No-interest credit playing cards launched, however are they actually cheaper?

The brand new choices

The NAB and CBA no-interest playing cards are comparable.

NAB’s StraightUp Visa card and CBA’s Neo MasterCard each have a set month-to-month charge in case you carry over a stability that month. This, and the minimal repayments, fluctuate in response to your restrict, which is a most of $3000.

If there isn’t any excellent stability and the cardboard is just not utilized in a given month, the month-to-month charge is reversed.

The CBA Neo month-to-month charges are greater: on the $1000, $2000 or $3000 out there limits, they’re $12, $18 and $22, respectively. The NAB StraightUp card’s $1000, $2000 or $3000 restrict charges are $10, $15 and $20 month-to-month.

One other distinction within the NAB providing is that the minimal repayments are set so if a buyer is maxed out on $3000, they must repay it inside three years. This redresses a regulatory loophole the place a lender should not concern credit score borrower can not repay inside that interval.

So, how do the prices stack up with different bank cards?

$1000 buy paid off over six months

Information home Finder solely crunched the numbers for Cash.

With an everyday bank card (together with the $153 annual charge for rewards playing cards), you’ll pay $1211.96 in complete on your buy.

With the common low-rate card (a 12.93 per cent annual charge plus $47 annual charge), the spend would find yourself at $1085.05.

Nevertheless, with the brand new CBA Neo card, you’ll land at a less expensive nonetheless $1072 and NAB’s StraightUp card is the most affordable of all at $1060.

$3000 buy paid off over 12 months

There’s virtually no distinction between the common low-rate card and CBA’s no-interest Neo.

The typical low-rate card will see you half with a complete of $3261.24; the Neo card, $3264.

The usual, high-interest bank card will set you again $3486.81.


Coming in most cost-effective – once more – is NAB’s StraightUp card: $3240.

What about BNPL?

The brand new bank cards are topic to accountable lending legal guidelines, not like BNPL merchandise, the place there are restricted credit score checks and the power to join a number of companies can get you in debt over your head.

BNPL companies usually make their cash from late charges when this occurs.

The opposite huge distinction is that, not like with BNPL, with the brand new choices you do not have to repay the identical quantity every time – and you do not have a set deadline when that you must pay all of it off (apart from the three-years-to-clear reimbursement stage NAB units).

The ethical of the story? You might be most probably to come back out forward in case you purchase and repay your card stability rapidly. Maybe it ought to come all the way down to which cost system makes you spend much less.

Nicole Pedersen-McKinnon is the creator of How to Get Mortgage-Free Like Me. Comply with Nicole on Facebook, Twitter or Instagram.

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