Compare available credit cards for incomes around the national average in Australia.
There are a number of credit cards on the market suited to many different budgets, lifestyles and income levels. Most credit cards also require applicants to meet a minimum income requirement to receive approval, something that you should consider when you're comparing your options. This guide compares credit cards that have minimum income requirements to suit average income earners in Australia.
What is the average income in Australia?
In May 2016, the Australian Bureau of Statistics (ABS) reported that the average income in Australia ranged from around $55,630 for people in the accommodation and food services industry to $135,060 for people in the mining industry.
Although there was a huge variation in income, the ABS put the average income in Australia at $78,832 for full-time adults across all industries. This marks an increase of more than 43% since 2006 and opens up a huge range of credit card options, including many premium products.
Compare credit cards for average income earners
What credit cards can I get on an average income?
A card’s minimum income eligibility requirement can help you decide which card is the best one for you. While these requirements will vary between cards, the following cards types may be suitable:
- Low or $0 annual fee credit cards. Some credit cards charge low or $0 annual fees, which can cut down on the cost of having a card.
- Low rate credit cards. These cards offer lower standard variable interest rates on purchases, which can help cut down on interest fees if you carry a monthly balance.
- Rewards credit cards. Rewards credit cards let you earn points on everyday spending, which you can redeem for rewards.
- Gold and platinum cards. These premium cards usually offer rewards programs as well as complimentary extras like travel insurance, airport lounge access and concierge services.
- Balance transfer cards. Balance transfer cards let you transfer an existing debt to your new credit card at a lower or 0% interest rate for a promotional period.
- 0% purchase cards. These cards let you enjoy 0% interest on purchases for an introductory period of time.
What else do I need to consider when comparing average income credit cards?
Keep the following features and factors in mind to help you find a credit card that suits your income and spending needs:
- Annual fee. The card’s annual fee is usually its greatest ongoing cost, outside of any interest charges. Make sure you choose a card with an affordable fee.
- Purchase rate. If you carry a balance, this is the interest rate you’ll pay for most of your card spending. The lower the rate, the more you can save on interest fees. Just remember to consider the difference between standard and promotional rates since promotional rates only last for a limited time.
- Cash advance rate. This interest rate is applicable to cash advances including ATM withdrawals, certain bill and government payments, gambling transactions and the purchase of prepaid and gift cards. It is usually much higher than the standard purchase rate for the card.
- Balance transfer rate. This is the rate you will pay if you move existing debt onto your new card. With balance transfer promotions, you can save a fair amount on interest fees during the introductory period, but you need to factor in the standard rate that will apply at the end of the promotional term.
- Fees. The fees charged by your credit card can include cash advance fees, balance transfer fees, foreign currency fees and ATM fees.
- Rewards. Some credit cards offer rewards programs that let you earn and redeem points for spending on your card. Note that you may not get the highest points earn rate with average income cards.
- Complimentary extras. These are perks that may come with your card, including travel insurance, purchase insurance, airport lounge access and concierge services.
- Credit limit. Credit limits are crucial because they determine how much you can spend with your card. Setting a responsible credit limit based on your income level and monthly budget is ideal. You may request a limit when you apply or have your card provider assign one to you.
- Other eligibility requirements. Your credit report and credit score affect your chances of getting a credit card. Make sure you check these before you apply so you can choose a card that suits your circumstances.
While credit cards can be useful tools for managing cash flow or for enjoying other perks such as rewards, they can also become a liability if you end up in debt. Carefully considering different card features and application requirements before you apply can help you choose a card that’s right for you.
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