Credit card

Westpac Interest Free Credit Card: How It Stacks Up To CommBank + NAB

The Westpac Flex Card is coming soon, interest-free already and a $ 10 monthly fee that is waived if you don’t have an outstanding balance.

The features announced so far make the Flex card similar to NAB StraightUp and CommBank Neo, both of which offer zero interest and charge a fixed monthly fee.

A key difference for the Westpac Flex is that it only ships with a fixed credit limit of $ 1,000.

Both NAB StraightUp and CommBank Neo offer limits ranging from $ 1,000 to $ 3,000.

Table: Westpac Flex vs NAB StraightUp and CommBank Neo

Interest 0% 0% 0%
Credit limit $ 1,000 $ 1,000 to $ 3,000 $ 1,000 to $ 3,000
Monthly fee $ 10

Waived when you pay off your previous month’s balance on the due date.

Limit of $ 1,000 = $ 10 / month
Limit of $ 2,000 = $ 15 / month
Limit of $ 3,000 = $ 20 / month
Waived when you do not use the card or have no balance.
Limit of $ 1,000 = $ 12 / month
Limit of $ 2,000 = $ 18 / month
Limit of $ 3,000 = $ 22 / month
Waived when you do not use the card or have no balance.
Minimum reimbursements $ 40 per month Limit of $ 1,000 = $ 35 / month
Limit of $ 2,000 = $ 75 / month
Limit of $ 3,000 = $ 110 / month
$ 25 or 2% of the ending balance, whichever is greater
Late payment fees $ 0

But if you miss the minimum repayment due date, you won’t be able to use the card until you pay at least that amount.

$ 0 $ 0
Exchange fee 0% 0% 0%
Where can you use it? Wherever Mastercard is accepted

No cash advance or balance transfer

Anywhere the visa is accepted

No cash advance or balance transfer

Wherever Mastercard is accepted

No cash advance or balance transfer

Advantages Westpac rewards and extras

Mastercard Invaluable Offers

Visa + Benefits offers CommBank Rewards

Mastercard Invaluable Offers

Another big difference: While the NAB and CommBank options come with a plastic card and virtual cards for your mobile wallets, the Westpac Flex will primarily be a digital card that you can start using within minutes of being approved. .

There will also be the option of obtaining a physical card if you wish.

“We are offering customers a new way to pay that is simple, flexible and fast, as well as a fully digital experience from start to finish,” said Chris de Bruin, Westpac General Manager for Personal and Commercial Banking. .

The application process is also designed to be fast, he added, using real-time data to “quickly assess a client’s financial situation while taking steps to ensure that we lend responsibly.” .

Flex is for the “on-demand” generation who seek convenience and control, without the complexity. “

Chris de Bruin, Westpac

Once the request is approved, the card will be available through the Westpac app.

You can also add it to Apple Pay, Google Pay, Samsung Pay, or any of the other mobile wallets that support Westpac credit cards.

Below is a breakdown of the other key features:

  • Automatic payments. Your repayments are set up in the form of automatic withdrawals from the account of your choice, with a choice of 1 to 2 payments per month.
  • No late payment fees. Westpac said there will be “proactive payment reminders” to help keep you on track. But if you miss the minimum refund, you won’t be able to use the card until you do.
  • No cash advance or balance transfer. You will be able to mainly use the card for your daily expenses, in the same way as NAB StraightUp and CommBank Neo.
  • Guarantee of protection against fraud. While all credit cards offer this, the Westpac Flex has a dynamic CVC that changes every 24 hours.

Although no official launch date is yet available, you can register your interest in the Westpac Flex Card on the bank’s website.

Example: How does the Westpac Flex Card compare to buy now pay later?

The different functionalities of BNPL platforms like Afterpay and Zip Pay can complicate their comparison with the Westpac Flex Card. So here is an example of how they actually work in the real world.

Suppose you plan to spend $ 500 on Christmas shopping and plan to pay it back in 4 weeks. Here is a cost breakdown with the Westpac Flex card, Zip Pay and Afterpay:

  • Westpac Flex Card: $ 0, if your repayments match the due date shown on your statement. Otherwise, the $ 10 monthly fee goes into effect when you still have a balance.
  • Postal payment: $ 0, although, as above, a monthly fee of $ 7.95 applies if you still have a balance on the due date.
  • After-payment: $ 0 fee, and your payments can be refunded over 6 weeks if you want more time.

From this example we can see that the Westpac Flex card and Zip Pay are very similar with the monthly Zip Pay fee being slightly lower. And Afterpay is the big winner.

But what if you want to pay back the $ 500 over 8 weeks instead? Here’s what you would pay:

  • Westpac Flex Card: $ 20 – a charge of $ 10 per month (if you still have a balance on your statement due date).
  • Postal payment: $ 15.90 – a charge of $ 7.95 per month (if you still have a balance on your statement due date).
  • After-payment: Balances after payment are supposed to be paid in 4 installments over 6 weeks. If you took 8 weeks, you may be charged a late fee of $ 10 to $ 68, depending on your account balance. You also cannot buy with Afterpay until you have paid the account.

Zip Pay also has a late fee of $ 5, which is billed 21 days after the due date of your missed payment. And, of course, you should check the other details of each account, apart from this example. They will also be different with other BNPL plans.

In a word: The longer you want to reimburse your expenses, the more fees can start to accumulate with BNPL (depending on the plan). If you want more time to pay off, the Westpac Flex Card may be more suitable for you.

Interested in one of these non-traditional credit cards? Find out how they work and compare credit cards with no monthly fees now.

We updated this story on October 21, 2021 with a comparison example of the Westpac Flex Card to BNPL.
Images: Supplied


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