For low income earners, finding a credit card can feel like an uphill battle. However, you shouldn’t feel priced out, as there are a range of credit cards with income minimums as low as $15,000.
Low income credit card options for pensioners, unemployed or Centerlink
View credit cards with eligibility criteria that suits low income Australians. Compare credit cards across the market, including rates and fees, to find an option you may be eligible for.
Purchase Rate
Interest Free Days
Annual Fee
Late Payment Fee
Purchase Rate
20.74%
p.a
Interest Free Days
55
Annual Fee
$178
$30
Go to site
Purchase Rate
Interest Free Days
Annual Fee
Late Payment Fee
Purchase Rate
11.99%
p.a
Interest Free Days
55
Annual Fee
$0
$8
Go to site
Purchase Rate
Interest Free Days
Annual Fee
Late Payment Fee
Purchase Rate
10.49%
p.a
Interest Free Days
55
Annual Fee
$30
$25
Go to site
Purchase Rate
Interest Free Days
Annual Fee
Late Payment Fee
Purchase Rate
20.50%
p.a
Interest Free Days
55
Annual Fee
$120
$30
Go to site
Purchase Rate
Interest Free Days
Annual Fee
Late Payment Fee
Purchase Rate
20.74%
p.a
Interest Free Days
55
Annual Fee
$99
for 12 months then $129 thereafter
$30
Go to site
Purchase Rate
Interest Free Days
Annual Fee
Late Payment Fee
Purchase Rate
12.74%
p.a
Interest Free Days
Annual Fee
$55
$30
Go to site
Purchase Rate
Interest Free Days
Annual Fee
Late Payment Fee
Purchase Rate
20.74%
p.a
Interest Free Days
55
Annual Fee
$64
for 12 months then $129 thereafter
$30
Go to site
Purchase Rate
Interest Free Days
Annual Fee
Late Payment Fee
Purchase Rate
20.74%
p.a
Interest Free Days
55
Annual Fee
$0
for 12 months then $129 thereafter
$30
Go to site
Purchase Rate
Interest Free Days
Annual Fee
Late Payment Fee
Purchase Rate
0.00%
p.a
for up to 12 months, then 18.99%
Interest Free Days
55
Annual Fee
$0
$30
Go to site
What are low income credit cards?
Many Australian credit card providers have minimum income thresholds of $30,000 to $40,000 annually. Low income credit cards, as the name suggests, have lower minimum income levels within their eligibility criteria. They are usually between $15,000 to $20,000. This is around $288-$384 a week.
They typically won’t have all the bells and whistles of credit cards for higher income earners. But they may allow Australians with lower incomes, such as those employed part time or casually, to obtain a basic credit card.
Can I get a credit card with no income?
You’ll be hard-pressed to find a provider who’d give someone with no income a credit card. Minimum annual income requirements are put in place by credit card providers to ensure card holders can manage their repayments.
It may seem unfair, but it’s for your own benefit. Risk-based lending helps to prevent Australians from easily falling into debt.
How do I get approved for a low income credit card?
To improve your chance of approval for a low income credit card, consider the following:
Start a savings nest egg: Credit card providers may be looking for stability in your finances if you have a low income. If you can consistently put money into your savings each income cycle, you’ll show that you have an effective budget and that you have self-control.
Make regular debt payments: If you have existing debt, consider paying this off before applying for a low income credit card. This will demonstrate a level of reliability with your finances. It may improve your chances of getting credit card approval as well as increase your credit rating.
Check the minimum income requirements: Review a card's terms and conditions and/or PDS for a clear understanding of its minimum income requirements. This may differ for each credit card.
Joint application: If your partner is willing to go on the credit card application with you, you’ll be able to combine your income amounts. Not only will you have a greater chance of reaching low income credit card minimum requirements, you could also qualify for standard or rewards credit cards. Just ensure that you’ve prepared an effective budget before applying. You don’t want to fall into debt and negatively impact your partner’s credit history, or your relationship, in the process.
Review your credit history: It’s not uncommon for credit reports to contain mistakes. Obtain a copy of your credit history and go through it with a fine-tooth comb. If you’re applying for a credit card with a bad credit score, your application will have a higher chance of being rejected. You can also learn more about how you can repair your credit score.
What are the pros and cons of a low income credit card?
Pros:
- Lower costs: As low income credit cards are typically no-frills cards, they can often come with lower than average fees or purchase rates.
- Build credit history: If you’re a casually employed young Australian, low income credit cards are one way to start building a credit history. A good credit history can help improve your likelihood of approval for personal loans or home loans in the future.
Cons:
- Grow debt: All credit cards bring a risk that the holder will fall into debt. Ensure you’ve set up a repayment plan and budget before you take out a credit card, especially on a low income.
- Hurt your credit history: If you’re not careful and apply for a card with income requirements higher than your own, you may hurt your credit score. Being rejected for a credit card will negatively impact your credit history. Double check the fine print on a credit card before applying just in case.
What low income credit cards are available for students?
Students can be eligible for basic low income credit cards. If you’re a student, taking out a credit card is an opportunity to learn about budgeting and financial responsibility. But it’s also a quick and easy way to grow a hefty debt before you’ve even graduated if you’re not careful.
Try to present yourself as the most reliable borrower before applying – whether it’s through taking out a part-time job or growing some savings.
Students may also be eligible for government financial assistance through Centrelink, such as Youth Allowance. Before applying for a student credit card, consider whether government assistance might better suit your financial needs and situation.
This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.