How to Successfully Apply for A Student Credit Card

Rates and Fees verified correct on November 29th, 2014

Financial management is and will always be a matter of concern for everybody. If you are a college or university student, obtaining a credit card is the best way of building a good credit history.

You might have seen various credit card applications displayed all over the campus. This guide will help you to successfully apply for a student credit card and avoid bad debt pitfalls.

What will this article cover?

  • What are the things you need to do to successfully get a card?
  • What tips will ensure you have a better chance of getting one.
  • Why are these techniques going to work?
  • Who has done this before and what results did they get? Who provides the cards?
  • How do you apply for a card?

With each passing year, more and more students are opting for student credit cards. It is very thrilling for a student to get hold of their first credit card, and use the piece of plastic to get whatever they want, at the swipe of a card. However, being a student you should be aware of the pitfalls associated to owning a credit card. Hence, it is always suggested to get hold of a credit card from a reliable company.

Commonwealth Bank Low Fee Student credit card

Student Credit Card

If you are ready for your first student credit card then consider CBA Low Fee Student credit card. It offers up to 55 days interest free, emergency overseas assistance when travelling, all without having to pay for an annual fee .

  • $0 p.a. annual fee
  • 19.74% p.a. on purchases
  • 5.99% p.a. for 5 months on balance transfers
  • Cash Advance Rate of 21.24% p.a.
  • Up to 55 days interest free

Student Credit Cards

Rates last updated November 29th, 2014

Interest rate (p.a.) Balance transfer rate (p.a.) Annual fee Cash advance rate (p.a.)
Commonwealth Bank Low Fee Student credit card
Commonwealth Bank Low Fee Student credit card
A low interest rate on purchases with no annual fee for students. 19.74% p.a. 5.99% p.a. for 5 months $0 p.a. 21.24% p.a. Go to site More info
ANZ First Visa Credit Card
ANZ First Visa Credit Card
This simple a low annual fee credit card is ideal for students 19.74% p.a. 0% p.a. for 16 months $30 p.a. 21.49% p.a. Go to site More info
Commonwealth Bank Low Fee Credit Card
Commonwealth Bank Low Fee Credit Card
A credit card with a low interest rate and low annual fee. 19.74% p.a. 5.99% p.a. for 5 months $24 p.a. 21.24% p.a. Go to site More info
St.George Vertigo Visa
St.George Vertigo Visa
Low ongoing rate on purchases, introductory balance transfer offer, plus a low annual fee. 0% p.a. for 12 months (reverts to 13.24% p.a.) 3.99% p.a. for 6 months $55 p.a. 21.49% p.a. Go to site More info
Bank of Melbourne Vertigo Visa Credit Card
Bank of Melbourne Vertigo Visa Credit Card
Enjoy a low rate on your everyday purchases with a low balance transfer deal. 0% p.a. for 12 months (reverts to 13.24% p.a.) 3.99% p.a. for 6 months $55 p.a. 21.49% p.a. Go to site More info

Factors to be considered while applying for a card

Many banks have easy to follow eligibility criteria for a student credit card. Most of the Australian banks require proof that you are a student.. A student card would be good proof and will confirm the fact that you are enrolled in a 2-year or 4-year University or college course and that you have a reliable source of income.

The bank needs to know your full name, occupation, residential address. If according to the rules of a particular bank, you are allowed to opt for a secondary credit card, you will have to mention the details of the secondary cardholder.

Having a part-time or full-time job is not considered a prerequisite, as very often children ask their parents to pay their bills whenever they fall behind on payments or have oversized balances. Besides, credit card companies are aware that students don’t have high earnings during their educational tenure. On the other hand, they also know that things change for good once students get their graduation degrees.

If you are planning to opt for a student credit card, the credit card company would ask for a co-signer who would act as collateral, a form of insurance. This would be the person the company would fall back on if you were unable to repay the debt. This could be your guardian, parent, or any family member.

Before you select a credit card, you should compare the interest rates offered by the various student credit cards companies. Enquire about the introductory rate and the rate levied after the end of the introductory period. Also, take a look at the credit card charges for annual fees, late fees, and other fees associated with charges levied over the present credit limit.

Many credit cards award you with added benefits, like reward points or cash back on your purchases. Reward points can accumulate into nice additional perks eventually.
Make certain that the benefits you have been awarded do not have any exorbitant fees or higher rates.

Tips for acquiring a reliable credit card

  • Always opt for credit cards with reasonably low limits. Choosing a student credit card with a high limit is not advisable for unemployed students as they are notoriously famous for splurging on shopping sprees.
  • Don’t forget, the credit is meant to establish the foundation for a good credit rating, it is not your source of income. Always maintain a low balance and repay bills regularly.
  • Student credit cards are known for their low interest rates. Many companies would offer 0% Annual Percentage Rate (APR) for the initial 6 months. This is the best time to make purchases. However, make sure you check for the rates after the first 6 months. If the company levies a high rate of interest, it is advisable you switch to another card that offers a low rate.
  • Look for credit cards with an online management system. When you have easy access to your account via the Internet, you can check your financial status from time to time and use the rewards more often.
  • Some companies have certain policies when it comes to a Lost Credit Card’. This would protect your account even when your wallet is stolen or is lost.

Prepaid Credit Cards Comparison

Provider Details Card Issue Fee Load/Reload Fee Monthly Service Fee Apply

Woolworths Reloadable MasterCard

You have the choice of two fee options:

Option A – Monthly

Option B – Pay as you LOAD

$9.95

$0 Option A

$1 Option B

$1 Option A

$0 Option B

Apply
Apply

Various Student Credit Cards Providers in Australia

  1. Westpac
  2. Bankwest
  3. Commonwealth Bank
  4. St.George
  5. NAB

Westpac

Westpac bank has an excellent offer for full-time tertiary students from an established tertiary college or institution. This is best for students who are not working full-time or have to change their address often. In short, it’s best for students who cannot qualify to the standard norms for a student credit card application.

With the Westpac Low Rate Card students get 55 days interest free on their credit purchases and have to pay an annual fee of $45 for the initial year. Students are offered an Interest rate of 12.49% p.a.

Students can apply online from the official site

Bankwest, the Bank of Western Australia offers the Bankwest Breeze MasterCard as a Student Credit card. According to the terms of the credit card application

  • Students should be at least 18 yrs old and a resident of Australia
  • Students are expected to hold a BankWEst Student Transaction Account.
  • They should be a full-time student at UWA, ECU, Murdoch, Notre Dame, or Curtin.
  • Students should at least be in their 2nd year of study
  • Clear credit history

Bankwest Breeze MasterCard offers an up to 55 days interest free. Card holders are charged 0% p.a. for 4 months balance transfers. The annual fee is $59.

Commonwealth Bank Student credit card

The commonwealth bank offers options for TAFE or Full-Time tertiary students. According to the rules of the application process

  • The student should open a streamline account with the Commonwealth Bank and register the necessary details with any branch of the bank
  • Authenticate the full-time student status by showing your student id card or a letter of enrolment.
  • Students need 100 ID points to qualify for an application.

Given below are the 100 points needed for opening an account

Type of Identification
Points value
Passport or birth certificate 70
Student ID (with photo) 40
Australian Drivers License 40
Medicare card 25
Other bank credit card, debit card or passbook(only one allowed per bank other than the Commonwealth Bank) 25
Other identification documents (e.g. library card, health fund card) 25

A special feature of this student credit card is that students don’t have to pay withdrawal fees and monthly account fees. There is also no annual credit card fee.

You can download the application form

St.George Vertigo

Although no direct student credit card offers exist, students who can pass the application requirements can benefit greatly from the lowest interest rate available for online application.

You can view the Vertigo offer here, which has also won Cannex’s ‘Cheapest Credit Card’ for 2008 and 2007.

NAB Student card

To be eligible for NAB Student Card, students should

  • Above 18 years old
  • Enrolled as a full-time student at a University, Secondary, Agricultural or TAFE College
  • Possess a current Student ID card

Students can gain access to NAB branch withdrawals and deposits, NAB Telephone banking, NAB Internet Banking, NAB ATMs (a nominal fee is charged for non-NAB ATMs), NAB Visa Debit and EFTPOS.

Student Credit Card Application Procedure

  • Get in touch with the bank and enquire about all the information needed
  • Give them all the necessary details
  • Outline your present financial details
  • Verify the entered details and submit the completed form to the bank
  • When your application has been approved, you will be awarded with a Credit Card.Thereafter a balance transfer facility will be activated for your use.

Important things to consider when applying

During the online application process, the credit card providing bank asks the applicants to provide significant info necessary for the assessment of the applications.

Don’t forget you allow the bank to acquire information pertaining to you from the credit reporting agencies. This includes details of your credit history and credit worthiness. The bank holds all the rights to exchange the provided information to credit reporting agencies, other credit providers, and its referees.

As per the rules put forth by the privacy act of the bank, some of this information is entrusted to a credit-reporting agency. Review your information before you submit. The credit reporting company will include history of bill payments and delays in payments in your credit history. If you accidentally provide incomplete, inaccurate, or outdated information, you might have a problem when you get your credit reports.

The application process would take approximately 20 minutes if done online. You will be instantly informed when the application has been submitted. Take note that banks follow a 35-minute time out session for security purposes. If you happen to leave the application window open for 30 minutes without entering any details it would time out and you will have to start it all over again

Make a sensible decision before selecting your credit card. When you get hold of the credit card, you would have to be extra careful about your finances.

When you finally start using the credit card, ensure that you stay within your credit limit to reserve available credit for emergencies and avoid penalties. When you avoid debts on your student credit card, you will be able to build a good credit history, and this will be a key factor in the future of your credit history and your ability to get a mortgage for a house.

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This page was last modified on 29 August 2014 at 17:41.

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One Response to How to Successfully Apply for A Student Credit Card

  1. Default Gravatar
    Tang | February 4, 2009

    as an international student who has been here for more than 2 years, is there any credit cards that i m eligible to apply for?

Credit Cards Comparison

Rates last updated November 29th, 2014
Interest rate (p.a.) Balance transfer rate (p.a.) Annual fee Cash advance rate (p.a.)
ANZ Low Rate
ANZ Low Rate
A low rate on purchases, balance transfer and a low annual fee. 13.49% p.a. 0% p.a. for 16 months $58 p.a. 21.74% p.a. Go to site More info
Citi Simplicity Card
Citi Simplicity Card
$0 annual fee credit card with a long term balance transfer offer. 19.99% p.a. 0% p.a. for 12 months $0 p.a. 19.99% p.a. Go to site More info
HSBC Platinum Credit Card
HSBC Platinum Credit Card
Earn rewards points plus a balance transfer offer. Access to prestige services including a personal concierge service and VISA Platinum reward program. 19.99% p.a. 0% p.a. for 8 months $0 p.a. 21.99% p.a. Go to site More info
Westpac Low Rate Card
Westpac Low Rate Card
A low interest rate credit card with a low annual fee and balance transfer offer. 12.49% p.a. 0% p.a. for 14 months $45 p.a. 21.49% p.a. Go to site More info
American Express Qantas Discovery Card
American Express Qantas Discovery Card
Receive 7500 Qantas Points and pay no annual fee ever. Plus earn 1 Qantas Point per $1 spent on all your everyday purchases. 20.74% p.a. 0.99% p.a. for 6 months with 1% balance transfer fee $0 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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