First Option Bank launches new low rate credit card: how does it stack up?

Theoretically, credit cards are beneficial if you don’t have the funds to pay for something right now, because you can pay them back later. When used responsibly, credit cards can also help you build a credit score.

However, earlier this month RateCity research calculated that, assuming an average credit card interest rate of 17.64% at the time, Australians would have paid $256.7 million in interest charges alone on their $17.73 billion credit card debt. 

That’s $8.6 million per day going into the pockets of credit card providers - money that could otherwise be used to pay for weekly shopping bills, housing costs, and otherwise covering the rising cost of living.

Ultimately, while credit cards can be very useful under the right circumstances, when not used carefully they can become costly and create debt burdens that may be difficult to repay.

Perhaps a card with no annual fee for the first year and a 10.49% purchase rate could help reduce the amount of extra charges that are being paid so frequently? Beyond this, there are a number of benefits available to First Option Bank Low Rate Visa cardholders including:

• $0 annual fee for the first 12 months and a low $48 p.a thereafter
• An ongoing variable purchase rate ranked among the best 20% on RateCity's database
• Compatible with Apple Pay, Google Pay and Samsung Pay
• Fraud protection
• Cards are made in Australia from 82% recycled plastic
• Free supplementary cards
• Use the mobile app to change your PIN or lock your card, 24/7
• Use your card overseas and online

Additionally, every time you spend money using this credit card, you’ll be contributing 0.25% directly to funding biodiversity programs run by First Option Bank’s program partners. There are no extra costs, fees or charges to be part of this program, it comes with the card.

The First Option Bank Low Rate Visa credit card has a minimum credit limit of just $500 and a maximum limit of up to $80,000. Customers receive 45 interest-free days and minimum monthly payments are the greater of 3% or $25.

There are zero fees for late payments but you’ll be charged $15 if you exceed your credit limit in a statement period. The low purchase rate of just 10.49% is highly appealing, while the cash advance fee amounts to 17.99%.

You can apply now for the First Option Bank Low Rate Visa credit card or seek further information and details.

Credit eligibility criteria and other terms and conditions apply. Don’t let your credit card turn from a convenience into a burden on your back. It’s important to use credit cards with caution, and to compare your options in order to help you find the card that best fits your financial situation.