Borrow
CBA launches new no-interest credit card
As younger Australians continue to choose buy now, pay later services over debt-accruing products, Australia’s largest bank has launched a no-interest credit card.
CBA launches new no-interest credit card
As younger Australians continue to choose buy now, pay later services over debt-accruing products, Australia’s largest bank has launched a no-interest credit card.
For a monthly fee ranging between $12 and $22, CBA’s new Commbank Neo card will have credit limits of $1,000, $2,000 and $3,000 with no interest and no late or currency conversion fees.
This follows the announcement from National Australia Bank (NAB) who launched the “first” no-interest credit card in Australia on Thursday, 10 September.
CBA’s group executive of retail banking, Angus Sullivan, said the card offers consumers certainty and control over their spending.
“We are really excited to launch our simple, easy to understand product, which we believe offers great value to our customers,” Mr Sullivan said.
Rate City’s research director, Sally Tindall, said these new cards signal that it’s game on between the big banks and buy now, pay later services.
“Hopefully, this competition will bring more low-cost, consumer-focused credit options to the table,” she said.
While CBA’s card is eerily similar to NAB’s, aside from the small variation in monthly fees, there are two key differences.
“The main difference between the two cards is NAB is asking customers to pay back more of their debt each month, which will see them clear it faster,” she said.
“The second difference is CBA offers shopping perks, but only if customers spend at certain stores.
“Customers should be wary: if they start buying things in a bid to claw back their monthly fee, then they’ve probably had.”
Ms Tindall expects the other major banks to also take on the buy now, pay later sector.
“At this rate, Westpac and ANZ will have interest-free cards on offer before the weekend’s out,” she concluded.
About the author
About the author
Credit card
Top strategies for improving your credit score in 6 months
Maintaining a healthy credit score is essential for financial wellbeing, especially in Australia where credit scores significantly influence loan and credit card approvals. Read more
Credit card
Block announces first integration with Afterpay
Block’s acquisition of Australia’s buy now, pay later platform has been completed. Read more
Credit card
Afterpay v Zip: Which is better value?
The two biggest brands in BNPL may have more in common than you think. Read more
Credit card
BNPL to boom amid seasonal spending
There’s never been a better time to buy now, pay later than the holiday season. Read more
Credit card
Experts say BNPL data underutilised by credit sector
BNPL took off among Australian consumers so fast that credit bureaus are still trying to catch up. Read more
Credit card
Calls for online gambling ban intensify
A parliamentary committee has backed calls for a new ban on credit card gambling. Read more
Credit card
Afterpay looks to find foothold in subscriptions
Afterpay will let customers break their monthly bills into instalments from early next year. Read more
Credit card
Credit cards slip 4%, but BNPL isn’t the culprit
Traditional credit cards have continued to decline in popularity over the course of the pandemic. Read more
Credit card
Top strategies for improving your credit score in 6 months
Maintaining a healthy credit score is essential for financial wellbeing, especially in Australia where credit scores significantly influence loan and credit card approvals. Read more
Credit card
Block announces first integration with Afterpay
Block’s acquisition of Australia’s buy now, pay later platform has been completed. Read more
Credit card
Afterpay v Zip: Which is better value?
The two biggest brands in BNPL may have more in common than you think. Read more
Credit card
BNPL to boom amid seasonal spending
There’s never been a better time to buy now, pay later than the holiday season. Read more
Credit card
Experts say BNPL data underutilised by credit sector
BNPL took off among Australian consumers so fast that credit bureaus are still trying to catch up. Read more
Credit card
Calls for online gambling ban intensify
A parliamentary committee has backed calls for a new ban on credit card gambling. Read more
Credit card
Afterpay looks to find foothold in subscriptions
Afterpay will let customers break their monthly bills into instalments from early next year. Read more
Credit card
Credit cards slip 4%, but BNPL isn’t the culprit
Traditional credit cards have continued to decline in popularity over the course of the pandemic. Read more