A major bank has launched Australia’s first no interest credit card, introducing a “completely new approach to credit”.
NAB’s StraightUp Card allows customers to access credit of up to $3,000 with no interest and no annual, late payment or foreign currency fees. While customers are required to pay a flat monthly charge, they won’t need to pay it if the card is not used.
“Credit cards have not really evolved in recent years. But our customers’ needs and expectations are changing and we want to change with them,” said NAB group executive of personal banking Rachel Slade.
“We started with a straightforward idea – to create a card with no interest, no annual fees and no late payment fees.
“This is the result – a simple, easy to understand credit card that can be used anywhere Visa is accepted online or in store.”
According to Slade, the StraightUp Card was developed through extensive customer research which revealed young Australians are more conscious about their spending and savings behaviour.
“In the NAB StraightUp Card, we’ve created something completely different to every other credit card available today, with a simpler approach that makes it easy for customers to take control of their finances,” said Slade.
Through having a lower credit limit than most other credit cards and a higher minimum repayment, the new product was built to help customers take greater control of their debt. Additionally, the card does not allow for cash advances or gambling transactions.
“The NAB StraightUp Card’s range of features means it is the simplest credit card offering in the market. And with many safeguards in place it can really help customers take control of their spending,” Slade said.
Within 24 hours of NAB unveiling its StraightUp Card, CBA announced a no interest credit card of its own.
The CommBank Neo Card will be made available to customers in late 2020 and will provide credit limits of $1,000, $2,000 and $3,000 with no interest and no late or currency conversion fees – near identical terms and conditions to NAB’s offering.