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Coles Low Rate MasterCard

My rate: 
17%
 
My annual fee: 
$90
 
Transfer: 
$5,000
 
From: 
All banks
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Coles Low Rate MasterCard
APPLY BY 28 feb 17
22 reviews
$100 off one Coles Supermarket shop if you apply and are approved by 28th Feb 2017.
Low ongoing purchase rate of 12.99% p.a.
Low annual fee of $49 p.a.
Add to comparison
6 months
0% p.a.
then 12.99%
12.99% p.a.
ongoing
$49
ongoing

Pros & cons

What's good?

What's not so good?

$100 off one Coles Supermarket shop if you apply and are approved by 28th Feb 2017.
Low ongoing 12.99% p.a. interest rate on purchases.
Low annual fee of $49 p.a.
If you use the balance transfer on this card and leave an amount not paid off at the end of the 6 months, it will attract the 12.99% p.a. interest rate which is very low.
Collect 1 flybuys point for every $2 you spend at Coles Supermarkets on your Coles Low Rate MasterCard.
Instant rewards with $10 off your Coles shop every time you redeem 2,000 flybuys points at Coles Supermarkets.
Free delivery when you shop at Coles online every time your spend $100 or more with your Coles Low Rate MasterCard at Coles online.
Checkout faster using MasterCard PayPass.
Late payment attracts a $20 charge.

New customers who apply and are approved for a Coles Credit Card between Wednesday 4 January and Thursday 28 February 2017 and make a purchase (excludes cash advances) within the first 30 days of the card approval date will receive $100 off a single Coles Supermarket shop. $100 off will be activated on your flybuys account and available for use within 2 weeks of your first eligible purchase. $100 off will only be activated on the flybuys card quoted in the application process. To redeem the $100 off you must scan your flybuys barcode on the back of your new Coles MasterCard and spend a minimum spend of $100.05 after savings and discounts in one transaction at Coles Supermarkets or BI-LO(excluding smoking/tobacco product purchases and all gift cards). $100 off can only be used once and expires on 31 May 2017. Excludes Coles Express and Coles Online.

MasterCard and the MasterCard brand mark are registered trademarks of MasterCard International. Credit facility provided by Wesfarmers Finance Pty Ltd (ABN 58 601 282 455), Australian Credit Licencenumber 470916.

Review

Our review of the Coles Low Rate MasterCard

If, like more than a quarter of Australians, you do most of your shopping at Coles, you’d be mad not to give some serious consideration to the Coles Low Rate MasterCard. With a low minimum income requirement of $25,000 and credit limits starting at a manageable $500, this card is ideal as either a starter credit card or a permanent way to maximise your flybuys points. And if you do hit a bump in the road with your repayments, it has one of Australia’s lowest credit card purchase interest rates.

Exceptionally low 12.99% p.a. purchase interest rate

Many credit cards have purchase interest rates of over 20% p.a. This is the interest rate you will pay on your previous month’s credit card purchases, and all future credit card purchases, if you are unable to pay the full balance of your account on or before the monthly payment due date. So it’s a pleasant surprise to find a credit card with a purchase interest rate as low as 12.99% p.a.. It may not be as low as mortgage or even personal loan interest rates, but it can mean the difference between being able to get on top of your repayments or falling into long term debt.

Interest-bearing credit card debt, incurred when you miss or fall short of full monthly repayments, is best avoided. But if you think you may find yourself in temporary financial difficulties, it’s far better to have a Coles Low Rate MasterCard than a card which will add 20% p.a. or more to your debt, compounded daily.

Fairly standard cash advance rate

The card’s low rate does not extend to the cash advance rate, which is a credit-card-normal 19.99% p.a.. This is the interest rate applicable to any cash you withdraw against your credit limit, at an ATM or a supermarket checkout for example, and it is applied from the date you take the cash advance until the date you repay it in full.

An astounding ‘Up to 62 days on purchases interest-free

Some credit cards let you clear your account 14 days after the end of the monthly billing cycle without incurring interest. Other cards, more generously, allow 25 days to elapse before payment is due. These cards are described as giving ‘up to 44 days interest free’ or ‘up to ’55 days interest free’. That is, if you made a purchase on the first day of your billing cycle you would not need to pay for it until 44 or 55 days later, and provided you paid on time you would not incur any interest.

The Coles Low Rate MasterCard stands out from its competitors because it does not require cardholders to settle their account until a remarkable 32 days after the end of the monthly billing cycle, thus delivering Up to 62 days on purchases. So, if your average monthly credit card purchases amounted to $1,000, you could leave the $1,000 cash for your payment in your mortgage offset account, or interest-earning bank account, for an extra 7 to 18 days each month, delaying your payments by a total of 84 to 216 days each year. Even in the current low interest rate climate, you could probably earn around $7 to $18 a year in additional interest, or reduce your mortgage interest by an annual $12 to $30.

If you miss a payment or pay late, you’ll sacrifice those “Up to 62 days on purchases for two months” – incurring interest from the day purchases are made – as well as paying a very steep $20 late payment fee. The interest-free days are generous, but it will hurt if you try to stretch that generosity any further.

Earn extra flybuys points to add to standard points earned at Coles

Like most regular Coles shoppers, you probably know that you can already earn one flybuys point per dollar on your supermarket spending, no matter how you pay at the checkout – with cash or with any card. So why not bump up that points earning rate by 50%, just by paying with a Coles Low Rate MasterCard? You’ll get one additional flybuys point for every two dollars you spend at Coles using your card: that’s an extra 0.5 points dollar, bringing your total to a healthy 1.5 points per dollar.

About flybuys

You can earn flybuys points at lots of retailers, not just Coles. Flybuys is Australia’s most popular loyalty program and because membership is free you’re probably already collecting flybuys – without having to change your spending habits – at retailers like Kmart, Target, Coles Express, Liquorland and First Choice Liquor, as well as at other major organisations like Telstra, Medibank, AGL, Budget, OPSM, Adidas and Weight Watchers, and a large number of online shops.

Since you can already collect flybuys at so many places when you shop, it makes sense to add to them by collecting not just one, but 1.5 points per dollar, at Coles. You can earn as many points as you like, because the rate at which you can earn them is not capped.

Redeeming flybuys points

One of the most popular ways to redeem your flybuys points is by converting them into flybuys dollars. You can convert 2,000 flybuys points into ten flybuys dollars, which you can use to get a $10 discount of your bill next time you shop at a Coles or BI-LO supermarket, Liquorland, First Choice Liquor, Coles Express, Kmart, Target, or Kmart Tyre & Auto Service.

Alternatively, convert your flybuys points into a gift card to spend at restaurants, Best Western Motels, JB Hi-Fi and elsewhere. Or redeem them for a range of merchandise, including home and garden, fashion, technology, travel, entertainment and lifestyle products.

Free delivery when you shop at Coles online

When cardholders spend $100 or more in a single order at Coles online (excluding any amounts spent on tobacco products) their order will be delivered absolutely free, unless they live in a particularly remote area. You can check if delivery to your area is available by visiting shop.coles.com.au.

Low annual fee

If it wasn’t so much of a mouthful, the card’s name really ought to be ‘Coles Low Rate Low Fee MasterCard’, since you’ll pay only $49 p.a. a year in account-keeping fees. That’s a very reasonable fee for a rewards card because you are not paying for any other benefits, like ‘free’ travel insurance or extended warranty insurance, that you may not be able to use. You can have up to eight supplementary cardholders on your account – family members perhaps, who can help you to earn flybuys – without paying any extra fees.

Upgrade to a Platinum card

However, if the thought of complimentary benefits does appeal, there’s a relatively easy way to obtain them. If you apply for a credit limit of $6,000 or more, and your limit is approved, you’ll automatically receive a Platinum Coles Low Rate MasterCard. This gives you access to a worldwide concierge service for travel and entertainment recommendations and bookings, as well as complimentary merchandise protection insurance, covering items bought with the card against loss, theft or damage for 90 days.

Convenience and security

The Coles Low Rate MasterCard comes with a host of inbuilt convenience and security features:

  • It’s an all-in-one MasterCard and flybuys card, meaning there’s one less card to carry in your wallet.
  • You get a free Coles Mobile Wallet, letting you pay, collect flybuys points and keep track of your transactions with your phone.
  • The card has MasterCard Tap & Co, for speedy, PIN-free purchases under $100.
  • The Falcon fraud management system is always alert for suspicious transactions on your account.
  • The MasterCard Zero Liability Guarantee gives you protection if your card is lost or stolen, providing you have taken normal precautions and immediately report any loss or theft.

Competing low interest rate cards

While this card has one of the lowest credit card interest rate regimes in Australia, it is not the lowest. The ME frank Credit Card charges interest at 11.99% p.a.. on both uncleared purchase balances and cash advances, as well as charging $0 p.a. annual fee.
The St. George Vertigo Platinum Credit Card offers a purchase interest rate of 12.74% p.a. and a 18 months month 0% p.a. interest balance transfer, but its annual fee is $99 p.a..

But unlike the Coles card, neither of these cards allows you to earn rewards points.

Probable cardholder profile for this card

Those likely to derive maximum benefit from the Coles Low Rate MasterCard will already be regular shoppers at Coles and its flybuys partner organisations. They don’t need to be high income earners, frequent flyers or big spenders to recognise the value in a straightforward loyalty discount, extra-long interest-free days, and a low purchase interest rate to make temporary financial difficulties more bearable.

User reviews

4.1 out of 5.0 based on 22 reviews95% of reviewers would recommend this card.

Rates and fees
Rewards
Customer service
Convenience
Trust
Disclaimer: The opinions expressed about credit cards are the reviewer's alone, and do not reflect the views of Credit Card Compare or the credit card issuer. Reviews have not been approved or otherwise endorsed by Credit Card Compare.

The interest rate was higher than I would like

Reviewed and not recommended by Roshani on 23 Dec 2016

The interest rate for this Coles card is bit higher than I would like. Furthermore, I have to pay nearly $150 per month for $6000, which is a high interest charge.

Also it is annoying how the message pops up in the phone app, a courtesy message. Also, for the interest payment I keep getting phone calls, which is bit intimidating. I took the card as I was in need before, which was useful and I am always grateful to Coles. But there are certain things that bother me.

Exceptional service, no waiting

Reviewed and recommended by Ben on 09 Dec 2016

This is an excellent card which I would strongly recommend, in all areas. Customer service is exceptional, with very little wait time on the phones. Fees are good and the card can be used almost anywhere, and unlike other banks’ cards I have been able to use this without any issues, which seem to be fairly common.

Great rates and ease of use

Reviewed and recommended by Carla on 08 Dec 2016

There’s a great 18 months interest-free deal on purchases, with a low rate after the interest-free period finishes.

The card can be linked to flybuys to gain flybuys points for every purchase, and you can use rewards instantly.

The Coles MasterCard app gives you access to account information on the go. and is easy to use.

Fee a bit high for a pensioner

Reviewed and recommended by Rada on 04 Dec 2016

Coles MasterCard is not bad. It helps me out when paying bills, etc, but the fee is a bit high for a pensioner like myself. I’m not really sure what the rewards are in this card. I think I get bonus flybuys or something, but i’m too old to understand all that!

Pay no interest, get flybuys - win win situation

Reviewed and recommended by Mick on 17 Nov 2016

It’s a great idea if you only have a low credit limit. The best idea is to get card with a limit around $1000, pay $1000 in advance, then don’t let the balance get to $1000.

You also receive flybuys points, which you redeem for flybuys money. Keep the card in credit and pay no interest. Win win.

Great savings!

Reviewed and recommended by Lucinda on 21 Oct 2016

With this credit card, the annual fee is only $49 and with a low 9.99% p.a, on purchases, this is one of the best savings you can get with a credit card.

As a student I was able to pay a large sum for my school fees and supplies and not have to worry about the added interest as the first 3 months were interest-free.

It’s also linked to the flybuys loyalty program and has also offered an app in which you can make purchases from your phone and keep track of your spending. These are all such great added bonuses that you don’t often come across. Thank you Coles for your amazing loyalty.

Great rates, awesome app

Reviewed and recommended by Libby on 10 Oct 2016

This card has been great, giving me personal loan rates on a credit card. There’s a great interest-free period on balance transfers and brilliant flybuys rewards.

The app is really easy to use on your phone and you can check your balance anywhere. Love it. I would happily recommend it to anyone.

Flybuys and excellent customer service

Reviewed and recommended by Gaelle on 23 Sep 2016

My experience has been great so far. It’s easy to use in conjunction with flybuys and the customer service is excellent.

The card application was fast and i received the card within three days of my application. Overall, I would recommend this card, especially because of the low fees attached to it.

Earning rewards so much faster

Reviewed and recommended by Misha on 21 Sep 2016

I do all my flybuys shopping with this card — grocery shopping, Target, Kmart and the rest. I’m earning rewards soooo much faster and I love it, it’s great :)

I would definitely recommend this to anyone who uses the Coles flybuys rewards card and wants a low interest credit card.

Do the maths

Reviewed and recommended by Terry on 20 Sep 2016

It is good if you are wanting to earn extra points at Coles for more shopping. My recommendation is to review the situation and decide whether you will use the 'no annual fee’ card (1 point for $2) or the 'annual fee’ card (2 points for $1). If you do the maths it works out.

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Basic details

About this card

Card setup
Single
Card tier
Standard
Card type
MasterCard
Card use
Personal
Credit rating
Any
Gambling transactions allowed
No
Joint application
No
Minimum age
18 years old
Minimum income
$25,000
Minimum income for pensioners
N/A
Pensioners
N/A
Rewards program
flybuys
Temporary residents
N/A

Cardholders

Additional cardholders
8
Additional card fee
$0 p.a.

Credit limits

Minimum credit limit
$500
Maximum credit limit
$25,000

Repayments

Interest charged from
Purchase date
Interest free period
Up to 62 days on purchases
Minimum repayment
2%

Balance transfers

The offer

Interest ratePeriodFeeLimitRevert rate
Balance transfers0% p.a.6 months0%80% of credit limit12.99% p.a.

Balance transfers to this card

Balance transfer earns rewards
No
Balance transfer fee payment due
First statement
Balance transfer from personal loan
N/A
Balance transfer processing time
10 - 14 days
Interest free days with unpaid balance
0 days
Maximum balance transfer
80% of credit limit
Available to existing customers
No

Banks you can't balance transfer from

You can't balance transfer to the Coles Low Rate MasterCard at the promotional balance transfer rate from:

  • Coles
  • Latitude Financial Services

Rates & fees

Promotional interest rates

Interest ratePeriodFeeLimitRevert rate
Balance transfers0% p.a.6 months0%80% of credit limit 12.99% p.a.
PurchasesN/AN/AN/AN/A N/A

Ongoing interest rates

MonthlyAnnually
Cash advances 1.67% 19.99% p.a.
Purchases 1.08% 12.99% p.a.

Fees

Annual fee
$49 p.a.
Annual fee 2nd year
N/A
Cash advance fee
2%
Dishonour fee
N/A
Duplicate statement fee
$4.50
Foreign exchange fee
3%
Late payment fee
$20
Over limit fee
$9
Overseas ATM balance fee
$0
Overseas ATM withdrawal fee
$5
Overseas emergency card replacement fee
$45.00
Transaction verification fee
$10.5

Rewards

Cool stuff you can get with your points

Disclaimer: Does not include taxes, fees, or charges. Accurate as of 25th January 2016.

Rewards program basics

Reward points expiry
Never as long as you keep your account active
Rewards program
flybuys
Sign up bonus
N/A
Spend required for bonus points
N/A

Earning points with this card

Frequent flyer points
0.5 pt per $1 spent
Overseas earn rate
Same as standard earn rate
Points cap per month
No
Points cap per year
Unlimited
Reward points
0.5 pt per $1 spent

Additional benefits

Airport lounge access
N/A
Complimentary flight voucher
No
Concierge service
N/A

Benefits

This card comes with benefits worth an estimated $95

ShoppingEstimated value
Free delivery of goods purchased
Valuation based on an average $9.50 delivery fee in metro areas. Assumes 10 deliveries per year.
$95
Purchase protection
If approved for a credit limit of $6,000 or more, it becomes a Platinum card with Purchase Protection insurance worth $40.
$0
Total estimated value$95
Annual fee$49
Net customer value$46
Disclaimer: Details of who, what, and where coverage applies to, as well as its duration and any coverage limitations will be listed in the credit card insurance product disclosure statement (PDS) on the card issuer's website. The names/labels of complimentary insurance products may differ from one issuer to another. Terms and conditions apply. Always check the insurance PDS when considering a financial product. Accurate as of 31st October 2015.

Minimum criteria for this card

What you need before applying

Be over 18 years old
You are a resident or citizen of Australia
Earn a regular income of more than $25,000 per year
You have your personal details ready to complete the online application
Have not applied for multiple credit cards recently
Joint applications are not allowed
Disclaimer: The minimum criteria pointers are intended only to be a guide. Your application may still be rejected by the bank even if you can answer 'Yes' to all the minimum criteria. The final decision regarding your application is up to the bank.

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