CommBank Neo

Pauline Hatch

Pauline is a personal finance expert at CreditCard.com.au, with 8 years in money, budgeting and property reporting under her belt. Ask Pauline a Question about this card.

The CommBank Neo Credit Card Review

Providing you an alternative way to access credit, the CommBank Neo Credit Card charges no interest or late fees, and instead charges a flat monthly fee depending on your credit limit. And, if you don’t happen to use your card through the month – while keeping your balance at zero – you don’t need to pay your monthly fee.

How It Works

As the CommBank Neo Credit Card works in a somewhat different way to most other credit cards out there, we thought we’d spend some time discussing how it works.

With a standard credit card, you typically pay an annual fee for the use of the card, and interest on your balance carried over from month to month. With its Neo card, CommBank decided to play things a bit differently. With this card, there is no annual fee or interest. Instead you pay a flat monthly fee that is based on your credit limit.

• For a credit limit of $1,000, your flat monthly fee is $12
• For a credit limit of $2,000, your flat monthly fee is $18
• For a credit limit of $3,000, your flat monthly fee is $22

And if you don’t use your card through the month? As long as your balance remains at $0, you will not have to pay the monthly fee.

The card also helps you save on other fees too.

Unlike most other credit cards, there are no late fees to worry about on the CommBank Neo Credit Card. There are also no additional cardholder fees if you choose to add another cardholder to your account. And if you use your card to pay in a foreign currency, you won’t have to shell out on foreign exchange fees. This could save you heaps when you travel overseas, or if you have a penchant for online shopping at international retailers.

What’s not so great...

Without the annual fee or interest, the CommBank Neo Credit Card keeps things simple. That means no rewards earning on CommBank’s Awards program, and no fancy extras such as insurance covers and airport lounge access.

This is a card that offers purchases only. That means no balance transfers and no cash advances. While this obviously means no withdrawals at the ATM, bear in mind it also means no gambling transactions or purchases of foreign currency, prepaid cards or lottery tickets.

If you’re a big spender, you may find the card’s relatively low credit limits somewhat limiting. On the other hand, if you’re trying to avoid the temptation to spend and want to keep a close rein on your spending, having a smaller credit limit could be ideal.

Why should you choose this card?

The CommBank Neo Credit Card is designed to make it easier for you to manage your finances, with no annual fee or interest to worry about. Instead of paying annual fees and racking up interest month to month, you could get a firmer grip on your spending with this credit card, paying a flat monthly fee as you pay off your balance each month.

And if you choose not to use your card, you can keep your monthly outgoings to zero. As long as your balance stays at $0, any month you don’t use your card will result in a $0 monthly fee.

Further helping you manage your finances, the card will not let you go over your credit limit. Any transactions you try to make that will exceed your limit will be declined. And while it may act differently to standard credit cards, the Neo still allows you to build your credit score as you use it responsibly.

You may also choose this card for its simplicity. In essence it’s a basic card, which means extras are kept to a minimum. While you can enjoy the same contactless payments and security features as any other credit card, there is nothing to distract you, such as rewards. With that being said, you can still take advantage of the benefits on offer via CommBank Rewards.

Overall Rating

With the CommBank Neo Credit Card you can say goodbye to annual fees and interest, opting instead for this simple card that allows you access to credit, while charging a flat monthly fee depending on your credit limit. While still allowing you to build your credit score and access CommBank Rewards, the card can further help you save with no late fees, additional cardholder fees or foreign currency fees.