Bank Low Fee credit card may be just what you are looking for.
Read the official terms and conditions
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Posted on Monday, September 27th, 2010 at 4:06 pm
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