How to Apply for your CommBank Low Rate Credit Card
The CommBank Low Rate Credit Card is designed for those seeking a straightforward credit option with lower interest rates on purchases. With a purchase interest rate of 13.99% p.a. and a manageable monthly fee of $6, this card helps reduce the cost of carrying a balance compared to other standard credit cards.
It also provides up to 55 days of interest-free purchases when you pay off your balance in full each month.
Cardholders benefit from features like secure internet shopping and the ability to set spending caps to better manage their finances. Additionally, the card offers access to the CommBank Yello Cashback offer, which rewards users with cashback on eligible purchases through personalized offers.
This makes the card an attractive option for budget-conscious consumers looking to minimize costs without sacrificing convenience.
Benefits of the CommBank Low Rate Credit Card
The CommBank Low Rate Credit Card is a practical choice for individuals looking to save on interest with a competitive purchase rate. Offering a balance of affordability and convenience, this card is designed for day-to-day spending without the higher costs associated with premium or rewards cards.
Below are six key benefits that make this card appealing for those managing their finances with lower fees and interest rates.
Low Purchase Interest Rate
The Low Rate Credit Card offers a purchase interest rate of 13.99% p.a., which is considerably lower than the standard credit card rate in Australia.
This lower interest rate can help cardholders manage their debt more effectively by reducing the interest accrued on unpaid balances.
Up to 55 Days Interest-Free on Purchases
For those who regularly pay off their balance in full, this card offers up to 55 days of interest-free purchases.
This feature allows cardholders to avoid interest charges on everyday spending if the balance is cleared by the due date, giving some breathing room for short-term expenses.
Affordable Monthly Fee
The card charges a manageable monthly fee of $6, amounting to $72 annually.
This straightforward fee structure is lower compared to many other credit cards that come with higher annual fees, making it an affordable option for budget-conscious users.
CommBank Yello Cashback Offers
Cardholders can access cashback offers through the CommBank Yello program. This feature provides personalized cashback rewards based on previous spending habits. By spending at eligible retailers, users can receive cashback on purchases, adding extra value to everyday spending.
Note: At the time of writing this guide (September 2024), CommBank is promoting a cashback offer where you can earn up to $400 when applying for the Low Rate Credit Card.
Cardholders can receive $100 each month for the first four months, provided they spend $500 or more during each month. This offer, which started on 23 July 2024, is available to customers who are part of the CommBank Yello program. As with any promotional offer, terms and conditions apply.
No Additional Fee for Extra Cardholders
The Low Rate Credit Card allows you to add cardholders without any extra charge.
This is a useful feature for families or households that share expenses, enabling multiple users to access the same account while avoiding additional fees.
Enhanced Security Features
To ensure safety and convenience, the card includes features like fraud protection and the ability to lock, block, or limit your account if the card is lost or stolen. This offers peace of mind for cardholders, especially when managing finances or shopping online. You can enjoy benefits like purchase security and extended warranty insurance.
This card strikes a balance between affordability and functionality, making it a good option for individuals who want to avoid high interest rates and excessive fees while still enjoying essential cardholder benefits.
Prerequisites to Obtain the CommBank Low Rate Credit Card
To apply for the CommBank Low Rate Credit Card, applicants need to meet the following criteria:
- Age: You must be at least 18 years old.
- Residency and work status: You must have the legal right to work in Australia. Temporary residents may apply, but additional conditions might apply depending on the visa status.
- Credit rating: A good credit rating is required, with no current bankruptcies. Your financial situation will be assessed to ensure you can manage the credit limit offered.
- Income and employment: While no specific minimum income requirement is mentioned, applicants will need to provide details about their income, employment, and financial obligations. These are necessary for responsible lending assessments.
- Identification: Proof of identity is needed, such as an Australian driver’s license, passport, or Medicare card.
CommBank as a Leading Financial Institution
CommBank is one of Australia’s leading financial institutions, renowned for its comprehensive range of banking, financial, and investment services. Established in 1911, the bank has grown into a major player in both domestic and international markets, serving millions of customers worldwide.
With a strong focus on innovation, CommBank continually adapts to the evolving needs of its clients by offering cutting-edge digital banking solutions, such as the industry-leading CommBank app.
Its extensive network of branches, ATMs, and online platforms ensures accessibility and convenience for both personal and business banking.
The bank is also committed to corporate responsibility, promoting sustainable practices, and supporting community initiatives.
Through its diversified services, stable performance, and customer-centric approach, CommBank maintains its position as a cornerstone of Australia’s financial system, contributing to the broader economy while meeting the financial needs of individuals and businesses alike.
Who is this Card for?
The CommBank Low Rate Credit Card is aimed at individuals looking to manage their finances with lower interest rates on everyday purchases. It suits those who may carry a balance from month to month and want to minimize the costs associated with interest.
With a purchase rate of 13.99% p.a. and a manageable $6 monthly fee, this card is ideal for budget-conscious consumers or those who prioritize practicality over rewards or premium features. It’s also a good fit for those looking for basic security features and an easy-to-manage credit limit.
Step by Step to Apply for the Card
To apply for the CommBank Low Rate Credit Card, follow these steps:
- Visit the official page: Head to the CommBank website and navigate to the Low Rate Credit Card page.
- Go to the application form: press the “Apply” button to go to the application form and start the process
- Fill in your financial details: Complete the online form by entering your personal and financial information. This includes your income, employment status, and any current financial commitments.
- Choose a credit limit: Specify your preferred credit limit based on your financial situation.
- Provide identification: Upload your identification documents, such as your Australian driver’s license, passport, or Medicare card.
- Submit the application: Once all details are completed, submit the application and wait for a decision, which is usually processed quickly.
- Await for approval: if you are approved, the Bank will send your card to the address provided
Existing CommBank customers can also apply directly through NetBank or the CommBank app.
If you prefer to apply through the app, you can download it from the following links:
CommBank Low Rate Credit Card Pros and Cons
TheCommBank Low Rate Credit Card comes with its fair share of pros and cons, making it important to evaluate whether it fits your financial needs.
Below is a breakdown of the pros and cons of this card:
Pros
- Low purchase interest rate: At 13.99% p.a., the interest rate on purchases is lower compared to many other cards, which helps if you carry a balance.
- Up to 55 days interest-free: You can benefit from up to 55 days of interest-free purchases, provided you pay off your balance in full.
- Affordable monthly fee: With a $6 monthly fee (amounting to $72 annually), it’s a cost-effective option for those who need a basic credit card.
- Free additional cardholder: The card allows you to add a second cardholder at no additional charge, which is convenient for families or shared accounts.
- Cashback offers: Eligible customers can earn up to $400 cashback in the first four months through the CommBank Yello program.
Cons
- High cash advance interest: The card comes with a 21.99% p.a. interest rate on cash advances, which can quickly lead to debt if used.
- International transaction fees: A 3.5% fee applies to international purchases, which can add up if you frequently shop overseas or online.
- No rewards program: Unlike many cards, this one does not offer any reward points, making it a no-frills option.
- Limited benefits: While the card offers basic features like extended warranty insurance, it lacks perks like travel insurance and other premium benefits.
- Late payment fees: A $20 fee is charged for missing a minimum payment, which could be a drawback if you’re unable to keep up with payments.
How to Activate the CommBank Low Rate Credit Card
To activate your CommBank Low Rate Credit Card after receiving it, you can use either NetBank or the CommBank app. Here’s a simple guide:
- Using the CommBank App:
- Log into the CommBank app.
- Select the card tile.
- Go to “Card settings.”
- Follow the prompts to activate your card and set your PIN.
- Using NetBank:
- Log in to NetBank.
- Go to “Settings” and then “Card activation.”
- Enter the last four digits of your card, confirm your PIN, and follow the steps to complete activation.
Fees and Tariffs
The CommBank Low Rate Credit Card comes with some fees that potential applicants should be aware of. Here’s a summary of the key costs:
- Monthly fee: $6 per month, which totals $72 annually.
- Purchase interest rate: 13.99% p.a. on purchases.
- Cash advance interest rate: 21.99% p.a. if you use the card for cash advances, such as ATM withdrawals.
- Cash advance fee: $4 or 3% of the transaction amount, whichever is greater.
- Interest-free period: Up to 55 days if the balance is paid in full by the due date.
- International transaction fee: 3.5% on any purchases made in foreign currencies or with international merchants.
- Late payment fee: $20 if the minimum payment is not made by the due date.
Customer Service
To get assistance with the CommBank Low Rate Credit Card, here are the official contact channels:
Phone Support:
- For general banking enquiries, you can call 13 2221 (available from 6 am to 10 pm, any day in Australia).
- For specific CommBank Awards program-related queries, contact 13 1661 (Monday to Friday, 8 am to 8 pm Sydney/Melbourne time).
Online Support:
- Visit the official CommBank support page for general assistance.
- You can also get help via the CommBank app by messaging their virtual assistant, Ceba.
Mailing Address: You can write to CommBank at GPO Box 2674, Sydney NSW 2001
Branch Locations: Use the website to find your nearest branch or ATM.
These channels will help you with questions, issues, or applications related to the card.
