Commonwealth Bank Low Rate Mastercard Offer - $200 Cashback after Spend $500 by 31 October 2019 ($59 Annual Fee)

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Copy and paste from CBA website:

$200 cashback offer. Apply by 31 July and spend $500 by 31 October 2019.*

  • Offer applies to new personal Low Rate, Low Rate Gold, Low Rate Business Credit Cards (personal liability) applied for between 01/05/2019 to 31/07/2019 only. Offer not applicable to CommBank Essentials credit card.

To be eligible for the $200 cashback, you need to spend $500 on eligible purchases using your new card by 31/10/2019.

Offer excludes all existing cards, switches from other card types and is not available to customers who currently hold, or have held, any Low Rate card types in the 12 months prior. Offer only available on one credit card per customer, can be withdrawn at any time. Cashback will be credited within 60 days of you meeting the spend criteria and will appear on your statement as 'CASHBACK $200'.

You will be ineligible for the cash back if your account is closed, switched to another card, or in default at any time prior to the cash back being credited to your account. Applications are subject to credit approval. Full Conditions of Use will be included in our Letter of Offer. Fees and charges are payable.

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Comments

  • +2 votes

    The gold variation
    https://www.commbank.com.au/credit-cards/low-rate-gold.html?...
    costs a bit more ($89), but provides free international travel insurance, which some may find as good value.
    Also has the $200 cashback.

    •  

      Take a look at the horror stories about people trusting their credit card included travel insurance… probably worth just taking out proper insurance to make sure you're eligible and able to contact insurance when you go away.

      • +7 votes

        Or just read what you are and aren't covered for, and by how much…
        I used mine and got over 4k back when a holiday got cut short.

      • +7 votes

        As long as you've read the requirements then I don't see a problem with it. Your credit card insurance is underwritten by the same underwriters as the major retails travel insurers.

        I damaged a rental car last year on a domestic travel trip, I was able to claim the costs against the ANZ Black card travel insurance.

      •  

        Worked for me! Got my phone replaced without much hassle through CBA credit card free travel insurance after my phone got stolen.

    •  

      Also has extended warranty and purchase damage insurance in first 90 days, which to me is more useful than travel insurance.

  • +15 votes

    Technically $141 profit… Probably not worth taking a credit check hit.

    • +5 votes

      New to credit cards here. If you're someone who pays off credit card usage appropriately and doesn't pay any interest then is there anything negative about applying for different cards for rewards?

      • -2 votes

        If you are looking for a home loan, it will severely lower your borrowing limits. That's all I can think of now and of course applying for other credit cards.

      • -2 votes

        Credit card applications impact on your credit score for 24 months (though I think the impact does decay over the period).

        As such, applying for lots of credit cards for a benefit of $150 may mean you will be rejected when you apply for cards that are netting you $700 or so.

        I agree with clse, it's not worth the hit.

        • +1 vote

          And which credit cards have $700 profit? I've never seen one - can you please share…

          •  

            @Basic1: I suspect raven didn't mean $700 of cash profit, but rather $700 of value as there are many frequent flyer cards that offer big signup bonuses. And depending on how you redeem these points, you can easily derive at least $700 of value.

      •  

        I've only ever had an issue with Commonwealth. Its the lending potential and card application number that is the issue from my experience.

    • +3 votes

      New credit check system means that when you close the account the effect it had on your rating is undone.
      I've gone through about a dozen CC's over the last 3 years and my rating hasn't changed in the long-term. Still sitting much higher than the average.

      • -9 votes

        "New credit check system means that when you close the account the effect it had on your rating is undone."

        no, not true

        •  

          You Sir, are wrong.
          "Previously, your credit report may have included information like when you applied for credit products and any defaults you’ve had.
          With CCR your credit report includes additional information like the dates you opened and closed your personal credit account, account type, credit limits you have and up to 24 months of repayment history."
          https://www.commbank.com.au/support/credit-reporting.html

          •  

            @Viper8: yes, i'm well aware that comprehensive reporting exists.

            you can't just say it's 'undone'. you simply have absolutely no idea what the positive/negative impact of the original credit check is, and what the positive/negative impact of the account being closed is.

            • +1 vote

              @dirkgonnadirk: I have a chart with 12 such example showing exactly these effects. I apply and my rating drops a little, I close it and my rating goes back up a little. In the long-term it doesn't change notably despite ploughing through cards.
              I did simplify it a lot, but in essence there is no meaningful negative implications that I have ever experienced nor heard of since the new reporting. And this is what the OP comment posted about.

              •  

                @Viper8: What service do you use to check your rating?

                  •  

                    @Viper8: Ok thanks, I use that too.

                  •  

                    @Viper8: There's the issue - CreditSavvy (Experion). Go sign up for CreditSimple (uses Illion) - look at your rating there. The number of card applications does have an impact (https://www.homeloanexperts.com.au/credit-score-home-loan/cr..., https://www.creditsavvy.com.au/learn/credit-faqs/what-are-cr...) but the agency themselves decides how big that impact is and how long it lasts wrt their score.

                    Illion (was D&B) is used far and wide - my rating is Fair. My CreditSavvy score (rarely used in AU) is Very Good. Good income, no adverse events, etc. My understanding is once you are at Fair or higher this will hurt you for small loans (you get 15% offers instead of 8%) but not as a big a deal for a home loan (once you are "fair" or better, once you pass the income/expenses checks there's a small difference in interest rates - you might miss out on one 3.6% offer but you'll get 3.8%)

                    tl;dr lots of enquiries = negative impact in short term. Short term could be 6-24 months.

                    • -1 vote

                      @enigma48: That was in the old world. Today they also record when you close the account. So it doesn't have anywhere near as large of an impact.
                      I just got accepted for the 15k Citi CC that 90% of people are being rejected by despite all of my applications in recent years.

                      •  

                        @Viper8: It's the current world - look at the links. Go get a ratesetter quote, they'll look at your live score. You'll be given a quote for a loan with best-case scenario. If you have a lot of enquiries, they'll add a higher risk charge and give you a higher interest rate.

                        You're right in that all of this has limited impact on credit card applications though. If you're under the limit (3 enquiries in the past few months I think?), satisfy the income/expense check, pass the other rules (some companies are rejecting for unknown reasons) and don't have bad stuff on your report, you should be fine. But a bad rating will impact housing/loans and takes longer than a few months to reset. I'd suggest checking your CreditSimple score if you have any loan/mortgage plans.

      • +1 vote

        good to know.
        maybe a dumb question but how do you check your credit rating?

        • +1 vote

          You get one free check by law with providers each year, but there has been deals on OB for free credit check accounts which publish monthly score updates.
          Search OB or contact your bank.

        • +4 votes

          you can register with GetCreditScore or Credit Savvy. They will give you update of credit score every month.

      •  

        Your credit score and future lending will be affected by the number of applied for credit cards, which stay on your file for 5 years…

      • +1 vote

        I went through 6 cards in 12 months and dropped 250 points. Never missed a payment and closed them all. 6 months later the score hasn't gone back up…

        •  

          Pretty sure thats way too many, an estimate i heard was 2-3 a year and credit score should remain even but if anything go up.

    • -2 votes

      Isn’t it $241 profit?

    • -3 votes

      Came here to say this. Don't go applying for credit cards for a small profit like this deal, your score is much more important and it will stay on your record for 5 years. Only apply for a credit card if you actually have a long-term need for it and no immediate plans to get a home loan / personal loan.

  • +1 vote

    Got it less than a year so I won't be eligible for now but yeah next time around I will be reapplying for sure. Easy $141 money.

  •  

    I've just cancelled my WestPac credit card with the same offer.
    Will constantly applying for CCs affect your credit history?
    I cant see why it should but perhaps someone can enlighten me.

    •  

      doing the same. I dont think it affects ur CC history. how did u cancel westpac one? I need to do mine. how long does it take?

    •  

      No. New reporting means that when you close them this info is taken into account.

    •  

      If they see that you're constantly getting pinged by banks they'd think that you're
      A credit card hopper, which some banks would reject.

      Or, a credit card abuser.

      Even if those cases may be untrue you can't change what banks think so reducing the risk is probably the way to go.

      • -1 vote

        I have about 12 applications to my name in about 3 years. Yet to be knocked back…

        • +2 votes

          20 in 21 months. Yet to be knocked back.

          •  

            @endolphin: I assume you mean credit cards. But were you knocked back for a home loan? Were you offered a crap car loan rate?

            Credit card companies won't care. When you go for a house or a car, then it'll hurt if you've got 6 recent enquiries. (not buying a home or car? not a problem.)

            •  

              @enigma48: I have a home loan, and I was recently preapproved for another. My credit scores (experian and equifax) are both higher now than before I went on my great big churn run.

        • +1 vote

          I take advantage of these deals whenever I possibly can… got approved for a home loan no questions asked.
          My bank was only concerned with current credit limits across all cards.

          I have notifications turned on for when my credit file is accessed, and for half of the credit cards / phone plans I've signed up for, I've not received notifications for.

          EDIT: ok I just logged in and yeah there's a few accesses there! haha… not that I'm worried. Not planning on buying another house for 3 years.

  •  

    Applications are subject to credit approval.

    What if I never had a credit card (although I am with CommBank)?

    • +3 votes

      If your pay goes into commbank they'll have an idea already based on accounts in/out. But will probably check your income vs debts (part of application) and maybe do credit checks to.

      •  

        Yeah my income is very patchy (contract/casual) and despite being financially stable, couldn't get approved except by Bankwest (my former bank) who offered me a better credit limit than I wanted. I presume they must have looked into my accounts.

      •  

        Apart from HECS, I have no other debts. I wonder how they do other credit checks if I never took a credit card.

        •  

          Think paying (and not-paying) any bills eg utilities & rent counts towards credit rating also. I assume an automated credit check is only done for the accepted in 60sec bit most banks advertise. As full approval comes couple days later once they check the rest of your application.

          Good income with no debts (hecs won't count) should be easy approval, as they checking you can make repayments.

  •  

    Do this card have the FREE Travel insurance?

  •  

    Anyone know if you can ask to have the annual fee waived? I did that with the Westpac equivalent offer.

    •  

      For the first year, it is waived in some sense, as you're being paid to get it.
      You do have to spend a bit for that to happen, but..
      After that, it depends on how much CBA wants to keep you using the card. I had success in the past waiving higher fee cards with them. But the last time I tried, a couple of years back, they wouldn't waive the annual fee. YMMV.

    •  

      If you spend a lot, I think they will. From memory, $2000 spend over a year was enough to void the annual fee for a low fee card, $10000 was enough to cover the Gold, so I imagine $5000ish would waive the fee here.

      Otherwise - it's Commonwealth bank, I doubt they'll do it out of the goodness of their hearts.

  •  

    What's considered a good credit score? Just checked mine, it's 663, is it good?

    •  

      About median according to the chart..

    •  

      Don't worry about the score, it's just a number they make up. I've got a completely different score on creditsimple to the score on creditsavvy.

      •  

        The number is used heavily for small loans - I could get 7% interest offers with a good score, or 14% offers (same company) if I had a 'fair' score. You'll miss out on some of the best home loan rates too with a 'fair' rating.

  •  

    looking to apply for my first credit card, is this considered a good offer and a low annual fee? I'm in the early stages of researching credit card options, so any advice besides the usual warnings about how "bad" credit cards are are appreciated. I'm with commbank for my savings acc

    •  

      Credit cards are great, I effing love them, but this is one of the worst sign up deals around. Net profit $141 is poor. The lowest return I have gotten from a cc is net $380, which was scraping the bottom of the barrel when all other options had been exhausted.

    • +1 vote

      If you want a credit card to keep rather than churn consider 28 Degrees, Bank West Zero Platonim (both Zero annual fee and zero international transaction fees, great for travelling and foreign currency purchases online).

      Also get an AmEx. The statement credit deals aren’t as good as they used to be but there maybe something there for you. I’ve got the Qantas Discovery as it earns FF points but has no annual fee. OzBargain’s referral link

    •  

      If you're going to pay your credit card off in full every statement then low interest has no benefit. CBA has a low fee card that if you spend over $1k/year on the standard or $10k on the Gold or the annual fee is waived. I've had one of these since I turned 18 (9 years) and have never paid interest or an annual fee.

      Award cards are only worth it if you spend at least enough each year to offset the annual fee. I used to work in credit cards for CBA and this was rarely the case for most people. The annual fee for a standard award card at CBA is $59. This works out to be ~$13,452 in spending in a year. For the Gold with and annual fee of $249, it works out to be ~$52,500 a year.

      I don't know how they compare to other banks but I think awards cards are rarely worth it.

      •  

        But then to get the annual fee waived do you have to contact the bank or will they automatically waive the fee? Highly unlikely the bank would just waive it without any contact from you.

        • +1 vote

          It's automatically waived if you spend over the required amount every year.

          Unlike some other cards they still charge an international transaction fee though.

  •  

    is the annual fee charged straight away? i am thinking of cancelling the card after getting the cashback.

  • +1 vote

    If you have a cba home loan and sign up for the wealth package, all credit cards fees are waived.

  •  

    Darn, still within the 12 months since I churned their last cashback offer. Still a good deal for anyone eligible

  • +2 votes

    Got the last deal.
    My net outcome was a 10TB WD My Book Hard Drive + 12 months of Amazon Prime all for $8.
    It was great timing.

  •  

    What sort of income and savings do you need?
    I'm a uni student with a part time job so this will be my first credit card.
    Sorry if this sounds stupid, I'm new to the credit card game

    •  

      normally with a entry card, around $30,000 is benchmarked.

      savings you can just put any reasonable number as they don't normally check.

  •  

    Does anyone else get constantly hit by Commbank's debit excess fee? It's usually 2-10c at a time. I don't get what it's for.

    • +1 vote

      It's supposed to be for overdrawing your transaction account. A quick google says they've had many issues with this. I'd just change banks.

      • +1 vote

        Yeah I would never be able to withdraw my account because it is debit, not credit. But that's a good idea. Commbank does nothing other banks can't do.

        • +1 vote

          Checkout ING.

          Also "Up" if you want to be on the cutting edge - cloud based banking with lots of money management features in the pipeline. (Targeting gen z or whatever the youngest adults are.)

  • +1 vote

    I signed up when it was $250. Would it be better for my credit score to keep it for 11 months before cancelling?

  •  

    i have a feeling they're going to make more than $140 per person that gets one of these, just a hunch.

    •  

      Not on everyone. It’s feasible to use this deal and only make two transactions. $500 purchase. Wait. Then a $200 purchase. You might even be able to get the $200 credit as a cheque and skip the second purchase.

  •  

    If you cancel the card within 30 days of paying the annual fee then you can ask them to refund the fee. This is achievable if you spend $500 quickly. I've taken up these offers the last 2 years and cancelled the cards shortly after and my credit score is still excellent so not sure how much credit enquiries actually affect it.

    •  

      Can you get the $299 credit within 30 days of paying the annual fee?

      • +1 vote

        My cashback came through 11 days after spending $500. The annual fee appeared 12 days after opening the account but I think you get up to 55 days to pay it on the monthly statement plus another 30 days to cancel and claim a refund.

        •  

          I’ll certainly give it a go. Gotta make sure I have a $500 bill lined up or maybe I’ll just put $500 on my electricity bill and put it in to credit…

    •  

      How do they refund it after you have closed the credit card, send the refund to your bank account or send a cheque or something?

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