Community First Credit Union launches interest-free credit card
Community First has become the first credit union to launch an interest-free credit card, joining a growing list of banks who are shifting away from traditional fees and extras towards a buy now pay later approach.
Targeting millennials in particular, Community First’s n0w credit card is marketed as an alternative to buy now pay later services by offering a reprieve from late repayment fees and greater flexibility of shopping locations, with the card able to be used anywhere Visa is accepted.
The n0w credit card features a zero-interest rate, no late repayment fees and cash advances. Customers are charged a monthly fee based on their chosen credit limit, which Community First says is below those charged by banking competition.
The current monthly rates see a charge of:
- $9 monthly for a $1,000 credit limit
- $14 monthly for a $2,000 credit limit
- $19 monthly for a $3,000 credit limit
In terms of repayments on purchases, customers are only required to make a 2.5% payment on their closing statement monthly or a $20 payment, whichever is greater.
The Community First Credit Union n0w credit card joins similar offerings in the market, such as Westpac’s Flex Card and the NAB StraightUp Card, but is the first zero-interest credit card to be offered by a credit union.
Community First says the n0w credit card is the only interest free card on the market that offers cash advances, with just a $3 flat rate fee payable. That fee jumps to $5 if you need cash overseas, with an additional 3% currency conversion fee payable.
“We deliver value back to our members through superior service, an extensive range of banking products that include the n0w credit card, lower fees and very competitive interest rates,” said Community First chief executive, John Tancevski.
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