NAB Credit Cards – Detailed Guide & Frequently Asked Questions
Posted April 12th, 2010
NAB Credit Cards Guide
The current NAB credit cards are listed below. For each NAB credit card the additional insurance benefits available are also mentioned.
| Credit Card | Card Details | Interest Rate (p.a.) | Cash Advance Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual fee | Interest free days (up to) | |
|---|---|---|---|---|---|---|---|
| NAB Standard Card | Linked your credit card to FlyBuys at no charge. Includes a complimentary additional cardholder | 18.99% | 18.99% | 4.99% for 6 months | $30 | 44 | |
| NAB Velocity Standard Card | Earn Velocity rewards points that you can redeem for rewards. Two credit cards, one account, one annual fee – an AMEX for more points earning potential, and VISA for global acceptance. | 19.49% | 19.49% | 4.99% for 6 months | $65.00 | 44 | |
| NAB Velocity Gold Card | Earn up to 2 Velocity Rewards points per $2 spent on purchases. Also features an optional balance transfer. | 19.49% | 19.49% | 4.99% for 6 months | $150 | 44 | |
| NAB Gold Card | Includes complimentary interntational travel insurance. Save money whilst travelling with no Foreign Currency conversion fees. | 18.99% | 18.99% | $90 | 44 | ||
| NAB Qantas Gold Card | Includes both an American Express Card and a VIsa linked to the one account with one annual fee. No points expiry. | 19.49% | 19.49% | 6.99% for 6 months | $145.50 | 44 | |
| NAB Qantas Platinum Card | Earn Qantas Frequent Flyer points. Uncapped earning potential and no points expiry | 19.49% | 19.49% | 6.99% for 6 months | $290 | 44 |
How to apply for a NAB credit card
Once you’ve selected the NAB credit card that is best suited to your needs and circumstances, you may apply for that card using any one of the methods below. You can use the cards comparison page or read our detailed guide to better identify which one of the NAB credit cards is best for you. You can apply online by visiting the NAB credit card comparison page – After selecting a card click the ‘apply now’ button next to it.
If you’ve applied online you will get a response within minutes, and might be approved within 3 to 5 business days. In some cases there might be additional information required in which case it might be one more week before you know the application outcome. For phone applications you will receive a response within 24 hours, and upon successful outcome receive your card in 3 to 5 business days. Applications in person will be processed 4 days later, and if you send your application form by post it will be an additional 10 business days before you hear back from NAB.
You can check the status of your online application by quoting your Application Reference Number, which you should have received in the confirmation email. You may also visit the closest NAB branch and ask for updates on your application status at the information desk, or call 1300 361 138.
Getting to know your NAB credit card
This section of the guide will deal with questions that relate to generic usage of NAB credit cards. Use this to get acquainted with your new NAB credit card.
NAB Identification Number
The NAB Identification Number (NIN) is a unique identifier that is issued to all NAB customers. You can find your NIN at the back of your card, near the top, it is an 8 digit number. If you would like to confirm or reset your NIN you may call customer service on 13 22 65.
The Security Number
Every card comes with a 3 digit security number that is used for certain transactions to verify the ownership of the card. You can find your security number at the back of your card, right beside the signature field.
Transferring funds to and from NAB accounts
You can transfer funds between your NAB accounts (say from your NAB savings account to your credit card account) either with Internet banking or telephone banking. As soon as you receive your NIN (NAB Identification Number) register for telephone and Internet banking by calling 13 22 65. Your NIN will give you access to the convenient online banking platform, where you can transfer funds and pay your bills with ease from your NAB accounts.
Calculation of Interest
Interest on your credit card items is calculated multiplying the daily percentage rate (the annual percentage rate that is applicable divided by 365) with your aggregate balance outstanding. The aggregate balance is the sum of all transactions like purchases, cash advances etc. that you’ve made in the last statement period. It may also include special balances (e.g. any balance transfers) and will be indicated on your credit card statement. Each type of balance has a specific interest rate that is applicable to it, purchases are charged at one particular rate while cash advances are charged a different rate. After multiplying the daily percentage rate for purchases with the aggregate purchases amount, the product is summed for the number of days interest is accruing. This process is repeated for each type of balance outstanding, and the total figure is the interest amount charge in that statement period.
As an illustration, assume you have the following balance shown on your last statement: Aggregate balance $1000 (purchases $500, cash advance $500), and say the interest has been accruing for 10 days. Also assume the current interest rate for your card is 12% on purchases and 20% on cash advances (these are annual percentage rates). The daily interest in calculated thus:
Purchases – $500 x (12%/365) = $ 0.164
Cash Advances – $500 x (20%/365) = $ 0.274
The total daily interest is $ 0.438, and since it has been outstanding for 10 days, the total interest accrued is $4.38
Please not this calculation is for illustration purposes only and the rates quoted above are not the actual interest rate that will be applicable in your case. You can find the details on your particular card by reading its terms and conditions. If you would like to know more about how interest is calculated have a look at this brochure.
When is Interest charged?
If your card has interest free days, then interest on purchases is charged from the day after that period to the statement date. If it doesn’t then interest starts accruing from the day of purchase. This is also the case with cards featuring interest free days if you do not pay the full balance on each statement within the due date. Therefore to take advantage of the number of interest free days you should always pay your credit card bills in full every time.
Interest on cash advances are always charged from the day of transaction. Interest on special balances (like balance transfers) are charged according to the terms and conditions of that special promotion.
What is interest on interest
If you had only paid the minimum balance due (for example) and not the full balance in your last statement, then your credit card balance starts accruing interest. Your next statement balance would include the previous unpaid balance and the interest amount. If you pay the minimum balance again, then interest is charged on your previous unpaid balance as well as your interest payment that was due. The latter is dubbed ‘interest on interest’ and is the primary reason why credit card balances can grow so fast if left unpaid. You should always try to pay more than the minimum balance due each statement period, preferably the full amount.
Ways to reduce interest charges
You may further reduce or altogether eliminate your interest charges by following these suggestions:
- Pick a credit card with interest free days – Use the interest free period feature of many NAB credit cards to not pay interest on your purchases.
- Always repay the full amount due on your credit card bill – You must remember to pay off your full credit card statement bill each month, otherwise the interest free days period is void and you are charged interest from the day of purchase (back dated interest). Paying off your full bill also ensures you do not gather any interest on interest.
- Don’t make cash advance transactions with your credit card – Cash advances and similar cash equivalent transactions always accrue interest from day one, and is charged the highest rate of interest. Avoid cash advance transactions on your credit card (use a debit card instead for these transactions) and you save on significant amounts of interest.
Fees and charges
The annual fee is the most common type of fee on a NAB credit card. These and other fees do not get included on monthly credit card statements and never accrue interest. However you should be aware of all the fees and charges applicable to your card. You can find the details:
- Online – the Fees and Charges brochure
- In person – visit the local NAB branch and request a copy of the brochure
- Over the phone – call 13 22 65 and ask for a brochure to be mailed out to your address
NAB Visa payWave
The NAB Low Rate Visa card currently features a new contactless payment method called the NAB Visa payWave. With vendors and stores displaying the contactless indicator on their checkout machines you can use your NAB card to purchase items below $100 without swiping. You simply hold the card in front of the checkout machine and it reads the payment information directly, you don’t need to sign or enter a PIN. For larger purchases you do need to swipe the card and sign (or input PIN). This ‘traditional’ way of payment can of course be used on all merchants accepting Visa card payments, and who do not yet have a contactless reader machine.
Credit Limit Increases
For customers who have a good credit record NAB would periodically offer an increase in their credit limit. This is purely an optional offer and if you feel you do not need the extra credit you are free to decline the offer. To ensure you know the ramifications of accepting such an offer NAB will give you details such as what would be your new minimum repayment amount if you choose to accept the offer and spend up to the credit limit. They will also recommend you don’t accept the credit limit increase offer if you anticipate difficulties in repaying the balance.
NAB will not offer this to the following types of customers:
- Bad credit record – Indicated by missed payments or excessive cash advance usage
- Known to be in financial hardship (e.g. recently retrenched or facing illness)
- Had a recent credit limit increase
For existing customers NAB always offers the option of reducing their credit limit, which is a part of their bank-wide lending policy in adhering to proper debt management. You can always talk to a debt management specialist of the bank if feel you need more information by calling 13 22 65.
Using your NAB Credit Card
This section of the guide will deal with questions related to the day-to-day use of NAB credit cards, so that you can get the most out of your NAB credit card.
How much to repay
Your monthly credit card statement will show a minimum repayment amount, which is calculated as 2.5% of the aggregate balance (purchases, cash advances etc.) or $10, whichever is higher. If you fail to make this minimum payment by the due date you will incur a late payment fee, and start accruing interest on your full balance. This will also become a part of your permanent credit record, and will negatively affect your credit rating with the banks.
Therefore you should always make it a point to at least repay the minimum due. It is recommended to pay more than the minimum payment amount to reduce your interest charges. If you want to completely eliminate or minimize interest you should target paying the full balance due every month within the payment due date indicated in the statement. Some cardholders prefer to setup an auto debit feature in their Internet banking system, which automatically pays the minimum amount (or the full amount) of each statement balance directly from their NAB savings account. If you find yourself forgetting payment due dates while being perfectly capable of repaying the balance owed, you should consider implementing such an auto debit mechanism in your Internet banking account.
How to setup NAB Internet Banking
You will need your NIN ready at hand, then register for NAB telephone banking by dialling 13 22 65. Registration will provide you with a PIN that can be used both for further telephone banking and for setting up your Internet banking the first time. Visit the NAB Internet banking page to register using your PIN. You can always reset your PIN by calling 13 22 65.
Purchase Authorization
This is a hold on your banking account for a sum that you’ve used in a credit card transaction. Every time you buy something using your card the merchant records your credit card information for claiming later payment from NAB. Meanwhile NAB places a hold on your credit card account, so your available credit amount decreases. The purchase authorization hold stays in place for 7 days. If the merchant hasn’t made their claim you won’t see the transaction show up in your Internet banking system, but will see that your available credit is lower than what the displayed transactions would seem to indicate. After 7 days the hold is released, but you should note that the merchant still has 6 months to make the payment claim.
If the merchant does make the claim within that hold period you will see the transaction displayed in your account, which will be debited for the payment amount.
Lost or Stolen Card
If you have lost your card or it is stolen, notify the bank immediately at this number: 1800 033 103. If you’re overseas call +61 3 8641 9083 instead.
Unauthorized Card Transaction
You should report any unknown or unauthorized transaction on your credit card to NAB on this number: 13 22 65.
Change Credit Limit / Additional cardholder
Can be done in two ways:
- Internet Banking customers can login to the system, select the “Apply Now” and choose the “Credit Card Credit Limit” option
- Other customers who do not have access to Internet banking can fill out the form available in the ‘Manage your Credit Card‘ page of the NAB website and post it or drop it off in person at the local bank branch. This form can also be used to add or remove an additional cardholder in your credit card account.
Replacement Card
You can order your current card to be replaced by a new one by calling customer service on 13 22 65 or visiting the closest NAB branch.
Card about to expire
NAB will automatically send you a replacement card one month before your current card expires. In some cases the card might not be delivered to your home but rather to your nearest bank branch. You will be notified by mail when this happens. Get your PIN and visit the NAB branch mentioned in the letter to pick up your new card.
If your card has expired and you haven’t received a replacement card in your mail or in your local NAB branch, call customer service on 13 22 65 and advise them of the situation. Alternatively you can send a secure message to NAB through your Internet Banking messaging system.
That concludes our NAB credit cards guide, we hope it answers all your questions regarding your card, and makes the experience of using your NAB credit card that much more enjoyable.
Similar Posts:
- A Guide to the Five Most Common Credit Card Fees
- Cash Advance Fees
- Credit Card Health Check – Are You Paying too Much Credit Card Interest?
- Learn More About Credit Card Balance Transfers
- What to look for on your Credit Card Statement
