If you are an immigrant to Australia, it is difficult to get a credit card because you don’t have a credit history established in this country. But the good news is that there are some credit cards that you can obtain and use while you are creating a good credit card history.
Specialist Credit Cards
The first way that you can start working towards establishing your credit history is to apply for a specialist credit card. These cards are specifically for immigrants and people who do not have an established credit history. The companies behind these cards make it easier for you to apply and obtain a card since you don’t have that credit history established yet
Open Application Cards
These open application cards are another way that you can try to establish your credit history. Stores will tend to offer these open application credit cards were sure cards without reviewing your credit history. They tend to be a little easier on you and your credit history then banks and credit card companies. The only downfall is that they often come with high interest rates in an annual fee. But if you can pay off your balance each month and not carry it in balance over from month to month then this card will be good for you. You just have to figure out whether the annual fee is going to be worth it. It might be worth it for you. The time to at least establish and create a credit history and then you can get a normal credit card and close this open application card.
Secured Credit Cards
Yet another way to try and create a credit history is to use a secured credit card. Secure credit cards are relatively easy to get if you have something that the bank will take as an asset. The way secured credit cards work is that you have to put up an asset in order to get a card. Sometimes the bank will link the card to your savings account so if there is ever a problem it can access the cash in your account. This is a good option if you know that you will never default on your obligations.
Prepaid Credit Cards/Debit Cards
Any of the above methods will help you establish and create that credit card history in Australia. But if you don’t need a credit card then there is an even easier method where you won’t have high interest rates or you don’t have to have an asset backing up your account with the bank. This option is to have a prepaid credit card or debit card with the bank. A prepaid credit card is one that you put money on upfront and then spend it. A debit card is one that is linked directly to your bank account and every time you use, it deducts from your checking account. This is the simplest way to have the power of the credit card without having interest fees and an annual fee. And you won’t have to worry about your credit card history.
With the above options for establishing a credit card history, you should be able to find one that suits your needs. Unfortunately, it will take time and some extra money but after awhile, you will have an establish credit card history and then the banks and credit cards will give you a regular credit card. No matter what, take this opportunity to work on establishing a good credit history and start fresh if needed. Use the credit cards you get with care and responsibly.