Low income credit cards

Some credit cards in Australia have relatively low minimum income requirements of $15,000 to $35,000 per year. These cards provide people in lower-income brackets, students and pensioners with access to credit. They usually offer competitive rates and fees to help keep your account costs down.

If you want a credit card and have a lower income, you can use this guide to compare types of low-income credit cards that may be suitable. Before applying for any card, be sure to check the minimum income requirements and other eligibility criteria.

What are the features and benefits of a low income credit card?

• Lower minimum income requirements. As the name suggests, low income credit cards usually have lower minimum income requirements between $15,000 and $35,000 per year. You'll need to provide proof of your income with recent payslips and bank statements. You may also need to confirm your place of employment and provide your employer's contact details (when relevant to your circumstances).
• Competitive annual fee. Low income credit cards usually charge lower annual account keeping fees than more premium cards. You might even be able to find a card that doesn't charge an ongoing annual fee or has a $0 annual fee promotional offer.
• Lower interest rates. Some low income cards also double as low rate cards. This means you could get a card that charges a purchase rate of less than 13% p.a. Look out for low income cards with low or 0% promotional interest rates as well.
• Interest-free days. Most credit cards offer interest-free days on purchases, though the number of days (such as up to 55 days) would vary from card to card. To take advantage of these interest-free days, you have to pay your account’s closing balance completely every month.
• No frills features. Most low-income credit cards don't offer expensive extras like rewards, concierge services, travel perks and included insurance covers.
• Build credit. If you're using a low income credit card with low interest rates, you could use the card to build up a healthy credit score if you pay off your balance each statement period. With good creditworthiness, you'll have increased chances of approval when applying for other loans in the future.

What should I consider when comparing low income credit cards?

If you want to apply for a low income credit card, here are the key factors to consider when you're weighing up your options.

• Minimum income requirements. Not all cards have the same minimum income requirement. While some allow applications from individuals who earn at least $15,000 p.a., others have requirements of $25,000 or more. Keep in mind that your income is assessed against your expenses. So if you meet the minimum income, but your expenses are too high in relation, your application may still be declined.
• Source of income. Most lenders will require that you report at least one source of income on your application. If you are unemployed or do not earn a regular salary, other types of income may be considered. Depending on the provider and the card, this could include government benefits and Centrelink payments, child support, superannuation, rental income and other types of income specified by the provider. These requirements vary between providers, so it's a good idea to check the eligibility criteria and contact the bank directly if you have questions about your income and eligibility.
• Credit history. If you have a low credit score, work on repairing it before applying. Making sure you provide all the required information in your application also increases chances of approval.
• Affordability. Before you apply for the card, make sure you can afford it. If you end up borrowing more than you can repay and get into unmanageable debt, this will have a negative impact on your credit rating. Use the reviews on Finder and read the relevant product disclosure statement to make sure you understand the costs of the card before applying.

What happens if I can't pay my credit card bill?

How can I apply for a low income credit card?

If you've compared your options and found a credit card that suits your needs, you can apply online in around 10–20 minutes. Before you get started, make sure you meet the other eligibility requirements. As well as the minimum income, this includes being over 18 years old and meeting the Australian residency status requirements listed for the card.

Details you'll need for the application

When you apply for a credit card, you need to share information about your personal and financial circumstances. While each application is different in structure, here is a rundown the key information you'll be asked for:

• Personal details. This includes your full name, date of birth and residential address and living arrangements. If you've only lived at your current address for a few years, you may need to provide details of your previous address as well.
• Identification. You'll be asked for your driver's licence number, or another form of ID such as your passport or Medicare card number. This helps confirm your identity and also makes it possible for the credit card provider to request access to your credit file.
• Employment information. This includes your salary, role, length of employment and your employer's contact details. You may also be asked for recent payslips to confirm these details. If you're self-employed or retired, you may be asked for details such as your latest Tax Assessment Notice, income from government benefits, superannuation or contact details for your accountant.
• Financial information. As well as your main source of income, you'll be asked about any additional money you've earned. This includes interest from any savings accounts, as well as other assets such as shares or property. You'll also need to give details of any existing debts (including loans and other credit cards) and monthly household expenses.

Depending on the credit card provider, you may be asked for more details once the application is submitted. This could include supporting documentation such as payslips, bank statements and copies of your identification.

Compare cards with a low minimum credit limit

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Name	Product	Purchase rate	Balance transfer rate	Annual fee	Min credit limit	Max credit limit	Minimum income
St.George Vertigo Classic		0% for 7 months, reverts to 13.99% p.a.	0% p.a. for 22 months with 1.5% balance transfer fee	$0 annual fee for the first year ($55 p.a. thereafter)	$500	$80,000		Get 0% p.a. promotional purchase and balance transfer rates and save with a first-year annual fee waiver.	Go to site More Info	Compare	loading Fetching your data...
Westpac Low Rate Card		13.74% p.a.	0% p.a. for 20 months with 1% balance transfer fee	$59	$1,000	$25,000	$15,000	A low rate card offering 0% p.a. interest on balance transfers for the first 20 months and a $200 cashback offer.	Go to site More Info	Compare	loading Fetching your data...
Bankwest Breeze Classic Mastercard		0% for 15 months, reverts to 10.99% p.a.	2.99% p.a. for 9 months	$49	$1,000		$15,000	Save with an introductory rate of 0% p.a on purchases for 15 months and 2.99% p.a. on balance transfers for 9 months.	Go to site More Info	Compare	loading Fetching your data...
Coles No Annual Fee Mastercard - Exclusive Offer		0% for 12 months, reverts to 19.99% p.a.	0% p.a. for 12 months	$0	$2,000		$25,000	Finder Exclusive. Ends 29 October 2020 Save on new and existing interest charges with 0% interest on both balance transfers and purchases for the first 12 months.	Go to site More Info	Compare	loading Fetching your data...
NAB Low Rate Credit Card		12.99% p.a.	0% p.a. for 20 months with 2% balance transfer fee	$59	$1,000	$30,000		Get a 0% p.a. interest rate for 20 months on balance transfers, Visa Offers + Perks and a competitive $59 ongoing annual fee.	Go to site More Info	Compare	loading Fetching your data...
Bendigo Bank Low Rate Credit Card		0% for 15 months, reverts to 11.99% p.a.	13.99% p.a.	$45	$500			Get 0% p.a. interest on purchases for 15 months and a $150 Woolworths Supermarket gift card when you spend $1,000 in the first 90 days.	Go to site More Info	Compare	loading Fetching your data...
Bank of Melbourne Vertigo Classic		0% for 7 months, reverts to 13.99% p.a.	0% p.a. for 22 months with 1.5% balance transfer fee	$0 annual fee for the first year ($55 p.a. thereafter)	$500	$80,000		Save with 0% p.a. for 7 months on purchases, 0% p.a. interest for 22 months on balance transfers and a $0 first-year annual fee.	Go to site More Info	Compare	loading Fetching your data...
Coles Rewards Mastercard - Exclusive Offer		19.99% p.a.	0% p.a. for 18 months with 1.5% balance transfer fee	$0 annual fee for the first year ($99 p.a. thereafter)	$2,000		$25,000	Finder Exclusive. Ends 29 October 2020 Save with $100 off a Coles Supermarket shop and a $0 first-year annual fee. Plus, 0% p.a. on balance transfers for 18 months (1.5% fee applies).	Go to site More Info	Compare	loading Fetching your data...
BankSA Vertigo		0% for 7 months, reverts to 13.99% p.a.	0% p.a. for 22 months with 1.5% balance transfer fee	$0 annual fee for the first year ($55 p.a. thereafter)	$500	$80,000		Enjoy a 0% p.a. for up to 22 months on balance transfers and up to 7 months on purchases. Plus, $0 first-year annual fee.	Go to site More Info	Compare	loading Fetching your data...
BankSA No Annual Fee		20.74% p.a.	0% p.a. for 12 months with 1% balance transfer fee	$0	$500	$40,000		Offers 0% p.a. on balance transfers for 12 months, up to 55 days interest-free on purchases and an ongoing $0 annual fee.	Go to site More Info	Compare	loading Fetching your data...
ANZ Low Rate		12.49% p.a.	0% p.a. for 25 months with 1.5% balance transfer fee	$0 annual fee for the first year ($58 p.a. thereafter)	$1,000			Save with 0% p.a on balance transfers for 25 months (with a 1.5% BT fee) and $0 first year annual fee. Plus a 12.49% p.a. purchase interest rate.	Go to site More Info	Compare	loading Fetching your data...

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Frequently asked questions

• What eligibility criteria do I have to meet to apply?

  Apart from meeting minimum income requirements, you should be at least 18 years old, an Australian resident and have a healthy credit history.

• Can I apply for a credit card if I'm unemployed?

  You usually need to receive a regular income to be approved for a credit card. Some credit card providers will consider applications when you receive payments from Centrelink, including JobSeeker (formerly Austudy) or Carer's Allowance, while others may require you to be employed by a business.

  If you're retired, you may be able to apply for a credit card if you can provide evidence of an income through assets, savings and superannuation. Check the eligibility criteria for individual cards or contact a provider directly if you have questions about your circumstances.

• How quickly can I complete the application?

  Most online credit card applications take around 10 to 15 minutes to complete. This may vary between providers and could take longer if you don't have the necessary information prepared before starting the application.

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