Student credit cards – basic cards for low income students
There are no specific credit cards for students, but we've got a table full of low rate credit cards aimed at borrowers with lower incomes (like students!).
No dedicated student credit cards exist. Instead, seek low rate, low fee options suitable for modest incomes.
Pay your balance in full each month to avoid average purchase interest rates, typically 13-28% and build good credit.
You must be over 18 with a regular income, including Centrelink or part-time wages, to apply.
Can students in Australia get credit cards?
Yes. To get a credit card in Australia you need to be over 18 and have regular income.
There are no credit cards designed specifically for students. But if you're working part-time while studying and aren't earning much, you probably want a low rate, low-fee credit card with a low credit limit (around $1,000 or $2,000, for example).
This kind of card can help you spend money when you need it without getting into too much debt.
Student credit cards 101
When you apply for a credit card, the bank or card company examines your income, spending, debts and credit score.
If you get approved, your card will have a credit limit. This is the total amount you can spend on the card.
The money you spend on your credit card is called your balance. You have to pay the balance off eventually.
Each month when you get your credit card statement (the record of your card spending and total balance) you can choose to pay off:
The total balance. This way you can avoid interest charges and stay out of debt.
The minimum repayment. This is around 2-3% of your balance. You have to pay this. You'll get charged interest on the rest of the balance.
A partial repayment. You can also choose to pay off any amount that's greater than the minimum repayment but less than the total balance.
Most credit cards charge an annual fee. Low rate cards tend to have the lowest annual fees (around $100 or less).
Our expert says
"Don’t be like me as a student. I grabbed my first credit card and racked up a $2,000 bill that I couldn’t pay back. I learned my lesson early, which is to make sure you can pay off your spending in full every month before you experiment with credit cards. Once you can, however, they can offer great value back on your spending."
Flexibility. If you have lots of bills or purchases to make in a short amount of time, you could use a credit card and then pay them off over time. If you repay the card each month, it could even be interest-free.
Low fees. Most credit cards suited to students have low annual fees or monthly fees to help keep account costs down.
Credit history. You can use a credit card to establish your credit history. If you use the card responsibly and make repayments on time, it can help increase your credit score and chance of approval for other cards or loans.
Cons
Temptation to spend. If you spend more than you can afford to repay on a credit card, your card debt can quickly become expensive.
Interest charges. Credit card interest rates range from around 8% to 27% for purchases. While most cards offer an interest-free period for purchases if you repay the total amount on every statement, the cost of interest can quickly add up if you don't pay it all off.
Sneaky extra charges. Some businesses add a fee to credit card payments, which can add 1-2% to what you spend.
Our expert says: Credit cards are not free money!
"Your late teens and early 20s is the peak age for getting into big credit card (or buy now, pay later) debt. A credit card is not free money. It's expensive money. If you don't pay off your balance each month. But if you do, a credit card is pretty useful. It lets you manage your spending while you're at TAFE or uni and build up good credit history."
Trying to choose between a credit card and buy now pay later? Finder's guide to Afterpay vs. credit cards has a side-by-side comparison for different accounts.
What features can I get with a credit card?
Interest-free days. Most credit cards offer an interest-free period for purchases, such as "up to 55 days" if you pay the total amount listed on your statement by the due date. This gives you a way to avoid being charged interest on your shopping.
Instalment plans. A lot of credit cards offer instalment plans for purchases or part of your balance, similar to buy now pay later plans. For example, if you bought a $2,000 laptop, you could pay it off in monthly instalments over 6 months and would know exactly how much each payment needed to be.
Digital wallets and virtual cards. Most major banks and brands offer credit cards you can add to Apple Pay, Google Pay, Samsung Pay and other digital wallets.
Complimentary extras. Some student credit cards come with extras like complimentary purchase protection insurance and extended warranties for eligible items, which could be handy if you buy a new laptop or other study gear.
Security features. Credit cards offer security services like instant card-locking and Mastercard or Visa zero liability protection.
How much do student credit cards cost?
When figuring out the cost of a credit card, look at the annual fee first. This is one cost you can't avoid (unless you get a no annual fee card).
But most other costs only come up in certain situations. The interest rate on spending (the purchase rate) only matters if you don't pay your balance in full. The cash advance rate applies if you withdraw cash from your credit card (something you should avoid) or use the card for gambling or money transfers. Foreign transaction fees apply if you're spending money overseas or online from merchants based outside Australia.
How to apply for a student credit card
After finding a suitable credit card, the next step is applying and an application online should take 10-15 minutes.
Common eligibility requirements
Are you at least 18 years old? You need to be over 18 years old to apply for any credit card in Australia. If you are under 18 you could use a debit card instead.
What is your residency status? Credit card companies generally prefer you to be an Australian citizen or a permanent resident.
Are you an international student? Some banks don't offer credit cards to temporary residents on student visas. Some will approve cards for people on work visas as long as their visas are valid for more than 12 months.
How much money do you earn? You must have enough income to manage repayments for at least the minimum credit limit that's available on a card. Income can include Centrelink payments and your wages from part-time work.
What's on your credit report? If a credit card is the first credit product you apply for, you usually won't have any listings on your credit report. But the bank or credit provider will check your credit history and add a listing when you apply.
Documents and information you'll need to provide
Personal information. This includes your full name, date of birth, residential address, email address and phone number. You'll also need to provide a form of identification, such as your driver's licence or passport.
Student information. You may be asked to include details of the university, TAFE or other institution you're studying at and the course you're enrolled in.
Employment and income information. You'll need to provide details of your employer and income, such as contact details and recent payslips. If you earn income from other sources, such as Centrelink payments, you can include these as part of your application.
Other financial information. Details of any assets and debts that you have, including savings accounts or other loans. You will also be asked to estimate your monthly spending as well.
Tips for using a student credit card
Only use your credit card for essential items. If you want to buy something but don't need it straight away, consider saving up for it instead. Keeping your credit card at home, not adding it to your digital wallet and saving it for textbooks, groceries and emergencies is a good way to curb the temptation to spend.
Stick to a budget. You should create a realistic budget that accounts for your necessary expenses (school supplies, bills, groceries), but also leave room for any emergencies expenses you may have. If you stick to this, you'll know to set aside money from your savings each month to pay off your credit card in full.
Aim to pay your balance off in full every month. Although you're only required to pay the minimum payment each month, doing this could land you with high interest costs and an unmanageable debt. Instead, you should aim to pay off your balance in full each month.
Frequently asked questions
Most student credit cards are designed as low-cost options and don't come with a rewards program. But if you're interested in earning rewards for your spending, you can compare student credit cards and rewards credit cards to see which type of card suits your needs. You may also want to consider a debit card with rewards debit or a prepaid travel card that earns points.
Not making payments on your student credit card will cause your debt to increase very quickly. Interest will be charged on the balance and you may also be charged a late payment fee of around $10 to $30. If you continue to carry a balance on the card, you will be charged interest on the entire balance (including the late payment fee and interest charges). It could also negatively affect your credit report. Always aim to pay at least the minimum off your card by the due date on your statement and contact your issuer to discuss your circumstances if you're struggling to meet these payments.
If you don't continue to make payments on your Australian credit card, the consequences could include:
Additional fees and interest on your Australian credit card, increasing the total amount of your debt.
Late payment or default listings on your Australian credit report. This may make it harder for you to obtain credit if you return to Australia in the future.
Your credit card debt may be passed on to debt collectors. While most debt collectors in Australia operate nationally, there are some international debt collectors that could attempt to recover the debt when you live overseas.
The credit card provider may take legal action, which could include suing you for the amount owed or having you declared bankrupt.
Earning points for university fee payments is often tricky because it depends on your card and how you make the payment. For example, BPAY is a common option for paying university fees but isn't usually an eligible transaction for earning credit card points.
Generally, your best bet for earning points for university fees is to pay by card on campus or through an online payment system like ANZ eGate or CommBank BPOINT. It still depends on how the payment is processed, because it could go through as a purchase or a bill payment. But if it's processed as a purchase, you'll get points in the same way you would for your everyday shopping.
As university fees can be worth thousands of dollars, you could start by trying to make a partial payment with your credit card. Then you can check how it shows up on your credit card account. If it's a purchase and you earn points, you could pay the rest on your card, But if it's not, you could look at other payment options.
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.
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Bad credit history can make it difficult to get approved for a credit card but you do have other options. Repairing or improving your credit score is not a quick and easy process. It may take a significant amount of time and require a long period of financial responsibility on your part. You may find this guide useful to improve your credit score.
Hi, I’m a 2nd year full-time mature student. I’ve never owned a credit card and I’m also on the DSP guaranteed for the duration of my degree (another two 1/2 years). My fixed income is about $23,000 per annum, what are my chances of qualifying?
Finder
MarcMarch 25, 2013Finder
Hello Sudi,
Each card issuer has their own eligibility criteria, so it may be helpful to contact the provider of a card you’re interested in to enquire and find out more about what your chances are. Also, to complete an online application for any of these credit cards you’ll need to specify the names of your employer and other relevant details, so if this can’t be done, you may need to enquire and apply in person or over the phone.
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What options do you have with bad credit history?
Hi Naomi,
Thanks for your inquiry.
Bad credit history can make it difficult to get approved for a credit card but you do have other options. Repairing or improving your credit score is not a quick and easy process. It may take a significant amount of time and require a long period of financial responsibility on your part. You may find this guide useful to improve your credit score.
You may also wish to refer to a guide on how you can repair your credit rating.
I hope this helps.
Cheers,
Jacob
Hi, I’m a 2nd year full-time mature student. I’ve never owned a credit card and I’m also on the DSP guaranteed for the duration of my degree (another two 1/2 years). My fixed income is about $23,000 per annum, what are my chances of qualifying?
Hello Sudi,
Each card issuer has their own eligibility criteria, so it may be helpful to contact the provider of a card you’re interested in to enquire and find out more about what your chances are. Also, to complete an online application for any of these credit cards you’ll need to specify the names of your employer and other relevant details, so if this can’t be done, you may need to enquire and apply in person or over the phone.
I hope this helps,
Marc.