ING new no annual fee Orange One credit card
Existing customers can apply for ING's first credit card.
Earlier this year, we reported that ING Direct had confirmed plans to launch its first credit card on the Australian market. The provider initially released the card to a small group of existing customers in November 2016. However, all ING Direct customers can now apply for the card as long as they've deposited at least $1,000 a month into any personal ING account in their name in the last three months.
While the card isn’t available on the wider market just yet, Aussies can begin to compare rates and fees.
The Orange One credit card is a no frills product that can help cardholders avoid most standard costs. The card comes with $0 annual fee and a low ongoing interest rate of 14.99% on both purchases and cash advances. Plus, cardholders receive 45 interest-free days on purchases if paying balances in full.
If you have big purchases in mind, you can also take advantage of the instalment plans with a lower interest rate of 9.99% p.a. Similar to how personal loans work, this means you can pay off a purchase (or group of purchases) with equal monthly instalments over a set term with a lower rate.
While this card is a low rate and basic product, it does come with some extra features. If you’re approved for a credit limit of $6,000 or more, you can enjoy complimentary travel insurance and up to 1% cashback on your spend up to $30 per month. To take advantage of the cashback, though, you must opt to pay for a rewards annual fee of $199 on activation.
As this card offers a no annual fee alternative, you’d need to make sure that the potential cashback reward outweighs this cost. For example, with the cashback threshold in mind, you would need to spend $3,000 per month to collect the maximum cashback of $161 once you've subtracted the value of the $199 annual fee. If you're not going to spend this much each month, it might be worth sticking with the no annual fee option.
As we reported earlier this month, the ING Direct Orange One credit card also has a minimum repayment of 10% or $100 (whichever is higher). This is much higher than the standard minimum repayments of 2% or 3%. While this may appear as a downfall, ING hopes it will help cardholders repay their balances faster to keep their debt in control.
For a more comprehensive overview of the ING Direct credit card, please check out our review for all of the rates and fees. You can compare the Orange One card with other no annual fee credit card options.
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