Low Fee Card

Balance Transfer

0% p.a. on balance transfers for 6 months

After 6 months, any unpaid balance transfers will attract the standard cash advance rate (currently 21.74%p.a. as at 1 October 2020).

RateCity Says: Wanting to keep ongoing costs down with your credit card? This low fee offering comes with a low annual fee and high amount of interest-free days.

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Purchase Rate

Purchase Rate

19.74%

Balance Transfer Rate

Balance Transfer Rate

0%

for 6 months then 21.74%

Annual Fee

Annual Fee

$30

Max Free Days

Max Free Days

44

Late Payment Fee

$15

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Purchase Rate

Purchase Rate

19.74%

Balance Transfer Rate

Balance Transfer Rate

0%

for 6 months then 21.74%

Annual Fee

Annual Fee

$30

Max Free Days

Max Free Days

44

Late Payment Fee

$15

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Pros and Cons

Pros and Cons

  • Apple Pay, Google Pay and Samsung Pay available
  • Free supplementary cards
  • Purchase protection insurance
  • No reward program
  • Late payment fee

NAB Features and Fees

NAB Features and Fees

Details

Card Level

Standard

Card Type

Visa

Interest Free Days

Interest Free Days

44

Minimum monthly repayment

2% or $25

Minimum credit limit

$1k

Maximum credit limit

No set max

Free supplementary cards

Number free supplementary

1

Instant Approval

Fees

Annual Fee

Annual Fee

$30

Annual Fee Spend Waiver

Supplementary card annual fee

$0

Late Payment Fee

$15

Over limit fee

$0

Duplicate statement fee

$7

Electronic Wallet Service

Important Rates

Rates

Purchase Rate

Purchase Rate

19.74%

Cash advance rate

21.74%

Cash advance fee

2% or $2.5

Balance Transfer

Balance Transfer Rate

Balance Transfer Rate

0%

for 6 months then 21.74%

Transfer Limit

No set max

Balance Transfer Fee

2%

Overseas spending

Foreign Exchange Fee

3% on Visa

Overseas charges

Overseas charges

$5

Estimated ATM Cost

$14

for AU $300 withdrawal

Rewards

Program name

Rewards Available

Eligibility

Minimum age

18

Minimum income

$0

Eligibility conditions

Residency

Perks

  • FREE SUPPLEMENTARY CARDS Supplementary cardholder must be over 16 years of age
  • PURCHASE PROTECTION INSURANCE Cover lasts for 62 days per year
Specials
  • Balance Transfer 0% p.a. on balance transfers for 6 months
    After 6 months, any unpaid balance transfers will attract the standard cash advance rate (currently 21.74%p.a. as at 1 October 2020).

Pros and Cons

  • Apple Pay, Google Pay and Samsung Pay available
  • Free supplementary cards
  • Purchase protection insurance
  • No reward program
  • Late payment fee

NAB Features and Fees

Details

Card Level

Standard

Card Type

Visa

Interest Free Days

Interest Free Days

44

Minimum monthly repayment

2% or $25

Minimum credit limit

$1k

Maximum credit limit

No set max

Free supplementary cards

Number free supplementary

1

Instant Approval

Fees

Annual Fee

Annual Fee

$30

Annual Fee Spend Waiver

Supplementary card annual fee

$0

Late Payment Fee

$15

Over limit fee

$0

Duplicate statement fee

$7

Electronic Wallet Service

Important Rates

Rates

Purchase Rate

Purchase Rate

19.74%

Cash advance rate

21.74%

Cash advance fee

2% or $2.5

Balance Transfer

Balance Transfer Rate

Balance Transfer Rate

0%

for 6 months then 21.74%

Transfer Limit

No set max

Balance Transfer Fee

2%

Overseas spending

Foreign Exchange Fee

3% on Visa

Overseas charges

Overseas charges

$5

Estimated ATM Cost

$14

for AU $300 withdrawal

Rewards

Program name

Rewards Available

Eligibility

Minimum age

18

Minimum income

$0

Eligibility conditions

Residency

Perks

  • FREE SUPPLEMENTARY CARDS Supplementary cardholder must be over 16 years of age
  • PURCHASE PROTECTION INSURANCE Cover lasts for 62 days per year
Specials
  • Balance Transfer 0% p.a. on balance transfers for 6 months
    After 6 months, any unpaid balance transfers will attract the standard cash advance rate (currently 21.74%p.a. as at 1 October 2020).
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FAQs

What happens if I have a bad credit score?

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.

Why should I check my credit rating?

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.

Why do different credit reporting bureaus use different scores?

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.

Can I get a credit card on part-time/casual work?

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.

How to get a credit card for the first time

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.

How easy is it to get a credit 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.

What's the best credit card for rewards?

There is no one-size-fits-all best rewards credit card. It's best you research what type of rewards program you'd like, as well as the fees, interest rate and conditions associated with those types of cards before making a choice. 

Rewards credit cards can also come with high annual fees that may end up nullifying the rewards, so think how often you use the card to decide whether the benefits outweigh the extra cost for you. A card with a lower annual fee might require a lot of spending to get any useful rewards, while another card with a higher annual fee might need fewer purchases to get a reward. 

How many numbers are on a credit card?

The numbers on your credit card actually follow a universal standard which is used to identify specific functions. Each credit card has a different amount of numbers. Visa and Mastercard have 16, American Express has 15 and Diner’s Club has 14. 

The first number on a credit card always identifies what type of credit card it is. Visa cards start with a 4, whereas Mastercard starts with a 5 and American Express with a 3. The remainder of the digits represent the account number, including the last number which is used to verify that your credit card is actually valid. 

Credit cards also have additional verification numbers, which are mainly used when the card isn’t present for phone and online purchases. These are the three-digit numbers on the back of Visa and MasterCard or the four-digit numbers on the front of an American Express card.

How to make a credit card online

If you’re wondering about how to make a credit card online application, here are some steps to follow:

  • Test the market. Many credit card options are available online. Compare providers by fees, interest and perks to ensure you’re getting the best deal.
  • Complete the application. Once you’ve selected a card, head to the provider’s website and complete the online credit card application form. Forms vary by providers.
  • Provide details. Most cards require you to meet age, residency, income and credit status condition, and you need to provide details like a bank account statement to prove this.
  • Review details. Ensure the information you’ve entered is correct.

How to pay a credit card

There are a few ways to pay a credit card bill. These include:

  • BPAY - allows you to safely make credit card payments online.
  • Direct debits - set up an automatic payment from your bank account to pay your credit card bill each month. You can choose how much you want to pay of your credit card bill when you set up the auto payments.
  • In a branch.
  • Via your credit card provider's app.

What is CVV on a credit card?

CVV stands for ‘card verification value’, and is also sometimes referred to as a CVC or card verification code.

A CVV code is usually needed when the card is used online or over the phone as an anti-fraud measure. Without the cardholder being physically present to sign or verify the purchase, the CVV provides an extra layer of protection. 

If you’re using Mastercard or Visa, the CVV is the three digits located on the back of the card. If you’re using an American Express, the CVV is usually four digits and is on the front of the card.

Do you need a credit card to get a loan?

You do not need a credit card to get a loan, but you usually need to have a credit history. Without a credit history, a financial institution cannot assess your ‘credit worthiness’, or your capacity to pay off the loan.

If you don’t have a credit card, your credit history can reflect any record of paying off an asset. Without any credit credit history, you’re limited in the type of loans you can apply for. But you may be able to obtain a secured loan against an asset. For more information on improving your credit score, go here

How do you use credit cards?

A credit card can be an easy way to make purchases online, in person or over the phone. When used properly, a credit card can even help you manage your cash flow. But before applying for a credit card, it’s good to know how they work. A credit card is essentially a personal line of credit which lets you buy things and pay for them later. As a card holder, you’ll be given a credit limit and (potentially) charged interest on the money the bank lends you. At the end of each billing period, the bank will send you a statement which shows your outstanding balance and the minimum amount you need to pay back. If you don’t pay back the full balance amount, the bank will begin charging you interest.

Which credit card has the highest annual percentage rate?

The credit card market changes all the time, so the credit card with the highest annual percentage rate is also liable to change.

Keep in mind that credit card interest rates are expressed as a yearly rate, or annual percentage rate (APR). A low APR is generally good but also consider:

  • There can be different APR's for each feature of the card (e.g. purchases may have an APR of 14 per cent, while cash advances on same card could have an APR of 17 per cent.
  • Credit cards with a variable rate can change throughout the year, affecting your APR, so check the full details.
  • If you pay your balance in full every month, having the lowest APR is not as important as the other fees associated with the card. However, if you carry a balance from month to month, then you want the lowest APR possible.

How do you cancel a credit card?

It’s important to cancel your old cards to avoid any additional fees. Unless you’re doing a balance transfer, you’ll need to pay the outstanding balance before you cancel your credit card. If you’ve opted for a card with reward points, make sure you redeem or transfer the points before you close your account. To avoid any bounced payments and save yourself an admin headache, redirect all your direct debits to a new card or account. Once you’ve done all the preparation, call your bank or credit card provider to get the cancellation underway. Once you receive a confirmation letter, destroy your card and make sure the numbers aren’t legible.

Is instant approval possible for credit cards?

Instant approval may be possible – but please note that the term may be misleading. “Instant” approval tends to mean that when you apply online the lender will let you know the likeliness of your eligibility for a credit card within 60 seconds of receiving your application.

Are credit checks mandatory?

In Australia it is impossible to get a credit card without the provider performing a credit check first. This is for your benefit, as it helps to prevent you from falling into avoidable debt.

What is the lowest monthly repayment on my credit card?

As a rule of thumb, this tends to be around 2-3 per cent of the outstanding balance. You can choose how much you want to repay each billing period as long as it is higher than this minimum required amount.

Can we pay stamp duty by credit card?

Different states also have different rules about whether you can pay stamp duty with a credit card. Check the payment options for stamp duty on your local state revenue office website.

Some allow payments only from a savings or chequing account, whereas others allow payment through BPAY using your credit card. Also read the fine print to see if BPAY payments on your credit card are considered cash advances, as this could attract a higher interest rate.

How to calculate credit card interest

Credit card interest can quickly turn a manageable balance into unmovable debt. So being able to understand how interest rates translate into dollars is an important skill to acquire.

The common mistake people make is focusing on the credit card’s annual percentage rate (APR), which often sits between 15 and 20 per cent. While the APR does provide a rough idea of how much interest you’ll pay, it’s not entirely accurate.

This is because you actually accrue interest on your balance daily, not annually. So, you need to work out your daily periodic rate (DPR). To do this, divide your card’s APR by the number of days in a year (e.g. 16.9 per cent divided by 365, or 0.05 per cent). You can then apply this figure to the daily balance on your credit card.