How to Apply for Your Low Fee Credit Card
The Low Fee Credit Card by CommBank represents a valuable financial tool for those looking to manage their finances with ease and minimal costs. In today’s fast-paced world, having access to credit can be crucial, whether for emergency expenses, planned purchases, or simply for the convenience of cashless transactions.
The Low Fee Credit Card offers a range of benefits, including cashback offers, purchase security, and extended warranty insurance, all while maintaining a low monthly fee.
What makes this card particularly attractive is its accessibility—it’s designed for individuals who may not require a high credit limit or additional premium features, but still want the security and convenience of a credit card.
With features like up to 55 days of interest-free purchases and exclusive offers through the CommBank Yello Cashback program, the Low Fee Credit Card provides practical financial flexibility without the burden of excessive fees.
History of CommBank
The Commonwealth Bank of Australia, commonly known as CommBank, has a rich history dating back to its establishment in 1911. Founded by the Australian government to serve as a public savings bank and to provide general banking services to the Australian public, CommBank quickly expanded its services across the nation.
The bank played a pivotal role during both World Wars, offering financial services that supported Australia’s war efforts.
Over the decades, CommBank has evolved into one of the largest and most trusted financial institutions in Australia. The bank was fully privatised by 1996 and since then has continued to grow, embracing technological advancements to improve customer service and expand its product offerings.
Today, CommBank is known for its innovative banking solutions, commitment to sustainability, and a strong focus on meeting the financial needs of millions of Australians, including through products like the Low Fee Credit Card.
Benefits of the Low Fee Credit Card
Cashback Offers
One of the standout features of the Low Fee Credit Card is its integration with the CommBank Yello Cashback program. Cardholders can earn up to $240 in cashback by spending $500 or more per month for the first four months.
This cashback offer is personalised based on your spending habits, ensuring that the rewards you receive are relevant and useful.
Purchase Security and Extended Warranty Insurance
The Low Fee Credit Card comes with complimentary Purchase Security and Extended Warranty Insurance, provided by Cover-More. This feature adds a layer of protection to your purchases, safeguarding them against theft, loss, or damage for up to 90 days.
Additionally, the extended warranty doubles the manufacturer’s warranty up to 12 months, providing peace of mind for your larger purchases.
Low Monthly Fees and Interest-Free Period
A significant advantage of the Low Fee Credit Card is the potential to pay no monthly fees if you spend at least $300 during your statement period. If this threshold is not met, the monthly fee is just $3.
Furthermore, the card offers up to 55 days of interest-free purchases, allowing you to manage your expenses without incurring immediate interest costs.
Loan Options and Instalment Program
Flexible Payment Options
The Low Fee Credit Card offers flexibility in how you manage your payments. With a minimum credit limit of $500, the card is accessible to a wide range of users, allowing for manageable credit access without overwhelming financial commitments.
The card’s purchase interest rate stands at 20.99% p.a., with a cash advance interest rate of 21.99% p.a. For those who may occasionally need to withdraw cash or make a quick payment, these rates are competitive, though it’s advisable to use such features sparingly due to the higher costs associated with cash advances.
Instalment Program
CommBank also provides an instalment program, allowing cardholders to convert larger purchases into manageable monthly payments. This feature is particularly beneficial for those planning significant expenses, such as electronics or travel, enabling them to spread the cost over time without disrupting their monthly budget.
The instalment plan’s flexibility ensures that you can select a repayment schedule that best suits your financial situation, reducing the stress of paying for large purchases upfront.
These features make the Low Fee Credit Card a versatile tool for managing both everyday expenses and larger, planned purchases, all while keeping fees and interest costs under control.
Eligibility for the Low Fee Credit Card
Application Criteria
Applying for the Low Fee Credit Card requires meeting certain eligibility criteria. Applicants must be at least 18 years old and either a permanent resident of Australia or hold a visa that entitles them to work in Australia.
Additionally, applicants should have a good credit history, as the bank will conduct a credit check as part of the application process. A steady income is also required, although the minimum income threshold is not explicitly stated, it should be sufficient to cover your monthly expenses and potential credit repayments.
Interest Rates and Fees
The Low Fee Credit Card carries a 20.99% p.a. interest rate on purchases, which is competitive for its category. The card also imposes a late payment fee of $20 if the minimum repayment is not made by the due date. International transactions incur a 3.50% fee, so this card may not be the best option for frequent overseas travellers.
How to Apply
Application Steps
Applying for the Low Fee Credit Card is a straightforward process. You can apply online through the CommBank website or by visiting a local branch. For online applications, start by visiting the Low Fee Credit Card application page and clicking on “Apply now.”
You will be prompted to log into your NetBank account if you are an existing customer. New customers will need to create an account or proceed as a guest.
Next, fill out the application form with your personal details, including your income, expenses, and employment information. The bank may request additional documents to verify your identity and financial situation.
After submitting your application, you will receive a response, usually within a few business days. If approved, your card will be mailed to you, and you can activate it online.
VISIT THE BANK`S OFFICIAL WEBSITE TO REQUEST YOUR CARD
Opinion and Additional Tips
Pros and Cons
The Low Fee Credit Card is ideal for individuals looking for a basic credit card with minimal fees and essential features. Its cashback offers and insurance coverage provide added value, while the low monthly fee (waivable under certain conditions) makes it a cost-effective choice.
However, the card does not offer rewards points, and the interest rate is higher than that of the CommBank Low Rate Credit Card, which may be a downside for those who carry a balance.
Environmental Impact and Sustainability
CommBank has made strides in sustainability, and while credit cards do have an environmental footprint—due to factors like plastic production and paper statements—the bank offers options for digital statements and promotes the use of its mobile app, reducing paper waste.
Users are encouraged to opt for these eco-friendly alternatives to minimise their environmental impact.
Customer Service
CommBank offers several customer service channels for Low Fee Credit Card holders:
- Phone: Call 13 2221 for general inquiries or card support.
- Website: Visit CommBank’s website for more information and online support.
- Chat: Access live chat support via the CommBank website or mobile app.
- Branches: Visit any CommBank branch for in-person assistance.
- Mobile App: Use the CommBank app to manage your account, view statements, and make payments.
In conclusion, the Low Fee Credit Card by CommBank is a practical option for those seeking a no-frills credit card with essential features. Its low monthly fee, combined with benefits like cashback offers and purchase protection, make it a valuable tool for managing everyday expenses.
While it may not be the best choice for those seeking rewards points or low-interest rates on carried balances, it excels in offering straightforward, cost-effective credit access.
Did you find this guide helpful? If so, explore more credit card options tailored for Australian residents on our website.
