I've recently found out about NABs straight up card allowing you to borrow 3000 AUD without interest and just a monthly fee. Are there any other banks that provide these zippay like credit cards?
Other Credit Cards with only a monthly fee
HelpingHand on 04/09/2021 - 23:57
Comments
Firstly, with NAB Straight Up, you pay a monthly fee and monthly repayment. So isn't not like you pay $10 and worry about your balance next month. You have to pay $130 each month for your 3k purchase.
https://www.nab.com.au/personal/credit-cards/nab-straightup-…
Secondly, apart from CommBank Neo, PayPal launched a credit card that give you installment feature too
https://www.paypal.com/au/webapps/mpp/rewardscard-50klauncho…
Caution: feature like what you ask for, is exactly how bank benefits from people with strapped cashflow and don't understand the fine print.
So… it's a high interest rate card. Lets say you opt for $1k limit and spend $1k. You pay a $10 fee for each month you hold a balance, and let's say you pay it off at $100 per month ($90 after fee). By the end you've paid $120 in fees. Because you've reduced the balance each month but are still paying the same monthly fee, this is equivalent of (I would guess) 16-17% on a conventional card where your interest obligation goes down as the balance goes down.
It's much worse if you have the $3000 limit but only spend $1000 because you're paying $20 per month fee and would likely be over 20% interest PA.
If you only spent $280 on a $3000 limit, at the required $110 per month it would take you 4 months to pay off and $80 in fees - or 28.5% for 4 months (85.5% annualised).
If your balance was zero and you bought a McDonalds value meal for $15 one month, it would cost you $35 to pay it off at the end of the month - or around 130% (around 1500% annualised).
I'd think carefully before comitting to this. A standard low rate card would be cheaper in nearly every case.