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First Option Low-Rate Credit Card Review
First Option Low-Rate Credit Card Review

First Option Low-Rate Credit Card Review

Updated 21 February 2023

The earth thanks you! 🌍 With First Option’s Low-Rate credit card, you’ll be saving money, the environment and precious endangered species. This funky-looking card made from 82% recycled plastic has a low ongoing interest rate, no annual fee for the first year and only $48 p.a. after that.

At no cost to you, you’ll be helping fund biodiversity programs through First Option’s Environmental Rewards program. This low-cost card could be a good fit for first time credit card users, for emergency funds, or as a simple card for everyday use that also helps change the world. T&Cs apply.

Purchase Rate (p.a)

10.49%

Balance Transfer (p.a)

N/A  

Annual Fee (p.a)

$0 first year. Then $48 p.a.

$0 over 12 months

My transfer amount

Balance transfer from:

My annual fee

My interest rate

Pros and cons

  • $0 annual fee for the first year when you apply for a new card this summer and are approved (then $48 p.a.)
  • 10.49% p.a. on purchases
  • Up to 45 days interest-free on purchases
  • Includes an Environmental Rewards program which lets you help fund biodiversity programs, by contributing 0.25% every time you spend money using your First Option Low-Rate Visa credit card
  • No late payment fees
  • Compatible with Apple Pay, Google Pay and Samsung Pay
  • Terms and conditions can apply, so check our review and the PDS for details

  • No purchase or balance transfer offer
  • No rewards program or points earning
  • 17.99% p.a. on cash advances

Creditcard.com.au review

Editor Review

First Option Low-Rate Credit Card Review

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

Who suits the First Option Low-Rate credit card?

Rainy Day Prepper: You like to know you have access to money if you need it, and don't need to spend much to keep it in your pocket. First Timer: you’re looking for a simple card with a few perks to get you started. Ideally it has a low annual fee and a low interest rate. Money Geek: you want a low-cost card for saving on interest. If it has a twist, like extra perks or a focus on its members, even better.

First Option Low-Rate Credit Card Review

First Option Bank is pretty distinctive. It’s a mutual bank that focuses its sights on preserving our natural resources and protecting endangered species. If you’re a cardholder with a conscience, you might like knowing that you're part of global change every time you use your card.

Before I get into the card review, I’ll introduce you to First Option Bank. It seems important since a lot of the bank’s offering is wrapped up in its values.

One of the reasons you might choose First Option’s card (besides the low interest rate) is its passion for sustainability initiatives. First Option partners with like-minded businesses such as Carbon Landscapes to help protect our habitats, flora and fauna, contributing 0.25% of your purchases to fund different causes.

It’s also a carbon-neutral bank, which means it offsets the emissions of its employees through certified carbon credits and tree planting.

I’ll explain the Environmental Program in the review below, but just know there is no extra cost to you for being part of the program or for First Option’s donations on your behalf.

Editors Review: What I love about the First Option Bank Low-Rate card

Let’s start with the money side of things.

The low interest rate: First Option’s Low-Rate card has one of the lowest ongoing rates in the market. That makes this card a nice option if you know you’re not going to pay off your card in full each month. There is a big financial difference between 10.49%, and the industry standard of 19.94% p.a. interest.

The annual fee discount: You won’t pay an annual fee for the first year, and after that you’ll pay $48 p.a. (which is one of the cheapest annual fees you’ll get). A low interest rate and low annual fee is a nice double-win for keeping your credit costs down.

Other discounts: First Option Bank waives its monthly $5 membership fee if you’re a credit card holder. You’ll still own a share of the bank, which is one share valued at $2.

One thing that stands out about First Option Bank from a non-financial perspective is the way it speaks about its staff and members. It deems itself a family bank with staff who have been there for over 20 years and prioritises its members and their families. Its respect for its community and desire to protect our landscape seems genuine and heartfelt.

When I called First Option with a question about their card, I was connected to the Melbourne head office and had my query answered within minutes. Another tick for accessibility and customer service.

How the Environmental Rewards program works

When you spend on your card, First Option will contribute 0.25% of the amount you've spent to a partnering conservation initiative. For instance, First Option's partnership with Carbon Landscapes has helped preserve more than 800 hectares of private woodland in Victoria to protect endangered species like the Mallee Emu-Wen bird. At the end of the financial year, you'll receive a statement with the contribution amount that's been made on your behalf.

What’s not so great...

This card is simple and no-frills, meaning it doesn’t have too much to be offended by. There are a few fees to be aware of, including:

  • An international transaction fee of 2%
  • A cash advance interest rate of 17.99% p.a.

The simplicity of the card is only a drawback if you’re looking for something with some points-earning pizzazz or free insurances. While you won’t get any of that with the First Option Low Rate card, you’ll instead get a robust little card that doesn’t cost much to keep in your pocket and helps you feel better about your own carbon footprint.

Overall Rating

The First Option Low-Rate card has a lot of good things going for it, and does lots of good for the world. The low interest rate is very competitive, and helpful if you’re going to be paying interest month-to-month. The annual fee waiver is another bonus, and even its ongoing rate is very cheap compared to other low-interest cards.

Of course, for a low rate you don’t get many perks, but you will get to be part of a bigger movement towards sustainability and biodiversity. I think this card ticks a lot of boxes for people who want a simple card with a bit of heart.

User reviews

First Option Low-Rate Credit Card Review ( based on 1 Creditcard.com.au user review )

58% rating based on 1 review

Rates
Fees
Rewards
Customer Service
Value

Rates and fees

Interest rates



Purchase rate 10.49% p.a.

Cash advance rate 17.99% p.a.

Interest free period on purchases up to 45 days

Credit limits

Minimum credit limit $500

Maximum credit limit N/A

Fees & repayments

Annual fee $48 p.a.

Additional cardholder fee N/A

Foreign transaction fee 2%

Minimum repayment

Annual fee the first year $0

Cash advance fee N/A

Late payment fee $0

Additional features

Complimentary insurance

International Travel Insurance No

Flight Inconvenience Insurance No

Transit Accident Insurance No

Smartphone Screen Insurance No

Purchase Protection Insurance No

Extended Warranty Insurance No

Rental Vehicle Excess In Australia Insurance No

Extras

Compatibility with Apple Pay, Google Pay and Samsung Pay

Overview

First Option Low-Rate Credit Card Review

Key features

    $0 annual fee for the first year when you apply for a new card this summer and are approved (then $48 p.a.) 10.49% p.a. on purchases Up to 45 days interest-free on purchases
    Includes an Environmental Rewards program which lets you help fund biodiversity programs, by contributing 0.25% every time you spend money using your First Option Low-Rate Visa credit card No late payment fees Compatible with Apple Pay, Google Pay and Samsung Pay

Minimum criteria to apply for this card

  • Be over 18 years old

  • Good Credit and have not applied for multiple credit cards recently

  • Permanent Resident or Australian Citizen

  • You have your personal details ready to complete the online application

Pauline

Pauline is a personal finance expert at CreditCard.com.au, with 8 years in money, budgeting and property reporting under her belt. Pauline is passionate about seeing Aussies win by making their money – and their credit cards – work smarter, harder and bigger

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