Low Income Credit Cards
Posted February 3rd, 2010 and last modified June 3rd, 2013Getting approved for low income credit cards does not have to be challenging. Once you know which cards you meet the criteria for all you have to do is apply for them. In some cases you may need to reduce your monthly expenses in order to gain approval.
Low income credit cards can be a very good thing for those people who have a small income but still want the convenience that comes with credit card ownership. It is nearly impossible to get through life without a credit card in your wallet. Even people on a tight budget want or need to make on line purchases or reservations, which can often only be done with a card. Owning a credit card has become a necessity. Do not think that your income is too low for most credit cards, there are some specifically made to suit your financial constraints.
Low income credit cards with a minimum $15,000 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
- 12.99% p.a. on purchases
- 0% p.a. for 9 months on balance transfers
- Cash Advance Rate of 21.49% p.a.
- 55 days interest free
- Minimum Income Requirement of $15,000 p.a.
- Westpac 55 Day Credit Card – A simple no frills credit card with a low ongoing interest rate of 0% p.a. for 6 months (reverts to 19.59% p.a.) , a balance transfer rate of 3.99% p.a. for 6 months with 1% balance transfer fee and a low annual fee of $0 p.a. annual fee for the first year ($30 p.a. thereafter).
- St.George Vertigo MasterCard – The interest rate on their low income credit cards is only 13.24% p.a. and it has a balance transfer rate of 0% p.a. for 8 months. The annual fee is $55 p.a. and owners get 55 interest free days on purchases.
- ANZ Low Rate – This card has a 12.99% p.a. interest rate on purchases and gives owner 55 interest free days. The annual fee is $58 p.a..
If you are concerned that you might still not meet the criteria for low income credit cards you may not be looking at your income in the right way. It is illegal to lie about your income in order to get a line of credit, so you should always be truthful. That said it is important that you include any income in ways that you do not realize.
- Apply jointly with your spouse – Credit cards are offered based on household income. If you and your spouse apply together you will likely meet the minimum requirements.
- Understand your debt ratio – If it is high, meaning you spend almost all of the money you make you are a risk for the credit card issuer. Try to eliminate some of your expenses in order to improve this number.
- Make more money – Taking on extra work in the form of a second job or even odd jobs like mowing lawns or childcare can help to boost your household income. If you already do these things be sure to include them in your credit card application.
- Open a cheque account – Even low income credit card issuers look favorably on someone who is able to maintain a cheque account. To further increase your chances open a savings account too.
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.
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6 Responses to Low Income Credit Cards
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Credit card offers:
Learn about our information service| HSBC Credit Card | NAB Premium Card | Commonwealth Bank Low Rate Card | ANZ Low Rate |
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0% p.a. for 6 months on balance transfers & no annual fee |
1% p.a. for 12 months on balance transfers & platinum benefits |
0% p.a. for 5 months (reverts to 12.99% p.a.) |
0% p.a. for 9 months on balance transfers & a low ongoing rate |
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my daughter applied for a credit card on line and was refused. I told her not to continue with on line applications as I believe the applications will appear on her credit report and make it more difficult to get approved. Is that correct?
she is 19 and 5 months has held a full time job for 2 years after being a casual for 12 months in her last year of school.
she clears $520 / wk has a car loan of $58 per week on a new vehicle she bought in November. Do you have any suggestions as to which bank is best to approach for her to obtain a credit card with a maximum of $3000 approved.
Thanks
Hi Paul. Thanks for your question. Provided that your daughter met the application requirements set out on the review and application page, there should be no reason why her application wasn’t accepted. Having said that though, it’s a mystery why some lenders will reject an application and others will approve it – applications are assessed through the lender’s internal systems, and this information is not available to the public, or even us. I wrote this article after I had my own credit card application rejected by Bankwest a year ago – and it goes through some of the common reasons why applications can get knocked back. In terms of suggesting a bank that will approve her application, my only suggestion is to try the lender that she holds her transaction and savings account with – and to apply in person. Face to face applications are generally the way to go if you’re unsure about your chances of approval. Online applications are assessed in a matter of minutes by computer systems,and if something doesn’t match up, it can be grounds for rejection.
Yes, every time your daughter applies for credit, she will be marked with a credit enquiry on her credit file. Although not a bad thing, having too many credit enquiries on your credit file can raise red flags for lenders when you go to apply for a credit product. Think about it like this. If a lender can see that you’ve tried to apply for credit 6 times in the last month, for instance, it will make them think that there’s something wrong with the eligibility of the applicant.
Regarding credit limit. When you apply for a card, you can elect to receive a specific credit limit; however, the final say rests with then lender as they will approve a limit based on the size of the debt they think an applicant can service.
Hope this has helped.
Jacob.
Hello!
Help me to know about this,i earn $180 per month and i do not posses any bank accounts , do I have any chance of getting a credit card? Thank you.
Hello Pascal,
thanks for the question!
Many of the low income credit cards on this page have a required minimum income of $15,000 a year, which equates to $1,250 a month. Prepaid credit cards have no minimum income required, instead allowing you to load up funds to your credit card as you need them. This page explains how they work.
I hope this helps,
Marc.
hello, i have just come to Australia and do not have a job yet. I want to have a credit card but a lot of banks say they need my income proof. As I have just come, I do not have income proof in Australia, but I can make some deposit to the bank. is it possible to get a credit card in this way?
thanks
Hi Perry. The bank will be looking for proof of regular deposits into your account, not just a lump sum payment. You may have to hold on a credit card until you meet the minimum income requirements. Until then, you may want to consider a pre-paid credit card. Thanks.