I've started writing this review half a dozen times and just can't quite settle on a tone. Do I like the Commonwealth Student Card? Yes, I suppose. It's better than the Westpac Student Visa and offers some good features, but it still has those same patronizing characteristics that all major-bank student cards seem to have. The following line from the Commonwealth website sums it up:
"When [...] you want to purchase tickets online to see your favourite band, a Student credit card can come in handy."
That's how the Commonwealth Bank sees their student customers: as a Gen Y caricature.
Most students I know have real expenses and real jobs. They pay rent (and sometimes mortgages), they have cars, they have bills and they travel overseas. More importantly, they have income. They may only work 30 hours a week, but it's usually at casual rates.
Gone are the days where 'student' was a synonym for 'impoverished', but the prejudices of major financial institutions have yet to catch up.
Like the Westpac Student Visa, my major criticism of the Student Card is its low credit limit. Their website states they offer credit limits "from $400", but doesn't state any upper limit. Most third-party credit card information sites state the credit limit as just $400.
If the maximum credit limit is $400, it's almost useless. It would be easier to obtain an overdraft on a transaction account or, if you receive Youth Allowance, a cash advance of $500.
To be eligible, you must also have an existing Streamline account with Student Options.
If a $400 credit limit is sufficient for you, then this card does have some great features. It offers 55 days interest free on purchases, no annual fee and a balance transfer option of 4.99% p.a. for 9 months (who needs a balance transfer on a student credit card? What would you be transferring from?).
The interest rate is high (19.74 % p.a. on purchases and 21.24% p.a. on cash advances), however on a $400 credit limit, the most interest you could accumulate on purchases is $6.58 per month.
Bottom line: consider other financial options like overdrafts and cash advances first. If the $400 credit limit is sufficient for your needs, the Commonwealth Student Card is a very good option. The combination of interest free days and no annual fee means it can even be cost-neutral.
