Credit cards for people on Centrelink

Can I apply for a credit card if I’m receiving government assistance?

You need some form of regular income to get a credit card. Some banks and credit card companies will include Centrelink payments as part of this income.

This can include:

• Austudy
• Carer's allowance
• Child support payments
• Child care benefits
• Centrelink long-term pensions
• Parenting payments
• Foster care allowance
• Family tax benefit A and B

Getting an application approved also depends on other factors, including your employment status, your credit history, expenses and other debts.

Which credit card companies accept Centrelink payments as income?

You can compare details for some Australian credit card issuers below to see whether or not they consider specific benefits.

^{*N/A - In this instance, the institution doesn't have a set policy on this, so you'll need to contact them directly to discuss it on a case-by-case basis.}

Not sure if you're eligible? Contact the card provider

It's impossible to know if you'll get a credit card application approved until you submit one. And getting rejected can temporarily hurt your credit score.

So it's a good idea to call a bank or card provider before applying and asking specifically about your situation and the Centrelink benefits you receive.

How do I apply for a credit card if I have more than one source of income?

If you receive income from a few sources – such as child support payments, Family tax benefit A or B and a casual job – you should include details for all of them when you apply for a credit card.

Every card provider has a different application form, but you list your main source of income (such as a casual or part-time job) when asked to nominate your income. And if you receive a parenting payment from Centrelink you would list that under additional sources of income.

You'll probably need to provide documents to establish each source of income. This includes payslips or bank statements.

How can I increase my chances of credit card approval if I'm on Centrelink?

1. Find a suitable card. If you have a low income, your best bet is something like a low rate credit card. These often have credit limits as low as $1,000.
2. Check the eligibility requirements before applying. You need to be 18 or over, and there are also requirements like residency and minimum income. Minimum income requirements for credit cards can start from around $30,000, according to Finder's credit cards database. But a lot of banks don't state a minimum income anymore.
3. Get your documents together. You'll be asked to provide proof of identification (such as your driver's licence or passport) and proof of income. This may include recent pay slips, bank statements and documents from Centrelink.
4. Only apply for one card at a time. Every credit card application you make is listed on your credit report. Applying for too many credit cards in a short period of time can lower your credit score. So, aim to only apply for one card at a time. If your application is rejected, spend some time (usually at least 6 months) improving your credit score before you apply for another one.
5. Check your credit score. You usually need to have a good credit score to get a credit card. Check your credit score for free through Finder.

What kind of credit card can I get?

Different types of credit cards can suit different needs. For instance:

• If you receive a relatively low income, consider a card with low minimum income requirements and a low minimum credit limit.
• If you'll only use a card for emergencies, a card with $0 annual fee won't burn a hole in your pocket while you're not using it.
• If you think you might not pay off the balance in full each month, consider a card with a low interest rate for purchases.

Our expert says: The easiest credit cards to get approval for

"Most banks offer a low rate credit card. These cards have purchase rates of around 15% or lower, annual fees under $100 and often have credit limits as low as $500 or $1,000. These are easier cards to get approved for, and are worth considering if you're on a low income. But you still need regular income and a good credit score too."

Richard Whitten

Editor

Alternatives to a credit card when you're on Centrelink

It can be difficult to get approved for a credit card when your main source of income is from JobSeeker or another Centrelink payment. But if you need access to funds, some other options to consider include:

• Personal loans. There are some personal loans with low income requirements. But as they may have higher interest rates and fees than other loans, make sure you consider the costs and compare options before deciding to apply.
• No interest loans. No Interest Loans (NILs) offer up to $3,000 for people who earn less than $70,000 (or $100,000 as a couple). These loans are administered by Good Shepherd and are available through a range of non-profit community organisations around Australia.
• Centrelink advance payment. You can ask for a one-off or regular advance from Centrelink when you're recieving an eligible payment, including JobSeeker, Family Tax Benefit A, Age Pension, Carer Payment and Austudy. You can check if you're eligible and apply through MyGov, the Express Plus app, in a service centre or by calling 136 240.

Written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for over 7 years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise

Richard has written 582 Finder guides across topics including:

• Home loans
• Property
• Personal finance
• Money-saving tips

Co-written by

Amy Bradney-George

Editor

Amy Bradney-George was the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 16 years of editorial experience and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald. See full bio

Amy's expertise

Amy has written 557 Finder guides across topics including:

• Credit cards
• Frequent flyer
• Credit score
• BNPL
• Money management
• Sustainability