Westpac unveils basic, low-rate credit card



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Westpac has become the first major bank to offer a credit card with a purchase interest rate under 10 per cent.

The bank’s new Lite Visa card has an interest rate of 9.90 per cent and comes with a 45-day interest-free period.

Lite is designed for customers who want a basic credit card. That means a lower interest rate and fewer fees, as well as no rewards and no cash advances.

Lite has a $9 monthly card fee, but doesn’t impose a fee for foreign transactions or missed payments.

That is a point of difference from many other credit cards, which impose an annual fee plus other charges.

Customers will be able to request a credit limit between $500 and $4,000.

New credit card feature

Westpac has also unveiled a new feature called SmartPlan, which applies to all credit card holders.

This is an online, self-service tool that helps customers pay down their credit card balance or individual large purchases by instalments.

Westpac consumer bank chief executive George Frazis said these two new initiatives promote competition while underlining Westpac’s commitment to responsible lending.

Westpac’s range of personal credit cards

Lite

“Designed for customers who want a basic credit card with no rewards or access to cash advances, fewer fees, and a low interest rate and credit limit.”

  • Interest rate of 9.90 per cent
  • Up to 45 days’ interest free for purchases
  • Credit limit of $500 to $4,000
  • $9 monthly card fee

Standard cards – Low Rate

“Designed for customers who want a low rate on purchases, no rewards and a flexible credit limit.”

  • $59 annual card fee
  • Up to 55 days’ interest free for purchases
  • Interest rate of 13.49 per cent
  • No rewards

Standard cards – 55 Day

“Designed for customers who don’t want to pay an annual card fee but still want acess to interest-free days for purchases.”

  • $0 annual card fee (provided minimum annual spend of $5,000)
  • Up to 55 days’ interest free for purchases
  • Interest rate of 19.84 per cent
  • No rewards

Standard cards – 55 Day Platinum

“Designed for customers who want to keep annual card fees down but have ongoing platinum benefits (insurance).”

  • $0 annual card fee (provided minimum annual spend of $10,000)
  • Up to 55 days’ interest free for purchases
  • Interest rate of 19.84 per cent
  • Platinum benefits (insurance)

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