That included consumers seeking better control and certainty around borrowing products.
Like NAB’s offering, CBA’s card will charge people a monthly fee, based on their borrowing limit, each time money is borrowed. That fee keeps ticking over while money is outstanding or when the card is used again; no fees are charged if the card is not used.
CBA’s card charges $12 a month for a $1000 credit limit, $18 for a $2000 limit and $22 for a $3000 limit. It would be used in conjunction with store reward campaigns, such as people spending $100 at electronics retailer JB Hi-Fi getting back $12, offsetting the monthly fee cost, Mr Sullivan said.
Mr Sullivan said if a borrower used a $3000 limit Neo card at the maximum over a year, the equivalent rate would be 8.8 per cent. “If you use less of the card, the rate becomes slightly more expensive,”