Why do Credit Card Companies need to Know My Income for a Credit Application?

Information verified correct on October 21st, 2016

Income requirements for credit card application in Australia

Credit card companies ask for a wide variety of information when you apply for a card. In addition to your personal data like your age and address they will also ask for your financial information, including how much you make each year. They do this in order to figure out how much you could reasonably afford to spend on your card and still be able to make payments toward the debt. They are basically trying to figure out if you will make enough to cover the debt you will likely build up on the card.

A credit card usually has an advertised credit limit that is the maximum amount they will offer persons who apply for that particular card. It does not necessarily mean that you will get that amount as your credit limit. Each applicant is judged based on their income, their work history, and their credit score and history. They are then assigned a credit card limit based on those findings. People who have a spotty financial history and low income are given lower limits while those with higher income and better credit files are given higher spending limits. This is obviously because those who make more can afford to spend more and still pay it back.

St.George Vertigo Visa

St.George Vertigo

The St.George Vertigo credit card is a consistently popular credit card on our website. We put this down to the fact that the card offers one of the most competitive interest rates on purchases, and a fantastic balance transfer offer.

  • $55 p.a. annual fee
  • 1% p.a. for 12 months (reverts to 13.24% p.a.) on purchases
  • 0% p.a. for 18 months on balance transfers
  • Cash Advance Rate of 21.49% p.a.
  • Up to 55 days interest free

Before you apply for a credit card you should note the minimum income requirement for that card. If you do not make enough to qualify you will have to look at other card options. On the other hand, if you make significantly over the minimum income you might want to look at more prestigious cards. Gold credit cards and Platinum credit cards usually require higher incomes from their clients and also come with higher annual fees and more valuable rewards programs. You should always apply for a credit card that that also suits your budget.

As the global economy has struggled in the past few years many credit card companies have gotten more strict about income requirements. In the United States they have even begun using income estimation technology that uses several databases to determine an applicants true income. While this technology has not yet made its way to Australia it is sure to be here soon. It will make it easier for card issuers to know how much to offer you based on how much one can really afford to pay back each year. Remember that it is always in your interest to be honest about your income so you never wind up with a bigger credit card bill then your can afford to repay.

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Credit Cards Comparison

Rates last updated October 21st, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months (reverts to 13.99% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $59 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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