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Credit Card Changes 1 Nov 2019

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Following a recent review, members will notice a few changes to their credit card account, effective from 1 Nov 2019.

The changes have largely been driven by the Government’s credit card reforms that were implemented earlier this year.

First Option has been monitoring the impacts of these reforms throughout the year to ensure that products are structured in a way that continues to mutually benefit all members.

Changes for Cash Rewards Credit Card holders

The Cash Rewards program is being discontinued. We will be moving members to a “Low Rate” credit card account on 1 November 2019. This means that members will no longer accrue points for cash rewards.

However, the interest rate on purchases will drop from 17.99%pa to a low 9.99%pa.

Also, we will be charging $48 as an annual fee, rather than as monthly instalments. There is no change to the total fee that you pay as members currently pay $4 per month.

The fee will be charged on the anniversary of the date that your credit card account was opened. You will receive a letter in the mail specifying your anniversary date.

Note: If you have a Packaged Home Loan at First Option, you will continue to be exempt from this fee.

Changes for Low Rate Credit Card holders

We are introducing an annual card fee of $48. The fee will be charged on the anniversary of the date that your credit card account was opened. You will receive a letter in the mail specifying your anniversary date.

If you have a Packaged Home Loan at First Option, you will be exempt from this fee.

Note that the interest rate on purchases will continue to be a low 9.99%pa.

Update to how “Interest Free Days” are applied

Members will continue to have up to 45 days interest free on purchases. This is a benefit afforded to cardholders who pay off their balance in full by the due date. However, if the closing balance on your Credit Card statement is not paid in full by the due date, then interest free days will not apply to any new purchases – going back to the day after the most recent statement.

Smooth Transition

There is nothing you need to do as a result of these changes – we will look after everything for you!

If you have any questions about the upcoming changes to your credit card, please contact the friendly team at First Option.