Commonwealth Bank Low Rate Card – Details and Application

Information verified correct on September 28th, 2016

Enjoy $0 annual fee for the first year when you apply online by 31 October 2016. Also receive a low rate of 13.49% p.a. on purchases, up to 55 interest-free days and the essential features you need on a credit card.

The Commonwealth Bank Low Rate credit card offers many interesting features and benefits. One of which is the 55 interest-free days on purchases.

In addition, approved cardholders are offered a minimum credit limit of $500 and have to option to use the card for cash advances. Applicants can also take advantage of $0 annual fee for the first year if they apply online by 31 October 2016.

The Commonwealth Bank Gold Low Rate credit card, which features a higher minimum credit limit and included insurances, is an alternative to the Commonwealth Bank Low Rate credit card.

Product NameCommonwealth Bank Low Rate Credit Card
Balance transfer rate (p.a.)5.99% p.a. for 5 months
Balance Transfer Revert Rate
The interest rate after the balance transfer ends.
Cash Advance Rate (21.24% p.a.)
Balance Transfer Limit90% of available credit limit
Purchase rate (p.a.)13.49% p.a.
Offer end date31 October 2016
Annual fee$0 p.a. annual fee for the first year ($59 p.a. thereafter)
Interest Free Period
The interest-free period on purchases is the period or number of days you do not have to pay interest on your card purchases. You will be charged interest either from the day you make a purchase or from the statement date, unless you pay the closing balance in full by the due date (or within the interest-free period) on your statement.
Up to 55 days on purchases
Cash advance rate (p.a.)21.24% p.a.
Min credit limit
This is the lowest credit card limit that you can request. It is possible to apply for a higher credit card limit but not a lower one than this figure.
$500
Minimum Monthly Repayment2% or $25 whichever is greater
Card TypeMasterCard
Late Payment Fee$20
Foreign Currency Conversion Fee (MC)3% of transaction value
Complimentary Travel InsuranceNo
Available To Temporary ResidentsYes - Conditions apply
Joint ApplicationNo
Minimum Age18 years of age
Available to Temporary ResidentsYes - Conditions apply
Credit Rating Requirement
Credit rating requirement is provided only as a guide. Understanding your credit file helps you make more informed decisions in regards to your finances. Learn more about what this means here.
Good
Min Credit Limit
This is the lowest credit card limit that you can request. It is possible to apply for a higher credit card limit but not a lower one than this figure.
$500
Annual Fee$0 p.a. annual fee for the first year ($59 p.a. thereafter)
Minimum Repayment2% or $25 whichever is greater
Late Payment Fee$20
Over Limit Fee$10
Cash Advance Fee$2.50 or 2.00% of the transaction amount (whichever is greater)
Overseas Cash Advance Fee$2.50 or 2.00% of the transaction amount (whichever is greater)
Overseas Emergency Replacement$20
Overseas ATM Balance check$1.25
Foreign Currency Conversion Fee (MC)3% of transaction value
Gambling Transactions AllowedYes
Gambling Transactions Interest RateCash Advance Rate
Additional Cardholder Fee$0 p.a.
Number of Additional Cardholders1
BPAYYes
ChequeYes
Direct DebitYes
Australia PostYes
Phone BankingYes
Internet Banking TransfersYes
In BranchYes
MailYes

Pros

  • Enjoy a promotional balance transfer rate of 5.99% p.a. for 5 months.
  • Pay no annual fee for the first year, $59 thereafter. Eligible for customers who apply online by 31 October 2016.
  • Receive a low interest rate of 13.49% p.a. on purchases.

Cons

  • This is a low rate card that provides no rewards program, complimentary insurance or extra perks.

Commonwealth Bank Low Rate credit card review

This card is designed for customers who wish to keep their overall credit card costs to a minimum. It has a low annual fee and provides 1 additional cardholder at no extra cost. However, it only has a limited number of extra features and does not offer a rewards program or included insurance.

Low Rate cardholders can also get a promotional balance transfer interest rate of 5.99% p.a. for a period of 5 months. After the promotional period, the rate reverts to the cash advance rate of 21.24% p.a. This card also comes with a $0 annual fee for the first year if you apply online by 31 October 2016.

For eligible customers, the Gold Low Rate credit card is another credit card option with similar benefits, and the same competitive interest rate of 13.49% p.a.

Benefits of the Commonwealth Bank Low Rate credit card

  • No annual fee for the first year. Take advantage of the $0 annual fee for the first year offer if you apply online by 31 October 2016. Terms and conditions apply.
  • Fraud protection. The MasterCard® Zero Liability feature ensures that cardholders are protected from fraudulent transactions when using their credit cards online, over the telephone or in-store. This benefit is applicable to personal credit cards that are in good standing, and for cardholders that are in compliance with the terms and conditions outlined in the cardholder agreement on the MasterCard website. As other conditions apply, we always encourage to make sure to read the terms and conditions to understand what you’re covered by. Customers are advised to alert the bank immediately once they become aware of unauthorised transactions on their credit card account.
  • Additional cardholder. Customers can get 1 additional cardholder at no extra cost.
  • Contactless payments. Using Mastercard PayPass technology, customers can simply tap their card to make contactless payment at participating merchants, without needing a PIN for verification. These purchases are fraud protected by MasterCard and limited to $100 or less.

Features of the Commonwealth Bank Low Rate credit card

  • Annual fee. Enjoy $0 annual fee for the first year offer if you apply online by 31 October 2016. After this promotion has ended, an annual fee of $59 will apply.
  • Competitive interest rates. The interest rate on the Commonwealth Bank Low Rate credit card is 13.49% p.a. on purchases, and 21.24% p.a. on cash advances.
  • Interest-free transactions for up to 55 days. Purchases made with this credit card will not incur any interest charges if they are paid in full on or before the statement due date.
  • Instant transaction updating. Your CommBank credit card purchases will show up immediately in NetBank and Telephone Banking under “Pending transactions”. This means you won’t have to wait for the information to appear on the next business day and can stay informed about the financial position of your credit card.
  • Security and spending control. You can instantly put a lock on international payments, block ATM cash advances and limit your spending using the CommBank app or NetBank Internet banking service.
  • Emergency assistance overseas. As a Commonwealth Bank Low Rate credit cardholder, you will be eligible for assistance from MasterCard while travelling abroad on vacation or on business.

Commonwealth Bank Low Rate and Low Rate Gold credit cards: Interview with Lynn Hamblet

Click here for video transcript

Jeremy: Hi, I’m Jeremy Cabral, from finder.com.au, and we’re here to talk to Lynn Hamblet, the Executive Manager of Credit Cards from Commonwealth Bank. Lynn, thank you for joining us.

Lynn: It’s great to be here.

Jeremy: When people are choosing a low rate credit card, why should they choose CommBank?

Lynn: With the lowest interest rate on purchases of any of our credit cards, the low rate card is one of our most popular. We also have a gold card option available, for customers looking for added features, such as the included travel insurance, but at the same time want to keep enjoying the low interest rate on purchases. Our Low Rate Gold customers enjoy included
travel insurance for up to three months. We also offer extended warranty insurance, which means on most purchases you can gain up to an extra year warranty together with the manufacturer’s Australian warranty. And we have purchase security insurance, where we will repair or replace most purchases if lost, stolen, or damaged within 90 days.

Our low rate customers can also enjoy access to our CommBank app, so they can bank anytime, anywhere with their mobile. With CommBank real-time banking, they can also see all of their spend instantly, so they’ll know exactly where they stand at any point in time.

You can also select to receive payment reminders, so you’ll never miss your payment, or set up auto-pay so your payment is automatically paid on the due date.

What’s more, customers can be safe in knowing that they’ll never be liable for unauthorized transactions on their account, provided they follow their credit card’s conditions of use.

Jeremy: Where can customers apply for a CommBank Low Rate credit card?

Lynn: Once you click Apply on Credit Card Finder, you’ll be taken to a secure website where you can complete your application. We offer a 60 second response.

How to apply for the Commonwealth Bank Low Rate credit card

Applying for the Commonwealth Bank Low Rate credit card is simple and only takes a few minutes to complete. To be eligible, applicants must meet the following criteria.

Eligibility criteria

  • Each applicant must be 18 years or over to apply.
  • The additional cardholder should be at least 16 years of age.

For existing Commonwealth bank customers

  • Existing Commonwealth Bank customers have the option of submitting their application through NetBank (the bank’s online banking portal), while new customers can submit their application at any branch of Commonwealth Bank, online via the bank’s website, through the CommBank app or over the phone.

Required documents

  •  Each applicant will be required to provide valid identification such as a passport or driver’s licence.
  • The Bank may request additional documents to support the information supplied on the application.

The Commonwealth Bank Low Rate card is a basic credit card which gives customers a low annual fee and purchase rate. It reduces the maintenance cost of the card and at the same time provides benefits like fraud protection, free additional card and emergency assistance overseas. Make sure you consider these factors and your own spending patterns before applying for a card, so that you can find the right product for you.

Frequently asked questions

I am a self-employed person with annual income around $30,000. What is the minimum income requirement and what income proof is required in my case?

This card does not have a specific minimum income requirement. Applications are handled on a case-by-case basis.

Supporting documents for income include two payslips/ income statements within the last 60 days, your bank statement from another financial institution for the last 3 months showing your regular income, a letter of employment, your most recent tax return, a PAYG payment summary or Notice of Assessment.

I have used this card for cash advance and for purchases also. If I start repaying, which debt will be cleared first?

Cash advance rate on this card is 21.24% p.a. and purchase rate is 13.49% p.a. When repayments are made, the higher interest debt is cleared first and then the next higher interest debt is repaid. In this case, the cash advance debt will be repaid first and any remaining portion of the repayment will go toward the debt from new purchases.

What is the maximum credit limit which can be obtained on this card?

The credit limit is based on an individual applicant’s income and repayment capability. This limit will be specified or offered upon application completion (providing the application is approved).

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123 Responses to Commonwealth Bank Low Rate Card – Details and Application

  1. Default Gravatar
    Ross | June 29, 2016

    Can the $500 of eligible purchases required for the $250 cash back be multiple purchases or just one $500+ purchase?

    • Staff
      Anndy | June 29, 2016

      Hi Ross,

      Thanks for your question.

      To be eligible for the $250 cash back offer, you need to spend $500 on eligible purchases, which could be a single or multiple purchases using your new card before 31 July 2016. For the purpose of earning the cash back, eligible purchases include BPAY transactions and payments to the ATO but excludes balance transfers and cash advances. Please note that other eligibility criteria apply.

      Cheers,
      Anndy

  2. Default Gravatar
    AA | May 27, 2016

    Can you please confirm wat is included in $500 on eligible purchases? Groceries purchased from Supermarkets including local etc Paying Opal and electricity bills?

    • Staff
      Ysa | May 30, 2016

      Hi AA,

      Thanks for your question.

      Eligible purchases apply to any purchases that are not cash advances, balance transfers or gambling.
      Therefore, groceries, electricity bills, BPAY transactions and ATO payments are considered as eligible purchases.

      I hope this answers your question.

      Cheers,
      Ysa

  3. Default Gravatar
    Kimi | April 15, 2016

    Are there any lockout period for cancel the card? Like the ANZ, you cannot close the card in the first 12 months.

    • Staff
      May | April 15, 2016

      Hi Kimi,

      Thanks for inquiring.

      If you decide to close your credit card account, you may do so at any time, provided that no outstanding balance that remains on your card. After you have paid off your balance, you can call or visit any Commonwealth Bank branch and request for a card cancellation.

      Hope this answers your question.

      Cheers,
      May

  4. Default Gravatar
    | April 2, 2016

    Hi. I currently work on a casual basis with several different employers regularly plus receive child support and single parent payments.
    Would I be eligible to apply for this card please?

    • Staff
      Ally | April 4, 2016

      Hi Carla,

      Thanks for your inquiry.

      Kindly note that finder.com.au is an online comparison service that does not represent any credit card issuer such as Commonwealth Bank.

      Although they have not specified a required minimum income level for this card, you might still be requested to provide supporting documents for income which can include your bank statement from a different financial institution (not CommBank) for the last 3 months showing your regular income flow, a certificate of employment, two payslips/ income statements within the last 60 days, your most recent tax return, PAYG payment summary or Notice of Assessment.

      That said, it would be best to contact the Commonwealth Bank team directly through the contact details sent to your email for the best advise on your eligibility and available options.

      I hope this has helped.

      Cheers,
      Ally

  5. Default Gravatar
    Remos | February 16, 2016

    Hi
    To get the $150 cash back offer from Commbank low rate credit card , what are the eligible purchases types ?
    And if I bought for example an appliance which cost over than $500 would this be eligible for the cash back offer ?
    Thanks

    • Staff
      Jonathan | February 16, 2016

      Hi Remos, thanks for your inquiry!

      Eligible transactions exclude balance transfers and cash advances (including transactions treated by the Bank as a cash advance). Since your appliance would be purchasing a good this would be eligible for the cash back offer, providing the merchant accepts credit card payment.

      Cheers,

      Jonathan

  6. Staff
    Sally | December 4, 2015

    Hi Stuart,

    Thanks for your question.

    There is no maximum limit for the Commonwealth Bank Low Rate Card. Instead, the credit limit that you’ll be approved for will be based on the information you provide in your application, your credit history and your ability to repay your credit card.

    You may wish to contact Commonwealth Bank directly to confirm your likelihood of receiving approval for a credit limit of $15,000 before applying.

    You can contact CBA on 13 2221.

    I hope this has helped.

    Cheers,

    Sally

  7. Default Gravatar
    Kim | August 27, 2015

    Is a Direct Deposit classed as a cash advance? (Buying off a private seller)

    • Staff
      Jonathan | August 27, 2015

      Hi Kim, thanks for your inquiry!

      A direct deposit to another individual’s account would be classed as a cash advance.

      Cheers,

      Jonathan

  8. Default Gravatar
    Susan | May 28, 2015

    Hi, I wish to apply for a credit card but I also breed dogs (mini dachshunds) and am paid in cash from buyers so I cant show proof of this. I also receive a pension, what can I do when the question comes up on income etc ? Thank you for your time.

    Susan

    • Staff
      Jonathan | May 28, 2015

      Hi Susan, thanks for your inquiry!

      Supporting documents for income include two payslips/ income statements within the last 60 days, your bank statement from another financial institution for the last 3 months showing your regular income, a letter of employment, your most recent tax return, PAYG payment summary or Notice of Assessment.

      Cheers,

      Jonathan

  9. Default Gravatar
    Lauren | May 26, 2015

    I already have this card. I have a balance of $3400 with $560 of that being a cash advance. Because this is charged at a higher interest rate I want to pay it off asap. If i pay $560 will that automatically pay off the advance cash part first? Or do i have to pay the entire balance to clear the cash advance rate?

    • Staff
      Jonathan | May 27, 2015

      Hi Lauren, thanks for your inquiry!

      That is correct. Repayments are allocated first to the outstanding amount with the highest interest rate first and allocated afterwards to the next highest rate and so forth.

      Cheers,

      Jonathan

  10. Default Gravatar
    Dallas | May 5, 2015

    We applied for a CBA personal loan for $10,000 and tried again for $7,000 but both were rejected, as not meeting the bank’s eligibility criteria. I am on Age Pension and my wife is on Newstart Allowance and our combined annual income is $28,808. The Loans Officer said the CBA does not accept Newstart Allowance as income to service a loan. We have no supplementary income. We own our home outright, valued at $350,000, and hold the deeds, but we are not old enough to get a reverse mortgage (both must be 65). We cannot get a loan because of the strict lending criteria imposed since the global financial crisis. Would a CBA Low Rate Credit Card be the way to go?

    • Staff
      Jonathan | May 6, 2015

      Hi Dallas, thanks for your inquiry!

      CBA has not specified a minimum income level for this card, your overall application will be considered (including income, expenses, liabilities etc). As a result it may be recommended to contact CBA directly either through customer service team or local branch to best discuss your options and eligibility.

      Cheers,

      Jonathan

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Rates last updated September 28th, 2016
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Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
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