Low income credit cards

Some credit cards in Australia have relatively low minimum income requirements of $15,000 to $25,000 per year. These cards provide people in lower-income brackets, students and retirees with access to credit and often also keep fees and charges to a minimum.

Use this guide to compare types of low-income credit cards and before applying for any card, be sure to check the minimum income requirements. We also outline the different features available and answer frequently asked questions so you can get a credit card that suits your circumstances.

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 starting at $15,000 p.a. If your annual income fits within the $15,000 and $25,000 bracket, you may be eligible for one of these cards.
• Competitive annual fee. Low income credit cards usually come with lower annual account keeping fees than more premium cards. You might even be able to find a low income card that doesn't charge ongoing annual fees 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 low income 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 debt 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 for a low income credit card?

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 requirement. Not all cards have the same minimum income requirement. While some allow applications from individuals who earn $15,000 p.a. or more, some others have requirements from $20,000 to $25,000. 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, government benefits, rental income, child support, superannuation and other types of income may also be considered.
• Earnings. If you don’t meet the minimum income requirement of any given credit card, you still have options. For instance, you could apply for a joint account and add your spouse’s income to your income as the total household earning.
• Credit history. If you have a low credit score, work on repairing it before applying. You can consider getting a temporary part-time job to increase your monthly income. Making sure you provide all the required information in your application also increases chances of approval. If you don't know your credit score, you can get it for free on Finder.
• Affordability. Before you apply for the card, make sure you've confirmed that 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.

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 (p.a.)	Balance transfer rate	Annual fee	Min credit limit	Max credit limit	Minimum Income
St.George Vertigo Card - Exclusive Offer Exclusive		0% for 14 months, reverts to 13.99% p.a.	0% p.a. for 6 months	$0 p.a. annual fee for the first year ($55 p.a. thereafter)	$500	$80,000		Finder Exclusive: Low rate card offering 0% p.a. interest on purchases for the first 14 months and on balance transfers for 6 months. Plus, a $0 first year annual fee.	Go to site More Info	Compare	loading Fetching your data...
Bank of Melbourne No Annual Fee Card		20.74% p.a.	0% p.a. for 12 months with 1% balance transfer fee	$0 p.a.	$500	$40,000		Enjoy 0% p.a. for 12 months on balance transfers, up to 55 days interest-free on purchases and no annual fee for the life of the card.	Go to site More Info	Compare	loading Fetching your data...
Bank of Melbourne Vertigo Classic		13.99% p.a.	0% p.a. for 18 months	$55 p.a.	$500	$80,000		Enjoy 0% p.a. interest for up to 18 months on balance transfers. Plus, a low annual fee and competitive purchase rate.	Go to site More Info	Compare	loading Fetching your data...
St.George Vertigo Classic		13.99% p.a.	0% p.a. for 18 months	$55 p.a.	$500			Get 0% p.a. interest for up to 18 months on balance transfers with no balance transfer fee. Plus, a low annual fee and purchase rate.	Go to site More Info	Compare	loading Fetching your data...
St.George No Annual Fee		20.74% p.a.	0% p.a. for 12 months with 1% balance transfer fee	$0 p.a.	$500	$40,000		Receive up to 55 days interest-free on purchases, a low minimum credit limit of $500 and a long-term balance transfer offer.	Go to site More Info	Compare	loading Fetching your data...
BankSA Vertigo		13.99% p.a.	0% p.a. for 18 months	$55 p.a.	$500	$80,000		Enjoy a 0% p.a. interest rate for up to 18 months on balance transfers. Plus, a low annual fee and purchase interest rate.	Go to site More Info	Compare	loading Fetching your data...
Bankwest Breeze Classic Mastercard		12.99% p.a.	0% p.a. for 26 months with 2% balance transfer fee	$39 p.a. annual fee for the first year ($79 p.a. thereafter)	$1,000		$15,000	0% interest on balance transfers for the first 26 months, with a 2% balance transfer fee. Plus, a discounted 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 p.a.	$500	$40,000		Offers a 0% p.a. for 12 months balance transfer, up to 55 days interest-free on purchases and an ongoing $0 annual fee.	Go to site More Info	Compare	loading Fetching your data...

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Frequently asked questions about low-income credit cards

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

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

• 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.

• Do I have to pay a fee for balance transfers?

  This depends on the credit card you choose. While some cards offer fee-free balance transfers, some others might require you to pay a one or two percent balance transfer fee.

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