Credit cards for people on Centrelink benefits
You need to be earning around $30,000 minimum to get a credit card. But Centrelink payments can count as part of that income for many banks.
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How we picked theseDo you need immediate help?
- If you want to speak to someone at Centrelink, call the employment services line on 132 850 or visit the Services Australia contact page for other support numbers.
- If you want to speak to someone about financial hardship, call the National Debt Helpline on 1800 007 007 or use the online chat service.
- If you need assistance with a no-interest loan, reach out to Good Shepherd to see if you're eligible. You could receive up to $2,000 to cover essential expenses or $3,000 for housing expenses.
Can I apply for a credit card if I’m receiving government assistance?
You need some form of regular income to get a credit card. This income could come from a mix of part-time or casual work and Centrelink payments.
But only some banks and credit card companies accept Centrelink payments as part of this income.
Eligible Centrelink payments can include:
- Austudy
- Carer's allowance
- Child support payments
- Child care benefits
- Centrelink long-term pensions
- Parenting payments
- Foster care allowance
- Family tax benefit A and B
Getting an application approved also depends on other factors, including your employment status, your credit history, expenses and other debts.
Which credit card companies accept Centrelink payments as income?
- Commonwealth Bank. CBA accepts most Centrelink benefit payments listed above, provided you can provide 3 months' worth of bank statements or transactions listing Centrelink payments.
- Westpac. According to Westpac's acceptable income documents for a credit card, government benefits and allowances can be accepted as income if you provide a letter from a government authority covering the last 2 months of income, or a Centrelink online statement showing your last 4 benefit payments.
- NAB. The bank says you can verify government allowances or child support payments via bank statements.
- ANZ. You will need bank statements showing Centrelink benefit payments over a consecutive 3 month period and a letter or statement from Centrelink.
Not sure if you're eligible? Contact the card provider
It's impossible to know if you'll get a credit card application approved until you submit one. And getting rejected can temporarily hurt your credit score.
So it's a good idea to call a bank or card provider before applying and asking specifically about your situation and the Centrelink benefits you receive.
How do I apply for a credit card if I have more than one source of income?
If you receive income from a few sources – such as child support payments, Family tax benefit A or B and a casual job – you should include details for all of them when you apply for a credit card.
Every card provider has a different application form, but you list your main source of income (such as a casual or part-time job) when asked to nominate your income. And if you receive a parenting payment from Centrelink you would list that under additional sources of income.
You'll probably need to provide documents to establish each source of income. This includes payslips or bank statements.
How can I increase my chances of credit card approval if I'm on Centrelink?
- Find a suitable card. If you have a low income, your best bet is something like a low rate credit card. These often have credit limits as low as $1,000.
- Check the eligibility requirements before applying. You need to be 18 or over, and there are also requirements like residency and minimum income. Minimum income requirements for credit cards can start from around $30,000, according to Finder's credit cards database. But a lot of banks don't state a minimum income anymore.
- Get your documents together. You'll be asked to provide proof of identification (such as your driver's licence or passport) and proof of income. This may include recent pay slips, bank statements and documents from Centrelink.
- Only apply for one card at a time. Every credit card application you make is listed on your credit report. Applying for too many credit cards in a short period of time can lower your credit score. So, aim to only apply for one card at a time. If your application is rejected, spend some time (usually at least 6 months) improving your credit score before you apply for another one.
- Check your credit score. You usually need to have a good credit score to get a credit card. Check your credit score for free through Finder.
Did you know?
Even if you're applying for a credit card that accepts proof of some Centrelink payments, including another source of income (such as pay from a casual job) can improve your chances of getting approved for a card.
What kind of credit card can I get?
Different types of credit cards can suit different needs. For instance:
- If you receive a relatively low income, consider a card with low minimum income requirements and a low minimum credit limit.
- If you'll only use a card for emergencies, a card with $0 annual fee won't burn a hole in your pocket while you're not using it.
- If you think you might not pay off the balance in full each month, consider a card with a low interest rate for purchases.
Our expert says: The easiest credit cards to get approval for
"Most banks offer a low rate credit card. These cards have purchase rates of around 15% or lower, annual fees under $100 and often have credit limits as low as $500 or $1,000. These are easier cards to get approved for, and are worth considering if you're on a low income. But you still need regular income and a good credit score too."
Alternatives to a credit card when you're on Centrelink
It can be difficult to get approved for a credit card when your main source of income is from JobSeeker or another Centrelink payment. But if you need access to funds, some other options to consider include:
- Personal loans. There are some personal loans with low income requirements. But as they may have higher interest rates and fees than other loans, make sure you consider the costs and compare options before deciding to apply.
- No interest loans. No Interest Loans (NILs) offer up to $3,000 for people who earn less than $70,000 (or $100,000 as a couple). These loans are administered by Good Shepherd and are available through a range of non-profit community organisations around Australia.
- Centrelink advance payment. You can ask for a one-off or regular advance from Centrelink when you're recieving an eligible payment, including JobSeeker, Family Tax Benefit A, Age Pension, Carer Payment and Austudy. You can check if you're eligible and apply through MyGov, the Express Plus app, in a service centre or by calling 136 240.
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I am currently off work due to an accident and hope to resume work soon. Unfortunately during this period, I have racked up some debt on 2 credit cards. I would ideally like to combine the debt onto 1 no interest, low fee card or get a personal loan. Do you think this may be possible?
Hi Paula,
You will need to be able to demonstrate a capacity to repay the loan. Once you resume work, you should be in a better position to get a 0% interest transfer deal on a credit card, but while you’re receiving Centrelink it may be a little trickier. Another option is to call your credit card provider/s and ask them if they can move you to a different credit card with a lower interest rate? You may also want to reach out to the National Debt Helpline; they offer free and confidential financial counselling. Best of luck!
I’m currently receiving jobseeker (long term but actively looking for work) to better my position financially as well just hasn’t come through as yet for me. I also received tax an and b benefits what’s my best chance Le my credit score is stable at 599. But to better it they suggest a credit card. I’d just like $1000 “emergency fund” then to better my rating as well. Any advise… suggestions for which card etc please thx
Hi Justine,
You can compare credit cards and view different types of benefits accepted by Australian credit card issuers in this guide. But it can be difficult to get a credit card without an additional form of income, such as a casual job. Some lenders also specify that JobSeeker isn’t accepted. So, if you compare and find a credit card you want to apply for, you could call the bank or lender to discuss your eligibility directly. In regards to credit scores, Finder also has a guide on how to improve your credit score that may offer you some other options. I hope this helps.
Hi Sandra,
Thank you for your inquiry.
It’s possible as some credit card issuers would accept Centrelink payments as part of your income. However, they would still consider other personal factors such as your credit history and your other sources of income.
You may refer to the table on this page for the accepted government assistance payments for each bank/institution.
I hope this helps.
Best,
Maria
Hi,
I am almost finished paying off a part 9 debt agreement (one payment left!) I’m a single mother on parenting payment. My taxable income is approx $19,000. I want a credit card with a low limit just for emergencies for eg if my car needs repairs. Is there any chance of me being approved for a credit card? Or will my credit rating be affected forever because of the part 9 agreement?
Thank you.
I’m a single mum with 2 babies who has been left with bad credit and have to start from scratch. I’m trying to get back on my feet but I need help and my daughters 3 birthday is around the corner. I’m looking for anything that can help me get through and something I can use for back up
Hi Sarah,
Thanks for your inquiry.
Sorry to hear about your situation. If you are receiving Centrelink payments, you may apply from the lenders who accepts loan application for people receiving Centrelink payments or receiving a low income. These include loans from short-term lenders, banks, and credit unions. You can also avail of Government and community financial assistance schemes.
Please ensure to read through the relevant product disclosure statement and terms and conditions of the loan to ensure that you got everything covered before you apply.
I hope this helps.
Cheers,
Debbie