Credit cards for low income earners do not require a high salary to apply
Low income credit cards are available to applicants who are unemployed, receive government benefits or those on a retirement income.
There are certain credit cards aimed at low income earners. Generally speaking, to apply for a credit card you need to be earning more than $15,000 per year. You can find the minimum income application criterion listed at the bottom of each credit card’s review and application page. If there is no minimum income requirement listed, then anyone is able to apply for the product, the important thing is that you have some form of income.
Low Income Credit Card
The ANZ Low Rate credit card is a simple low rate credit card for making everyday purchases on. It features a low ongoing rate on purchases, a low balance transfer offer and a low annual fee. Minimum income for credit card application is $15,000 per annum.
- $58 p.a. annual fee
- 13.49% p.a. on purchases
- 0% p.a. for 16 months on balance transfers
- Cash Advance Rate of 21.74% p.a.
- Up to 55 days interest free
- Minimum Income Requirement of $15,000 p.a.
Low income credit cards with a minimum $15,000 income
Rates last updated November 28th, 2014
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Owning a credit card has become a necessity of modern life. Whether you want to make online purchases or reservations at a hotel or pay bills for instance, credit cards are as vital as they are handy. Don’t let a low income mean you miss out on owning a credit card. If you’re a low income earner, here are some tips you can use to get your credit card application over the line.
Remember the following when completing a credit card application on a low income
We will start by saying that it is illegal to lie about your income when you apply for a line of credit. But it’s important that you have a think about the forms of income you may be able to list when you apply for a low income credit card. Think laterally about all your possible forms of income.
Consider a joint credit card application with your spouse. Joint credit card applications are based on the household’s combined income. If you were unable to meet the minimum income requirement, the earning power of a spouse may be enough to put you above the minimum requirement.
Too much debt?
The ratio of assets to debts plays an important role in the success of an applicant’s credit card application.
Take this example. ‘Person A’ has a credit card with a debt of $5,000. When ‘person A’ applied for the credit card, they took the maximum credit limit made available to them ($5,000). ‘Person A’ is unhappy with the amount of interest they’re paying on the $5,000 balance so they decide to transfer the balance to a new credit card. ‘Person A’ applies for a credit card (all application criteria including the minimum income requirement are met), but is declined due to an insufficient income. In the time between the first and second credit card applications, ‘person A’s’ income has not increased, their debt level has increased. The relationship between your assets and your debts is know as your debt serviceability ratio. Eliminate your debts, pay off and close other credit cards or personal loans for example, if you’re having trouble getting approved for a credit card.
Not enough money?
An obvious one, but must one that must be said. A second income (or full time employment) may be enough to get approved for a credit card. Even if it’s something as small as mowing someone’s lawns on the weekend. It can be included in the application.
Be sure to just put down your share of the rent. Don’t enter the combined rent for the household.
Low income credit cards are available. You simply have to find the one that is best for you. It may mean paying off some debts or reducing your expenses in order to gain approval. But, once it is done you will have the convenience of credit card use while also establishing a good credit file.