What kind of credit card should you start with?

Your first credit card should have affordable features that make it easy for you to manage. So it's often a good idea to start with a credit card that has a low limit, low fees and a low interest rate.

What happens after you apply for a credit card?

You'll usually get confirmation of your application online or by email. Most banks and lenders offer a response within 60 seconds, but will contact you if they need more information before making a final decision.

Can I get a credit card as soon as I start working?

It's usually a good idea to wait a few months after starting a job before you apply for a credit card. This gives you time to collect payslips, which you'll need to provide for the application. It also helps show the lender that your employment is stable. But technically, you can apply for a credit card at any time when you meet the requirements. Finder's guide on credit cards for new employees has more details.

Do credit cards build credit in Australia?

A credit card adds to your credit history in Australia and is factored into your credit score. Each time you apply for a credit card, the details are listed on your credit report. Other details, including your credit limit and repayment history are also added. Finder's guide to credit scores has more details about what accounts build credit history.

How to choose a credit card for the first time in Australia?

Look for cards with no or low annual fees and low interest rates while you get used to managing a credit card , and start with a low credit limit of $500 to $1,000, so you're not tempted to overspend. Comparing cards through platforms like Finder can help you review different options and identify the right choice.

Best credit cards for first timers

A good beginner credit card keeps fees and interest rates low and offers you a manageable credit limit.
We've highlighted 3 cards that have the right mix of features for new card holders.
The key to getting value from a credit card is paying it off in full each month.

Best first time credit cards

There are Finder's pick of the best credit cards for first timers. These are all no-frills, basic cards that are a great first step. They should be easier to get approval for too.

Best low rate credit card for first timers: Westpac Low Rate Card
Best no annual fee credit card for first timers: American Express Low Rate Credit Card
Best rewards credit card for first timers: Coles No Annual Fee Mastercard

Purchase rate p.a.	Bonus points	Points per $ spent	Interest-free period	Balance transfer rate p.a.	Annual fee
Best low rate credit card for first timers
Westpac Low Rate Card	Purchase rate p.a. 13.74%	Bonus points N/A	Points per $ spent N/A	Interest-free period Up to 55 days on purchases	Balance transfer rate p.a. 0% for 20 months with 3% balance transfer fee, then 21.99%	Annual fee $84	Go to site View details Compare product selectionCompare	loading	Why we like it This card has an impressive Finder Score of 9.18 in the low rate category. The card has a low rate of 13.74% for purchases, especially impressive considering the average rate is around 20%. It also offers an interest-free period on purchases when you pay the total monthly payment balance listed on each statement by the due date, referred to as "up to 55 days days interest-free". It also has a low minimum credit limit of $500 and a $30,000 minimum income requirement. Pros $0 first-year annual fee for existing customers 0% p.a. for the first 20 months on balance transfers Low 13.74% p.a. interest rate on purchases Cons Charges a one-time 3% balance transfer fee Balance transfer reverts to the high cash advance rate of 21.99% p.a. after the introductory period
Best no annual fee credit card for first timers
American Express Low Rate Credit Card Most Loved	Purchase rate p.a. 10.99%	Bonus points N/A	Points per $ spent N/A	Interest-free period Up to 55 days on purchases	Balance transfer rate p.a. N/A	Annual fee $0	View details Compare product selectionCompare	loading	Why we like it There is no annual fee for this card at all. It also has a low purchase rate and comes with complimentary card purchase cover. Pros Low 10.99% p.a. interest rate for purchases Ongoing $0 annual fee Complimentary card purchase cover and card refund cover Cons $30 late payment fee if you miss your minimum repayment 3.5% foreign currency conversion fee No rewards program
Best rewards credit card for first timers
Coles No Annual Fee Mastercard Flybuys	Purchase rate p.a. 20.74%	Bonus points N/A	Points per $ spent 0.5	Interest-free period Up to 44 days on purchases	Balance transfer rate p.a. 0% for 12 months with 5% balance transfer fee, then 20.74%	Annual fee $0	Go to site View details Compare product selectionCompare	loading	Why we like it This card has a genuine no annual fee each year, helping you keep your credit card costs down. The card also lets you earn more Flybuys Points on your spending. It's a cheap, simple card for someone looking to spend flexibly and get more out of each grocery shop. Pros Ongoing $0 annual fee 0% p.a. on balance transfers for 12 months Earn Flybuys points for your spending Cons Charges a 5% balance transfer fee Flybuys points earn rate is low at the equivalent of 0.5 points per $1 spent, up to $5,000 in each statement period. 3% foreign transaction fee

Methodology: How we chose these cards

To determine Finder's pick of first credit cards, we examine over 250 cards in our database. We narrow it down to cards with annual fees under $100 and minimum credit limits under $3,000. We also consider whether or not the cards are available through Finder. The other key factors we consider are:

The interest rate for purchases
The terms for interest-free days on purchases
Rewards or other features

Keep in mind: Our top picks may not always be best for you. Based on your situation, you may find certain features to be more or less important, so compare your options before you apply.

Pros and cons of getting your first credit card

Pros

Financial flexibility. A credit card gives you a way to buy what you need, then repay it over time. This can help if you have a lot of purchases in a short amount of time, unexpected costs between paydays, or something else.
Establish credit history. If you've never had a credit card or loan in your name, a credit card can help establish your history. And when you repay it on time, it helps build up a good credit score that can help you get access to better credit cards and loans.
Additional features. Even entry-level credit cards may offer extras such as complimentary insurance for purchases, rewards and fraud protection.

Cons

Temptation to spend. Having access to extra funds can make it tempting to make purchases you wouldn't normally be able to afford, which increases the risk of debt. If your first card also earns rewards, the incentive to spend more could be even greater (and riskier).
Interest charges. Credit card interest rates range from around 8% to 27% for purchases. So unless you can make use of an interest-free purchase period, the cost can really add up.
Account fees. While there are some credit cards that have no annual fees ever, a lot charge account fees that can add anything from $25 to $450 or more to the cost. It's important to weigh this cost against your reasons for wanting a credit card to decide if it's worth it.

Our expert says: How to stay on top of your new credit card payments

"Put a monthly reminder in your calendar to check your credit card statement. You should always aim to pay off the full amount you've spent each month if you're able to. If you can't do this, pay off what you can and make a plan to pay it off in full as soon as possible. Another important tip: don't withdraw cash using your credit card. The cash advance rate is high and you get charged interest immediately."

Richard Whitten

Senior Money Editor

How find the best first credit card

Your first credit card should have low costs that help you avoid debt when you're getting used to it. Ideally, it should also include features that you want.

With that in mind, here are some key features to consider when comparing credit cards as a first-timer.

Interest rate

The purchase rate is the interest rate that applies to most of the things you'll pay for with a credit card.

A low purchase rate (between 8% and 15%) is ideal when you're starting out with a credit card, as it helps keep potential interest costs down. Especially when some cards have rates around 27% for purchases.
I've paid no credit card interest for 11 years – here's how I do it

The cash advance rate is charged when you use a credit card to withdraw cash from an ATM, pay for gambling or other cash advance transactions. It can be almost 30% on some credit cards, so avoid cash advances as much as possible when you get your first card.

Annual fees

Getting a low or no annual fee on your first credit card means you can test it out without paying a huge amount for the account. Under $100 is good.

Annual fees of around $300 - $400 are usually for higher end frequent flyer cards.

Credit limits

A low credit limit is easier to manage and helps you avoid debt. So, credit cards with minimum credit limits of around $500 to $3,000 can be a good place to start.

Just keep in mind that the credit card company determines the actual credit limit you're offered (based on your application). But you can request the minimum credit limit, either when you apply or after you get approved.

Eligibility criteria

Every credit card has a set of requirements you need to meet before you can apply, which usually covers:

Income. You need to have a regular source of income, which can include employment, self-employment or pension payments depending on the card. Some cards also have minimum income requirements (e.g. $30,000 per year).
Credit score. Banks and other financial institutions check your credit report when you apply for a credit card, and ideally there shouldn't be any history of late payments, defaulted accounts or bankruptcy. If you don't have anything on your credit report, aim to provide as much supporting documentation as possible.
Age. You need to be at least 18 years of age to get a credit card in Australia.

Extra features

It can be easier to get used to a credit card that just has the basics. But you can factor in a particular feature that you want.

For example, if rewards are the main reason you want a credit card, have a plan for repayments and decide if the value you'll get from rewards is worth the card's costs.

Wondering if you'll get approved?

19% of Australians say they've put off applying for credit due to fear of rejection. Getting a low rate card with a low credit limit increases your chances of approval. Often your current can approve you for a simple credit card quickly because it already knows a lot about your saving and spending habits.

Alternatives to credit cards

Personal loans. A personal loan lets you borrow a fixed amount of money and repay it over a fixed period of time. After that, the loan account is closed. This can be helpful if you want to pay for a holiday, wedding or other big expenses. If you make all the repayments on time, it also helps build up good credit history.
Buy now pay later. Afterpay and other BNPL accounts let you buy what you want with partnered stores, then repay it in installments. There are usually account fees and, similar to credit cards, you can use the account for as long as you want if you meet the repayment responsibilities. BNPL doesn't usually add to your credit report, but could help you get used to paying off purchases over time.
Debit cards with rewards. If you want extra value from your spending, there are some debit cards in Australia that offer rewards such as cashback or points. They don't typically offer as much value as a similar credit card, but it may be more affordable if that's your main goal.

Frequently asked questions

It's usually a good idea to wait a few months after starting a job before you apply for a credit card. This gives you time to collect payslips, which you'll need to provide for the application. It also helps show the lender that your employment is stable.
But technically, you can apply for a credit card at any time when you meet the requirements. Finder's guide on credit cards for new employees has more details.
A credit card adds to your credit history in Australia and is factored into your credit score. Each time you apply for a credit card, the details are listed on your credit report. Other details, including your credit limit and repayment history are also added. Finder's guide to credit scores has more details about what accounts build credit history.

Sources

Thank you for your feedback!

To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten as part of our fact-checking process.

Written by

Amy Bradney-George

Journalist

Amy is an experienced journalist with over 16 years of experience, contributing to major publications like Money Magazine, The Sydney Morning Herald, and ABC News Australia. Specialising in personal finance, she frequently appeared in media outlets and on radio. Amy holds a Bachelor of Arts in Journalism and Drama from Griffith University and earned RG146 certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, ensuring her expertise is grounded in current financial regulations. Amy was Finder's Senior Writer for Credit Cards from 2016 to 2024. See full bio

Amy's expertise

Amy has written 471 Finder guides across topics including:

Credit cards
Frequent flyer
Credit score
BNPL
Money management
Sustainability

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Best credit cards for first timers

Credit card beginners usually start with a simple low rate, low fee card with a low credit limit that should keep you out of trouble. Here are some of our favourites.