The CommBank Neo credit card is a no interest rate, no frills, and–if paid off in time–no fee card. It’s a simple offering with no hidden charges, and is well suited to Australians looking for a credit card that they plan on using sparingly.
The maximum credit limit of the CommBank Neo credit card is only $3000, which means this credit card could be ideal for individuals wanting to get a credit card for the first time but don’t want to risk their credit score.
Pros
- No interest rate
- No monthly fees if the balance is paid off
- Can be used internationally
Cons
- Maximum credit limit of $3000
- No balance transfers available
- No cash back
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About CommBank Credit Cards
Commonwealth Bank of Australia, known as CommBank, is the largest banking institution in the nation by value of total assets. CommBank offers Australians a wide range of financial services, from fund management, superannuation, insurance and credit cards.
Currently, CommBank has ten different credit card offerings available to its customers, each with various perks, fees and credit limits. These ten credit cards are the:
- Commbank Neocard;
- Low Rate Credit Card;
- Low Rate Gold Credit Card;
- Essentials Credit Card;
- Low Fee Credit Card;
- Low Fee Gold Credit Card;
- Awards Credit Card;
- Platinum Awards Credit Card;
- Diamond Awards Credit Card; and
- Ultimate Awards Credit Card.
The most recent addition to CommBank’s credit card offerings is the Commbank Neocard, its interest-free card. The card was made available in late 2020, with customer reviews of the product not yet listed on Australia’s leading consumer opinion site, ProductReview.
Here’s what you need to know if you’re thinking about taking out a CommBank Neo credit card.
CommBank Neo Interest Rates
The CommBank Neo Credit Card is an interest-free card, meaning there are no monthly interest rates and a 0% purchase rate. This also means there’s no interest-free period to specify, as fees are paid on a monthly basis instead.
Some credit cards have different interest rates for cash advances. However, cash advances are blocked if you are the holder of a CommBank Neo card.
Fees and Limits
Credit cards may seem like a good idea, but if you don’t carefully understand the fees, limits and charges involved, you may end up reaping more costs than you intended.
Thankfully, CommBank’s Neo credit card fees and credit limits are quite straightforward, and are explained in more detail below.
Is there an annual fee?
Rather than listing an annual fee (which is commonplace in the credit card industry), CommBank lists its Neo card fee as a monthly charge. This charge is either $12, $18, or $22–depending on the cardholder’s credit limit.
However, this monthly fee is only charged if the cardholder hasn’t paid their monthly balance in full. Therefore, if you use the CommBank Neo card, and pay it off within the designated period, you won’t see any monthly charges.
The same applies if you don’t use your CommBank Neo card and have any existing balance paid off in full.
What are the credit limits of the CommBank Neo card?
A credit limit refers to the amount of credit a bank will extend to the customer. These are often listed as minimum credit limits and maximum credit limits, as having a lower credit limit is better for the customers’ credit rating (and to avoid going into debt).
CommBank Neo card has a minimum credit limit of $1000, and a maximum credit limit of $3000.
Additional fees
It’s important to understand other additional fees that may come along with a credit card. Oftentimes, these fees are related to late payments, international transactions, or additional cardholders.
With CommBank Neo, these are not hidden charges: there are no late payment fees, no international transaction fees, and there are no fees for additional cardholders.
Are balance transfers offered?
A balance transfer on a credit card refers to moving the amount you owe on one card (being the balance) to another credit card. To do so, you first need to make sure your credit card offers such a feature.
In regards to the CommBank Neo credit card, balance transfers are not available.
CommBank Neo Extras and Offers
These days, credit cards offer more than just credit; there are many other perks and benefits to keep Australians as lenders.
A common entry offer for a credit card is a “cash back” promotion, where you receive a monetary figure back for spending a certain amount in the first few weeks or months of holding your credit card. However, there is no cash back offered for the CommBank Neo card.
Another perk often offered by credit card companies is complimentary insurance, although, due to CommBank Neo’s non-existent fees, this is another credit card perk that is not available.
CommBank does however offer multiple card holders for the Neo at no extra cost, and is able to be used anywhere that accepts MasterCard–including internationally.
Is CommBank Neo a Rewards Card?
No, CommBank Neo is not a rewards card. You cannot earn points or receive additional benefits for using the card.
Who Is The CommBank Neo Credit Card Best Suited For?
Due to the no-frills nature of the CommBank Neo credit card–and the lack of fees for low useage–Forbes Advisor believes the card is best suited to those who are only planning on using a credit card occasionally and aren’t fussed with earning rewards.
Additionally, as the maximum credit limit for the CommBank Neo credit card is only $3000, it could mean the card is best suited to young people wanting to get a credit card without worrying about spiralling into debt.
So if you’re looking for a credit card to use for emergencies, your upcoming travels or to have “just in case” but don’t want to be swamped with high fees and interest, the CommBank Neo may be a great place to start.
Frequently Asked Questions (FAQs):
Where is CommBank Neo accepted?
The CommBank Neo credit card is powered by MasterCard, meaning it is accepted anywhere that accepts MasterCard. This includes overseas, and CommBank Neo holders aren’t charged a transaction fee for international transactions.
Can I get cash out with CommBank Neo?
No, cash advances are blocked with the CommBank Neo credit card.
What are the CommBank Neo monthly fees?
The monthly fee associated with your CommBank Neo credit card depends on your chosen credit limit and whether or not you have paid off your existing balance. If you have an outstanding balance, the following monthly fee will apply:
- $12 per month for $1,000 limit
- $18 per month for a $2,000 limit
- $22 per month for a $3,000 limit
If you have paid off your existing balance for the month, or you haven’t used your CommBank Neo card for that statement period and there is no outstanding balance from a previous period, you won’t be charged anything for the month.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
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