Coles Low Rate Mastercard

What do you want this card for?
Save money
Earn points
My monthly spend: 
$5,000
 
Offer
Card features
Rewards program
Earn rate
Sign up bonus
Points earned
Coles Low Rate Mastercard
Low ongoing purchase rate of 12.99% p.a.
Low annual fee of $58 p.a.
Collect 1 flybuys point for every $2 you spend at Coles Supermarkets.
Add to comparison
flybuys
flybuys
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Pros & cons

What's good?

What's not so good?

Low ongoing 12.99% p.a. interest rate on purchases.
Low annual fee of $58 p.a.
Collect 1 flybuys point per $2 you spend at Coles Supermarkets on your Coles Low Rate Mastercard.
Get $10 off your Coles Supermarket shop, instantly at the till, every time you redeem 2,000 flybuys points.
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 contactless.
Late payment attracts a $10 every 7 days.

Our review

Our review of the Coles Low Rate MastercardReviewed by Yvonne Taylor

If, like more than 30% 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 $2,000, 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.

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 domestic cash advance rate

The card’s low rate does not extend to the domestic 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.

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 flybuys point for every 2$ spent at Coles supermarkets using your card: that’s an extra -, 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 Medibank, AGL, Budget and Adidas.

Since you can already collect flybuys at so many places when you shop, it makes sense to add to them by collecting not just 1.0, 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 off your bill next time you shop at a Coles, BI-LO, Liquorland and Kmart.

Alternatively, convert your flybuys points into Virgin Australia Velocity Frequent Flyer Points, or a gift card to spend at Coles, Kmart, Target, JB Hi-Fi and selected restaurants. 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 $58 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 4 supplementary cardholders on your account – family members perhaps, who can help you to earn flybuys for an additional $10 per card p.a.

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.
  • The card has Mastercard Tap & Co, for speedy, PIN-free purchases under $100.
  • The 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.

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

4.0 out of 5.0 based on 24 reviews92% of reviewers would recommend this card

Rates and fees
Rewards
Customer service
Convenience
Trust

Reviews from users

Not impressed with account operation

Reviewed and not recommended by Paul on 30 Oct 2017

It was sold to me as a no-fee credit card. But it turns out there are fees. To set up a direct debit you have to send a physical letter – yes, I’m not kidding. It took them nearly three months to process my direct debit request. Once they did, the delay on the direct debit meant that we had already paid it off for the month but they withdrew money anyway, so the account ended up in credit.

Day-to-day usage is fine, but their online services portal is extremely limited and any correspondence seems to require a physical letter. Bizarre!

We ended up closing the account after we bought a house. We called up and made a payment to close the account off, and were assured that we had closed the account, all was good. Two weeks later, another direct debit of over $1800 was taken from our account. This happened two days after our baby was born so we didn’t notice the extra repayment until two and a half months later, and then only when we went back through our old transactions with Pocketbook (great product btw). Coles Mastercard didn’t notify us that they had taken an extra $1800 and it was sitting in a closed account (not earning anything for us, I might add).

After finally getting past the automated voice and speaking to a human when we called up, we have been told we need to write yet another physical letter (paying for postage) to request a refund. It boils my blood that this can happen in this day and age. As far as I can tell, and from what I was told on the phone, this may happen to anyone who has a direct debit set up with this card, and who wants to close their account. The backward nature of this operation has cost me time, effort and money. I would not recommend it.

I saved money through zero interest promotion

Reviewed and recommended by Harshdeep on 02 May 2017

I would say it’s a good service. Their zero interest promotion program is really good. I would say that it’s better than many.

I recommended this card to my friends and they are happy as well. I just want to say that it has saved me money. Overall, it’s a really good service.

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.

Show 14 more reviews
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 basics

About this card

Card setup
Single
Card tier
Standard
Card type
Mastercard
Card use
Personal
Credit rating
Good
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
4
Additional card fee
$10 p.a.

Credit limits

Minimum credit limit
$2,000
Maximum credit limit
$60,000

Repayments

Interest charged from
Purchase date
Interest free period
Up to 55 days on purchases
Minimum repayment
2%

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
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

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 1.08% 12.99% p.a.

Fees

Annual fee
$58 p.a.
Cash advance fee
3%
Dishonour fee
$0
Duplicate statement fee
N/A
Foreign exchange fee
1.5%
Late payment fee
$10
Over limit fee
$0
Overseas ATM balance fee
$5
Overseas ATM withdrawal fee
$4
Overseas emergency card replacement fee
$0
Transaction verification fee
$0

Rewards & points

Cool stuff you can get with your points

Disclaimer: Points required accurate as of the 31st March 2018.

Rewards program basics

First purchase bonus
N/A
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
N/A
Overseas earn rate
Same as standard earn rate
Points cap per month
No
Points cap per year
Unlimited
Points earned on ATO payments
N/A
Reward points
1 pt per $2 spent

Additional benefits

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

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
Have a good credit history
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 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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