One of Australia’s biggest banks has launched a credit card with no interest charges or late fees.
NAB’s StraightUp Card allows consumers to pay the same fee every month.
A customer with a $3,000 limit incurs a $20 monthly fee on the understanding they pay off a minimum $110 each month from their Visa credit card.
NAB has launched a credit card with no interest charges or late fees – but the bank will block your account if you do not meet minimum repayment amounts
Someone with a $1,000 limit must pay off $35 a month, which includes a monthly $10 fee.
A borrower with a $2,000 limit must pay off $75 a month, taking in a standard $15 charge.
Unlike traditional credit cards, this National Australia Bank product doesn’t keep charging interest the longer a bill remains unpaid.
The StraightUp credit card, however, blocks any customer who has missed a payment.
‘Customers are required to pay the minimum payment or the card may be blocked,’ a NAB spokeswoman said.
‘When customers have missed a payment, they will be alerted and contacted by NAB as with our existing products.’
Shoppers pictured in Melbourne in 2018. NAB’s StraightUp Card doesn’t charge interest or foreign currency fees
Customers can set up payment reminders using internet banking and will also receive SMS reminders three days out from their due date.
‘There’s a lot we can do to help and urge customers to contact us as soon as possible if they are struggling to meet payments,’ the spokeswoman said.
There are also no foreign currency fees.