CommBank Neo card
A no interest, flat fee credit card with CommBank Rewards perks.
Coming in late 2020, the CommBank Neo card is a flexible alternative to buy now, pay later services and traditional credit cards. You'll be able to make purchases and pay them off over time - without paying any interest. Instead, when you use the card or carry a balance, you'll be charged a monthly fee of $10, $12 or $18 depending on your selected credit limit.
|Product Name||Commonwealth Bank Neo Card|
|Min credit limit||$1,000|
|Max credit limit||$3,000|
|Foreign currency conversion fee||0%|
|Available to temporary residents||Yes|
- Charges a monthly fee based on your selected credit limit
- The monthly fee is refunded if you don't carry a balance or make purchases
- Zero interest charges, 0% foreign currency conversion fees and no late payment fees
- Access to cashback offers through the CommBank Rewards program
- Maximum available credit limit of $3,000 is low compared to standard credit cards
- Unable to make cash advances
- Not connected to the CommBank Awards program and does not offer any insurance cover
|Minimum monthly repayment||2% of the closing balance or $25, whichever is greater|
|Late payment fee||$0|
|Foreign currency conversion fee||0%|
|Additional cardholder fee||$0|
Alanna Glenn is the publisher for credit cards and credit scores at Finder. She has an Honours Bachelor of Commerce from McMaster University in Ontario, Canada and likes to get into the nitty gritty of all things financial and legal. Outside of the office, you can find her doing yoga and petting other people's dogs.
The CommBank Neo card strays from other credit cards on the market because it doesn't charge interest. You can still pay off purchases over time (like regular regular cards), as long as you make the minimum repayments ($25 or 2% of your closing balance, whichever is greater). This structure makes the CommBank Neo more comparable to buy now pay later services.
In terms of costs, the monthly fee you’ll pay is $12 for a $1,000 credit limit, $18 for a $2,000 credit limit and $22 for a $3,000 limit. The monthly fee is only charged when you use the account. So if you don’t carry a balance and don’t use the card for an entire statement period, CommBank will reverse the monthly fee for that period.
While the CommBank Neo is a no-frills product, offering nothing in the way of insurance covers or balance transfers, it does come with the CommBank Rewards program. This offers cashback perks at over 80 retailers in Australia through the CommBank App.
How to apply
You can't apply for the CommBank Neo card just yet. But you can register your interest on the Commonwealth Bank website. While no specific eligibility criteria for the Neo has been defined, for most CommBank cards you'll need to meet the following criteria and have your documents handy.
- Residency. Cards are typically available to permanent and temporary Australian residents as long as you're legally allowed to work in Australia.
- Credit history. You must have a good credit score with no current bankruptcies. You can get your credit score and copy of your comprehensive credit report for free through Finder.
- Age. You must be at least 18 years of age to apply for a credit card in Australia. However, to participate in CommBank Rewards, you must be at least 21.
Documents and details
- Personal information. This includes your full name, date of birth, contact information, residential address, marital status and number of financial dependents.
- Proof of identification. You'll need to verify your identity with your drivers licence, passport, Medicare card or another form of identification.
- Income and employment. Confirm your current employment and annual income. You may need to provide recent payslips to prove your income.
- Finances. This includes any assets, such as savings and investments as well as any liabilities like existing debts or loans.
- No interest charges. This card charges an ongoing rate of 0% interest. No interest doesn't mean no payments and you are still required to pay at least the minimum amount listed on each statement by the payment due date. This card works like a standard credit card and you can use it anywhere Mastercard is accepted, however, you can't use it for balance transfers or cash advances.
- Don't use, don't pay. If you don't use the card at all for an entire statement period and have a $0 balance at the end of the period, the monthly fee will be refunded back to your account for that statement period.
Rates and fees
- Monthly fee. A $12 monthly fee applies for a $1,000 limit, a $18 monthly fee applies for a $2,000 limit and a $22 monthly fee applies for a $3,000 limit. This fee is charged each month when you use the card or carry forward a balance from previous months.
- Minimum payments. The minimum amount you have to pay off each statement period is $25 or 2% of the closing balance, whichever is greater.
- Foreign currency fees. The CommBank Neo card does charges 0% fees for transactions made overseas or online in a foreign currency.