Low Rate Mastercard
Cashback
Get $200 cashback- Last updated on 11 Aug 2020
CUA Low Rate Credit Card
Balance Transfer
0% p.a. on balance transfers for 13 months. $0 annual fee for the first year
Purchase Rate
11.99%
Annual Fee
$0
for 12 months then $49
Purchase Rate
13.24%
Balance Transfer Rate
5.99%
for 5 months then 21.24%
Annual Fee
$59
Max Free Days
55
$20
Pros
- Balance Transfers Available
- Free supplementary cards
Card Level Standard | Number free supplementary 1 |
Interest Free Days Interest Free Days 55 | Annual Fee Annual Fee $59 |
Maximum credit limit No set max | Late Payment Fee $20 |
Minimum credit limit $500 | Over limit fee $0 |
Minimum repayment dollars $25 | Duplicate statement fee $0 |
Minimum repayment percent 2% | Supplementary card annual fee $0 |
Purchase Rate Purchase Rate 13.24% |
Cash advance rate 21.24% |
Cash advance fee 2% or $2.5 |
Balance Transfer Rate Balance Transfer Rate 5.99% for 5 months then 21.24% |
Transfer Limit 100% of the approved credit limit |
Balance Transfer Fee $0 |
Foreign Exchange Fee 3% on Mastercard |
Overseas charges Overseas charges $2.5 |
Estimated ATM Cost - |
Program name |
Rewards Available |
Minimum age 18 |
Minimum income $0 |
Eligibility conditions |
Residency |
Perks
- FREE SUPPLEMENTARY CARDS
- Cashback Get $200 cashbackApply by 28 October 2020 and spend $1,000 on eligible purchases using your new card by 31 January 2021.
Compare and review credit cards with similar features
Commonwealth Bank (CBA) is Australia’s largest bank, and the largest bank in the Southern Hemisphere. It offers customers stability and variety in its credit card options, as well as home loans, personal loans, term deposits, car insurance, savings accounts and more.
CBA is the largest Australian listed company on the Australian Securities Exchange as of August 2015 with brands including Bankwest, Colonial First State Investments, ASB Bank (New Zealand), Commonwealth Securities (CommSec) and Commonwealth Insurance (CommInsure).
CBA customers can reach customer support by contacting them via:
- Customer service (phone, email, branch)
- Mobile app
- Online banking
- Mobile banking staff
Features
The Commonwealth Bank Low Rate Mastercard offers a moderate interest rate on purchases, with a moderate number of interest-free days for a moderately low annual fee.
Balance transfers are available for a very low interest rate during the introductory period. After this time the cash advance interest rate applies, which is high.
An additional cardholder can be added to the primary account at no extra cost. And optional CreditCard Plus insurance can be taken out to cover your repayments and balance.
The Low Rate Mastercard is protected by a range of security features including Mastercard Zero Liability. A maximum spending limit can be set for the card to prevent overspending.
Mastercard Global Service provides 24/7 emergency assistance, which is provided anywhere in the world you lose your card.
As a Mastercard holder, you could access experiences and offers through Priceless Cities and Mastercard Privileges.
Pros
- Optional credit card insurance
- Balance transfers available
- Free additional cardholder
Cons
- High cash advance rate
- No rewards or points
- No complimentary insurance
Who is it good for?
If you want a Mastercard with a very low interest rate for balance transfers, this may be a suitable option.
Following the introductory offer period, the high cash advance rate applies if the balance transferred hasn’t been paid in full.
This card might be a solution if you’re looking for a credit card with a moderately low interest rate for purchases.
This credit card doesn’t come with a rewards or points program. So it may not be a suitable option if you wanted to use your credit card to accumulate points or earn rewards.
If you’re an existing Commonwealth Bank customer, you could link this credit card to other accounts. The Commbank app lets you manage your finances from the one dashboard.
The Commonwealth Bank Low Rate Mastercard comes with the latest technology, which provides a safe and secure user experience.
What RateCity says
The Commonwealth Bank Low Rate Mastercard is a standard credit card with few features. It’s not the cheapest credit card on the market regarding interest rates.
The interest rate for purchases is moderate, as is the number of interest-free days. The cash advance rate is high and comes with additional fees for the service.
With no points or rewards, the cardholder cannot earn from their spending.
The annual fee for this credit card is moderately low, which covers one additional cardholder on the account.
A standout feature of this Mastercard is optional credit card insurance. Not many credit cards in this price range offer this type of insurance.
The insurance covers the cardholder for repayments and up to a maximum card balance. This occurs if the account holder becomes unemployed or unable to make their financial commitments.
Applying/eligibility
To be eligible for the Commonwealth Bank Low Rate Mastercard, you must be at least 18 years old. You must be legally allowed to work in Australia and not currently bankrupt. Information to have for your application includes evidence of income, assets and liabilities. If you’re not a permanent resident, you may need to provide Visa details. You can apply online, over the phone or in a branch. Acceptable forms of identification include a driver’s licence, Medicare card or passport.
About Commonwealth Bank
The Commonwealth Bank of Australia – also known as CBA or Commbank – was established by the Australian government in 1911. It’s a multinational bank that provides a variety of financial services, including retail, business and institutional banking, funds management, superannuation, insurance, investment and broking services. The Commonwealth Bank is considered to be one of Australia’s big four banks and is the largest bank in the southern hemisphere. Its headquarters is located in Sydney.
Nick Bendel
Property Personal Finance Writer
A property and personal finance writer, Nick Bendel covers property, loans, credit cards, superannuation, and other bank products. Nick has previously written for The Adviser, Mortgage Business, Lifehacker, Business Insider, Yahoo Finance, and InvestorDaily, and loves getting elbow-deep in the latest ABS, APRA and RBA data.
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FAQs
The reason Equifax, Experian and Illion use different scores is because they are independent companies with their own different methodologies. As a result, a score of, say, 700 would mean different things at different credit reporting bureaus.
However, the one thing they have in common is that they divide their scores into five tiers. So if you receive a tier-two credit score from one bureau, you will probably receive a tier-two score from the others, as well.
Yes, as credit card providers look at your annual income amount as well as your occupation. Minimum income requirements tend to be between $30,000 – $40,000 for standard and rewards credit cards, however low income credit cards can have minimum income requirements as low as $15,000 per year.
If you have a bad credit score, you might encounter two main problems. First, the lower your credit score, the more likely you are to be rejected when you apply for a loan or any other credit product. Second, if your application is accepted, the less likely you are to qualify for the lowest interest rates.
There are two reasons you should check your credit rating: so you have a better understanding of your financial position, and so you can take action (if necessary) to improve your credit rating.
Lenders use credit ratings or credit scores to assess loan applications. The higher your score, the more likely you are to get approved, and the more likely you are to be charged lower interest rates and lower fees. Conversely, the lower your credit score, the less likely you are to get approved, and the more likely you are to be charged higher interest rates and higher fees.
Credit cards are a quick and convenient way to pay for items in store, online or over the phone. You can use a credit card as a cashless way to pay for goods or services, both locally and overseas. You can also use a credit card to make a cash advance, which gives you the flexibility to withdraw cash from your credit card account. Because a credit card uses the bank’s funds instead of your own, you will be charged interest on the money you spend – unless you pay off the entire debt within the interest-free period. If you pay the minimum monthly repayment, you will be charged interest. There are many different credit card options on the market, all offering different interest rates and reward options.
A credit card can be a useful financial tool, provided you understand the risks and can meet repayment obligations.
If you’re a credit card first-timer, review your options. Think about what kind of credit card would suit your lifestyle, and compare providers by fees, perks and repayments.
Once you’ve selected a card, it’s time to apply. Credit card applications can generally be completed in store, online or over the phone.
When you apply for a credit card for the first time, you must meet age, residency and income requirements. As proof, you must also provide documentation such as bank account statements.
A balance transfer credit card lets you transfer your debt balance from one credit card to another. A balance transfer credit card generally has a 0 per cent interest rate for a set period of time. When you roll your debt balance over to a new credit card, you’ll be able to take advantage of the interest-free period to pay your credit card debt off faster without accruing additional interest charges. If your application is approved, the provider will pay out your old credit card and transfer your debt balance over to the new card.
For most Australians, there are no great barriers to applying for and getting approved for a credit card. Here are some points that a lender will consider when assessing your credit card application.
Credit score: A bad credit score is not the be all and end all of your application, but it may stop you being approved for a higher credit limit. If your credit score is less than perfect, apply for the credit limit that you need, rather than the one you want.
Annual income: Most credit cards have minimum annual income requirements. Make sure you’re applying for a card where you meet the minimum.
Age & residency: You need to be at least 18 years old to apply for a credit card in Australia, and most require that you are an Australian citizen or permanent resident. However, there are some credit cards available to temporary residents.
Think of credit cards as a short-term loan where you use the bank’s money to buy something up front and then pay for it later. Unlike a debit card which uses your own money to pay, a credit card essentially borrows the bank’s money to fund the purchase. When you apply for a credit card, the bank assesses your income and assigns you a credit limit based on what you can afford to pay back. At the end of each billing cycle, which is usually monthly, the bank will send you a statement showing the minimum amount you have to pay back, including any interest payable on the balance.
Losing your credit card is a serious situation, and could land you in financial trouble. Here is a simple guide detailing what to do when you lose your credit card.
Lock you card – Contact your provider and inform them about your lost credit card. From here lock, block or cancel your card.
Keep track of transactions – Look out for unauthorised credit card transactions. Most banks protect against fraudulent transactions.
Address recurring charges – If your card is linked to recurring charges (gym membership, rent, utilities), contact those businesses.
Check credit rate – To ensure you’re not the victim of identity theft, check your credit rating a month or two after you lose your credit card.