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Our verdict

Offers a 10.49% p.a. interest rate on purchases, sustainability benefits and a $0 annual fee in the first year, which goes to $48 after that.

The First Option Low-Rate Visa stands out as a credit card that is actively addressing climate change. Unlike most cards in Australia, this one is made from 82% recycled plastic. And while some rewards cards let you use points for donations to good causes, this card's Environmental Rewards gives you a way to support sustainable projects automatically. First Option has partnered with Carbon Landscapes, the Odonata Foundation and trace – with the 0.25% that's donated based on your spending going directly to environmental programs they manage.

This card's 10.49% p.a. interest rate for purchases is also very low compared to the average standard credit card interest rate in Australia (currently 20.16% according to RBA data). But it does charge a higher 17.99% p.a. for any cash advance transactions. And unlike some other cards, it doesn’t currently offer any promotional interest rates. So it is more suited to people looking for an ongoing low rate rather than short-term relief.

Pros

$0 first-year annual fee ($48 p.a. thereafter)
10.49% p.a. interest rate on purchases
Environmental Rewards program donates a portion of spending to sustainable causes
Made from 82% recycled plastic
Carbon neutral bank

Cons

A higher 17.99% p.a. interest rate on cash advances
No introductory purchase rate or balance transfer rate offer
Does not earn points per $1

The First Option Low-Rate Visa is suited to people who want a low-cost card that also helps support the environment. First Option is a carbon neutral bank, and 0.25% of the value of your spending is automatically donated to sustainable initiatives through the Environment Rewards program. It offers a $0 annual fee in the first year, which then goes to $48 after that. Both the annual fee and 10.49% p.a. purchase rate are competitive among low rate credit cards. Just keep in mind that unlike a rewards card, you won’t directly earn points or cashback as you spend.

Details

Product details

Product Name	First Option Low-Rate Visa Credit Card
Purchase rate p.a.	10.49%
Interest-free period	Up to 45 days on purchases
Cash advance rate p.a.	17.99%
Min credit limit	$500
Max credit limit	$25,000
Card type	Visa

Eligibility

Available to temporary residents	No
Joint application	No

Rewards

Bonus points

N/A

Fees

Annual fee	$0 first year ($48 after)
Minimum monthly repayment	3% of the closing balance or $25, whichever is greater
Late payment fee	$0
Foreign currency conversion fee	2%
Overseas cash advance fee	$175
Overseas ATM withdrawal fee	$0
Additional cardholder fee	$0

How to apply

You can easily apply for the First Option Low-Rate Visa online by completing an enquiry form on the bank's website. Here, you can check if you meet the eligibility criteria and get all the required documents and details ready to go.

Eligibility criteria

Residency. You should be an Australian citizen or resident.
Credit history. You should have good credit history.

Age. You need to be at least 18 years of age.

Required documents

Personal details. This includes your full name, date of birth, residential address, driver's licence number and contact details.
Employment. This includes your employment status and occupation, the name of your employer and your employer's address. You also need to confirm your after-tax income.
Finances. This includes the value of your assets, such as property, investments, savings and shares. You also need to estimate your living expenses and provide details of any debts or liabilities, such as other credit cards or loans.

Card benefits

$0 annual fee in the first year. This card currently waives the annual fee in the first year, which saves you $48 on the annual fee that applies from the second year on.
Environmental Rewards program. When you pay with the First Option Low-Rate Visa, an equivalent of 0.25% of your spending is donated to sustainable projects with First Option's environmental partners. For example, First Option has supported Carbon Landscapes in a project to help protect the endangered Mallee Emu-Wren.

Low interest rate. This card has a 10.49% p.a. interest rate for new purchases. In comparison, other cards in this category have purchases rates ranging from 7.49% p.a. to 15% p.a.
Recycled plastic card. The First Option Low-Rate Visa is made of 82% recycled plastic.
Carbon neutral bank. First Option has partnered with Australian business trace to become a carbon neutral organisation. Check out Finder's Going Green interview with trace co-founder Jo Auburn for insights on how it works.
Visa card features. This card offers worldwide acceptance through the Visa network, as well as exclusive discounts and deals through Visa Offers and Perks.
Mobile wallets. You can add your card to Apple Pay, Google Pay or Samsung Pay to make payments straight from your phone (or another compatible device).

Rates & fees

Annual fee. Outside of any promotions, this card has a $48 annual fee, which is on par with other low rate cards.
Interest-free days. This card offers up to 45 days interest-free on purchases. Any unpaid balance after the due date on your statement will be charged interest from either the beginning of the month or the date of the purchase (whichever is later).

Cash advances. A 17.99% p.a. interest rate applies to cash advance transactions, such as ATM withdrawals.
Additional cardholder. You can request additional cardholders at no extra charge.
International transaction fee. A 2% fee applies for international transactions.

Sources

First Option Bank Low-rate Visa Credit Card information PDF

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Amy Finder

Editor

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Johan

September 18, 2023

Would I qualify if I am self employed?

Amy Bradney-George Finder

September 22, 2023

Hi Johan,

You can select “Self-Employed” as your employment type when you submit an enquiry through the First Option website. You also need to include your total net monthly income (after tax). If you have further questions about eligibility or the application process, you can contact First Option on 1300 855 675. I hope this helps.

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First Option Low-Rate Credit Card

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