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Coles No Annual Fee MasterCard

My rate: 
17%
 
My annual fee: 
$90
 
Price of my purchase: 
$5,000
 
offer
card features
balance transfer
purchase rate
annual fee
your savings
Coles No Annual Fee MasterCard
APPLY BY 28 feb 17
73 reviews
$100 off one Coles Supermarket shop if you apply and are approved by 28th Feb 2017.
Earn 1 flybuys point for every $2 spent.
No annual fee to pay, ever.
Add to comparison
6 months
0% p.a.
then 19.99%
19.99% p.a.
ongoing
$0
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.
No annual fee to pay, ever.
0% p.a. on balance transfers for 6 months.
Coles give you up to 62 interest free days on purchases if you pay your monthly statement off in full and on time.
Earn 1 flybuys point for every $2 spent – everywhere, everyday.
Get $10 off your Coles Supermarket shop, instantly at the till, every time you redeem 2,000 flybuys points.
Protected by the Coles Shield.
After the 0% p.a. balance transfer period is completed, any unpaid balances will be subject to the 19.99% p.a. interest rate.

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 Licence number 470916.

Review

Our review of the Coles No Annual Fee MasterCard

Are you one of the more than 10 million Australians who is a member of the flybuys rewards program? You certainly should be if you shop at Coles, Kmart, Liquorland, Target and Coles Express, or do business with Budget, Telstra, AGL, Medibank, OPSM or Weightwatchers. Now you can earn points 50% faster (in most cases) without it costing you a cent, courtesy of the Coles No Annual Fee MasterCard.

Never pay an annual fee again

‘NO annual fee ever’ is what Coles says about this card. But the absence of a fee doesn’t lead to a lack of features. This credit card does everything that the more expensive cards do. It’s:

  • Fast and convenient – MasterCard PayPass lets you Tap & Go for transactions under $100, or just tap and enter your PIN for larger amounts
  • Safe and secure – backed by the Falcon system, on constant alert for suspicious transactions or fraud, and a zero liability guarantee provided you follow a few standard precautions
  • Accessible and up-to-date – you can access your account easily online, and download the Coles Mobile Wallet app so that you can make payments using your phone instead of the card

But this fee-free card also has another feature that is missing in cards for which you might pay over $100 per year. It can act as a combined credit card and flybuys card, so that you only need to carry one card instead of two, or no card at all if you use the Coles Mobile Wallet to collect your flybuys points.

The ‘no annual fee’ promise also extends to supplementary cards on your account, so that you can apply for cards for family members and accumulate flybuys even more quickly.

Standard credit card interest rates

If you’re looking for a card without an annual fee attached, your concern with cost probably extends to avoiding interest charges as well. So if you plan to pay off your account balance in full and on time every month, thus completely avoiding both interest costs and late payment fees, you are unlikely to be troubled by the news that both the purchase and cash advance interest rates are a fairly typical 19.99% p.a..

Earn 1 flybuys point for every $2 spent, everywhere

Most credit card rewards programs come at a cost, in the form of the card’s annual fee. While it is often possible to recoup more than the cost of the fee in rewards value each year, wouldn’t it be great to earn points without that upfront liability hanging over your head? Well, now you can do just that.

In most cases flybuys program partners already let you earn one point for your spending no matter how you pay, and it costs nothing to join the program. The Coles No Annual Fee MasterCard adds an extra0.5 pt per $1 spent, everywhere. So it makes sense to let your credit card earn extra points to add to those you are already collecting.

For 2,000 flybuys points you can get $10 off your Coles supermarket bill. That’s $2,000 of spending (with the vast majority of program partners) in cash or using another credit card. Pay with your Coles No Annual Fee Credit Card instead, and you only need to spend $1,333 with flybuys partners for that same $10 discount.

Other ways to redeem flybuys points

Although the instant cash discount at the Coles, Target or Kmart checkout is probably the most popular way to redeem flybuys points, there’s no shortage of other options:

  • Convert them into a $50 or $100 shopping gift card to give to someone else, at the same rate (i.e. 2,000 points per $10)
  • Redeem them for home and garden, fashion or technology products at the flybuys online store, starting from as low as 5,200 points
  • Exchange them for dining experiences or wine and spirits, starting from around 4,500 points
  • Swap for entry to entertainment attractions, such as the Sydney Tower Eye – two adult entries for 4,500 points
  • Choose from a range of Australia-wide hotel and resort accommodation, for example one night at the Ibis Hotel in Melbourne’s CBD for 23,100 points
  • Convert them to frequent flyer miles with Etihad Airways – 10,000 points per 4,000 miles

For added flexibility, all reward options come with a Points + Pay feature, in case you don’t have quite enough points for your chosen redemption.

Generous Up to 62 days on purchases, better than a zero interest balance transfer

While other cards may plug their ‘up to 44 days interest free’ and ‘up to 55 days interest free’, Coles should be shouting their ‘Up to 62 days on purchases’ from the rooftops.

So, what does it really mean? It means that when your monthly billing cycle for this card ends, there are still at least 31 more days before you have to come up with the cash, providing you have constantly being paying off your balance on or before the due date. If you used this card to buy something on day one of the cycle, you wouldn’t need to pay for it until 62 days later. And if you bought something at the end of the month, on day 30 or 31, you’d still have another interest-free month ahead before you needed to come up with the cash.

That adds up to a lot of extra time to leave your money in the bank, earning interest or reducing your mortgage interest in an offset account. It provides 216 more interest-free days every year than a 44-day card does. That’s the equivalent of getting a zero-interest balance transfer for seven months every year, not just your first year. It’s worth remembering this when comparing the Coles No Annual Fee MasterCard with cards which may be offering an introductory zero- interest balance transfer.

Free delivery at Coles Online

Here’s another perk for cardholders. Use your card to spend $100 or more (excluding tobacco products) at shop.coles.com.au, and your order will be absolutely free of delivery charges, which Coles say are normally between $4 and $14. However, you will need to live in or near a major population centre to get your order delivered. You can check to see if delivery is available by visiting shop.coles.com.au and entering your postcode.

Higher credit limit brings more benefits

If you only intend to use your card as an ancillary card, for flybuys partner shopping only, you may be looking for a low credit limit. Understandably though, Coles want you to use it as your main card. So if you apply for a credit limit of $6,000 or more, and have it approved, you will get a platinum level card with a couple of extra benefits.

Firstly, you’ll be granted access to a worldwide concierge service. Help with restaurant and other entertainment recommendations and bookings, as well as hotel reservations and other time-saving assistance, will be only a phone call or mouse click away, whether you are at home or travelling the world.

Secondly, you’ll get a free insurance policy to cover goods you bought using the card. This will cover your major purchases against loss, theft or damage for 90 days. Unlike most ‘complimentary’ credit card insurance policies, this one is truly free because the card issuer is not recouping the cost through the annual fee.

A card that wins awards

Financial data provider Canstar has awarded a five-star rating to the Coles No Annual Fee MasterCard in several categories in 2013, 2014 and 2015. In 2015 it received five stars in the ‘Outstanding value’ category in three spending groups – occasional spenders, everyday spenders and big spenders – plus a four-star rating for major spenders.

A look at competing ‘no annual fee’ cards

Coles are not the only credit card issuer offering something for nothing. The 28 Degrees MasterCard, the ME frank Credit Card and the Virgin Money No Annual Fee Credit Card all come without an annual fee attached, but none of these cards allows you to earn any kind of loyalty points.

The true competitors are the American Express Essential Credit Card ($0 p.a. , AmEx Membership Rewards, $50 cashback and extensive shoppers’ insurance), the Qantas American Express Discovery Credit Card ($0 p.a., Qantas frequent flyer points, purchase protection insurance) and the American Express Velocity Escape Card ($0 p.a., Virgin Velocity points, purchase protection insurance). All three cards offer a 12-month zero-interest balance transfer, but their 55 monthly interest-free days fall short of the Coles card’s Up to 62 days on purchases.

Why choose the Coles No Annual Fee MasterCard?

Coles have cleverly positioned this card to compete with the three no-fee AmEx loyalty cards. All four cards deliver rewards points and purchase protection insurance at no cost (as long as you choose a minimum $6,000 credit limit in the case of the Coles card). But the Coles card’s additional interest-free week each month makes all the difference.

Balance transfer offers expire, but the Coles card’s permanent extra interest-free days don’t. Unpaid balance transfers prevent you from qualifying for any interest-free days at all on purchases. There’s no balance transfer offer on the Coles card, just up to 62 interest-free days all the time.

The Coles No Annual Fee MasterCard is ideal for any regular Coles/Kmart/Target shopper who does not intend to run an unpaid purchase balance and who wants simple rewards, groceries delivered free, and possibly purchase protection insurance, all for zero, zip, zilch, nada.

Q&As about the Coles No Annual Fee MasterCard

Q: How many free cardholders can I have?

You can have up to 8 additional cardholders. It costs $0 p.a. for each additional card you set up.

User reviews

4.1 out of 5.0 based on 73 reviews92% 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.

Monster value

Reviewed and recommended by Cedrick on 07 Jan 2017

The first beauty of this card is that there is no annual fee. Another positive is that every time you shop there is a reward. When you receive the card and go make a big shop you’ll get $100 off!

Another big plus is that, as a convenience, you can order at Coles online and if the purchase is over $100 you get a free delivery every time. I’m very happy with this card.

A warning to everyone: if you’re going to have a credit card, you need to budget your cash flow 10 times harder as you need to remember it’s not your money you’re spending. So always pay the full amount owed, not the minimum due, before the payment due date.

Great card, with no catches so far

Reviewed and recommended by Byron on 10 Dec 2016

There’s no annual fee, so no $ up front. It’s a great option compared to 0% balance transfer cards, as you don’t have to foot the $75+ fee for that service. Instead, this card offers the simple solution of no interest on purchases for ages, then reverts to a standard rate at the end. It’s like a GE Finance option at a retail store, without the formidable 30% interest at the end, while you scramble to finish paying off your purchase. So far I haven’t found any catches with this card.

Very poor customer service

Reviewed and not recommended by L on 03 Dec 2016

I only found out my Coles Credit Card had been put on hold when I went to pay for my click and collect Coles order. My card had been declined. No notice, no emails or texts were provided. I spent hours waiting on hold on the phone, trying to talk to a “non-customer service” person. I saw a dubious transaction listed in my online statement which I did not make. I finally was connected to a person and they cut me off. After hours on hold again, I finally spoke to a person. Worst customer service ever.

$100 cashback on signing up

Reviewed and recommended by Paoley on 29 Nov 2016

This a a great card. There’s no annual fee. This card actually helps us to budget our spending. We can buy what we want or need and have plenty of time to pay it off, and never be out of cash.

When we signed up, we got $100 free and used it to buy beverages for our wedding. I would totally recommend getting this card.

Plenty of flybuys, no need to carry flybuys card

Reviewed and recommended by Katie on 06 Nov 2016

We got this card for the flybuys points, pure and simple. We don’t use flybuys to get any gifts, but the occasional $10 off our grocery bill is appreciated. The card has your flybuys barcode on the back, thus eliminating the need for yet another card in the wallet.

The web banking user interface is easy to use. The only drawback is that transactions are a bit slow to come in, but I think that’s pretty standard for most credit cards.

Awesome first-time credit card, with flybuys

Reviewed and recommended by Ashwny on 01 Nov 2016

Greatest first credit card ever — no fees, easy registration process. I would definitely highly recommend it to anyone. It’s trustworthy and the best card as it linked to flybuys — Number 1. Coles is very brilliant.

You must get this credit card, especially first-time credit card users. I highly recommend this card.

No annual fees, website could be improved

Reviewed and recommended by Ebrahim on 31 Oct 2016

No annual fees for life is a good positive for this card, as no other credit card provides this. Plus you get flybuys points with every purchase, anywhere.

It’s easy to use with PIN or PayPass. But it’s hard to find information on the website. The website can be made better for users. It does not provide the name of the merchant sometimes. But overall it’s very good.

What more could you want?

Reviewed and recommended by Zachary on 21 Oct 2016

Want a credit card with a rewards program?
Want a credit card with no annual fee?
Want a credit card with a no fuss application process?
Want a credit to use just for that emergency situation that you didn’t foresee?

Then look no further — the Coles No Annual Fee MasterCard is the card for you! From the application process until you first use your card, this product is a pleasantly smooth ride.

My only dislike is the interest rate

Reviewed and recommended by Lynda on 30 Sep 2016

I’ve owned this card for many years. I only have the one credit card. I didn’t choose it — I was transferred onto it when it replaced another card.

I’ve no major complaints. The service has been good, and I’ve been able to successfully negotiate a refund of the odd late fee, to my satisfaction. The credit limit has been flexible on the odd occasion I have gone over it.

I like that it gives me extra flybuys points when I do my grocery shop, and pay my power bill. The only negative for me is the higher interest rate.

Not my best decision

Reviewed and not recommended by Mick on 27 Sep 2016

This was my first credit card, with 19% rate, and a month later interest rates crashed and other Coles cards were 9%. But I still get flybuys points — that was my reason for getting the card. And at least it has no annual fee.

Otherwise it’s a fair card, but I think I might choose differently next time.

Show 63 more reviews

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
2.22%

Balance transfers

The offer

Interest ratePeriodFeeLimitRevert rate
Balance transfers0% p.a.6 months0%80% of credit limit19.99% p.a.

Balance transfers to this card

Balance transfer earns rewards
No
Balance transfer fee payment due
First statement
Balance transfer from personal loan
No
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 No Annual Fee 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 19.99% p.a.
PurchasesN/AN/AN/AN/A N/A

Ongoing interest rates

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

Fees

Annual fee
$0 p.a.
Annual fee 2nd year
N/A
Cash advance fee
3%
Dishonour fee
N/A
Duplicate statement fee
$0
Foreign exchange fee
2.5%
Late payment fee
$25
Over limit fee
$0
Overseas ATM balance fee
$0
Overseas ATM withdrawal fee
$4
Overseas emergency card replacement fee
$0
Transaction verification fee
$0

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
No

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$0
Net customer value$95
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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