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CBA credit card changes – what to look for if you’re turning to the plastic

CBA credit card changes – what to look for if you’re turning to the plastic

25 Aug, 2023 - 6 min read

Australia’s largest bank, CBA, has today increased the fees and rates on select credit cards.

The bank is increasing the rate on its Low Rate card by 0.75 percentage points to 13.99 per cent, with an annual fee increase of $13 a year.

It has also stopped offering Qantas points on its Awards credit card for new customers, however, this option is available on its Smart Awards and Ultimate cards.

The changes are, in many cases, relatively minor. However, they serve as an important reminder to give your credit card a health check – preferably once a year before the annual fee is due.

While credit cards typically do not rise and fall with the cash rate, the RateCity database shows nine lenders have increased at least one credit card rate in the last six months.

Changes to CBA’s credit card fees and rates, effective 25 August

Card	Change
Low Rate card	Rate: +0.75% pts to 13.99% Fee: increasing from $59 p.a. to $6 p.m. (+$13/yr) Cash advance: +0.75% pts to 21.99%
Low Fee card	Fee: increasing from $29 p.a. (waived if you spend $1K p.a.) to $3 p.m. (waived if you spend $300 p.m.). Increase of +$7 p.a. Cash advance: +0.75% pts to 21.99%
Awards card (CBA or Qantas points)	Fees: increasing from $59 p.a. plus $30 p.a. for those on the Qantas program, to $8 p.m. plus $60 p.a. for the Qantas program. Total increase of up to $67 p.a. Points: The annual cap of up to 50,000 points will be removed, however, the value of points (currently 1 pt per $ for CBA Awards and 0.4 points per $ for Qantas) will halve after the first $2,000 spent each month. Option to earn Qantas points will not be available for new customers. Additional cardholder fee has been dropped.
Ultimate card	Fees: No change to the monthly fee of $35, however, the spend waiver to avoid this fee will increase from $2,500 to $4,000, while the Qantas program fee will increase by $30 to $60 p.a (only applicable to Qantas points customers).

How to test if your credit card is giving you financial heart burn

1) Check the fine print on your current card. This includes the interest rate, fees and perks, if there are any.

2) Download a list of the last year’s transactions and add up the fees and interest charges. Try and estimate any extra surcharges you might have paid as a result using credit.

3) Calculate how many rewards points you have collected in the last 12 months, but also the value of the perks you have redeemed in this time.

4) Are you ahead or in the red as a result of your card? If it’s the latter, it’s probably time to switch. Even if you’re ahead, check to see whether there’s a better option out there.

RateCity.com.au research director, Sally Tindall, said: “CBA might be lifting the points cap on its Awards card, but the fact new customers can no longer earn coveted Qantas frequent flyer points is likely to push some towards a different card.”

“While these changes from CBA aren’t seismic, they serve as a good reminder to do a health check on your credit card to make sure it’s not burning a hole in your back pocket,” she said.

“Look at how much you’re shelling out in fees and interest charges versus how much you’ve redeemed in rewards over the last 12 months. Even if this sum puts you ahead, take an extra 15 minutes to check to see if there are better options out there.

“Finding the right credit card often comes down to what you need the card for, but also how much you spend, where you shop, and in some cases, whether you fly Qantas.

“If your card is putting you in the red, it’s time to come up with a plan B. This could mean switching to a lower cost card, but if you’re up to your eyeballs in credit card debt, you may need to turn your back on the plastic altogether.

“People looking for a low-rate option should know there are a handful of lenders offering credit cards with interest rates below 10 per cent.

“Five lenders also offer ‘0 per cent’ cards which don’t charge interest, even if you have money owing, although most of these options will sting you with fees as soon as you use the card.

“Credit cards can serve a purpose, but if all it’s doing is lining the pockets of your bank, then you need to hit the eject button,” she said.

Lowest rate credit cards on RateCity.com.au database
(excludes 0% interest cards)

Card	Purchase rate	Annual fee	Perks
G&C Mutual Bank Low Rate	7.49%	$50
Easy Street Easy Low Rate	8.99%	$40	0% balance transfers for 6 months
MOVE Bank Low Rate	8.99%	$0 for first 12 months then $59	0% balance transfers for 6 months
Community First Bank Low Rate	8.99%	$40	0% balance transfers for 6 months. Get $100 credit when you make an eligible transaction within 30 days of approval.
Defence Bank Foundation Visa	3.99% for 6 months then 8.99%	$45	Introductory offer on purchases, balance transfers and cash advances

Source: RateCity.com.au. Credit scores apply.

0% credit cards

Card	Interest rate	Fees	Perks
CBA Neo	0%	$12-$22 p.m. No fee if $0 balance, and card not used that month.	No foreign exchange fees.
Westpac Flex	0%	$10 p.m. No fee if $0 balance.	No late payment fees. Fraud protection. Access to Westpac Extras and Rewards.
NAB Straight Up	0%	$10-$20 p.m. No fee if $0 balance, and card not used that month.	No fees on international purchases.
Community First n0w	0%	$9-$19 p.m No fee if $0 balance, and card not used that month.	No late payment fees.
Transport Mutual Credit Union Clement	0%	$0

Source: RateCity.com.au

Rewards credit cards with the highest sign up points

Card	Sign up points	Interest Rate	Fees	Perks
Citi Prestige	275,000 points	21.49%	$700 p.a	Ongoing rewards points, lounge access, Uber cashback, 4^th night free at select hotels.
ANZ Rewards Black	180,000 points	20.24%	$375	Ongoing rewards points $150 cashback, uncapped points on purchases, complimentary insurances.
Qantas Money Titanium	150,000 Qantas points	19.99%	$1,200	Ongoing Qantas rewards points, lounge access, first class invitations, 10% off two sets of flights and travel insurances
BOQ Platinum Visa	150,000 points	20.74%	$129	Ongoing rewards points and insurances.
St.George + Bank of Melbourne + BankSA Amplify Signature	150,000 points	19.49%	$199 for the first 12 months then $295	Ongoing rewards points, lounge access and insurances.

Source: RateCity.com.au

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Product database updated 22 Nov, 2024

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

Eden Radford

External Comms Lead

Eden Radford is the External Comms Lead for RateCity, bringing almost a decade of experience across the finance services and technology sectors. In prior years, Eden has worked with Lendi, Aussie, Xero, Qualcomm, Accenture, and Dyson, among others, while being a pillar of expertise for government clients and contracts, as well. Eden has a passion for improving financial literacy, data storytelling and helping people better understand the decisions they can make about their own finances.