Student credit cards — basic cards for low income students

Can students in Australia get credit cards?

Yes. To get a credit card in Australia you need to be over 18 and have regular income.

There are no credit cards designed specifically for students. But if you're working part-time while studying and aren't earning much, you probably want a low rate, low-fee credit card with a low credit limit (around $1,000 or $2,000, for example).

This kind of card can help you spend money when you need it without getting into too much debt.

Student credit cards 101

• When you apply for a credit card, the bank or card company examines your income, spending, debts and credit score.
• If you get approved, your card will have a credit limit. This is the total amount you can spend on the card.
• The money you spend on your credit card is called your balance. You have to pay the balance off eventually.
• Each month when you get your credit card statement (the record of your card spending and total balance) you can choose to pay off:
  • The total balance. This way you can avoid interest charges and stay out of debt.
  • The minimum repayment. This is around 2-3% of your balance. You have to pay this. You'll get charged interest on the rest of the balance.
  • A partial repayment. You can also choose to pay off any amount that's greater than the minimum repayment but less than the total balance.
• Most credit cards charge an annual fee. Low rate cards tend to have the lowest annual fees (around $100 or less).

Our expert says

"Don’t be like me as a student. I grabbed my first credit card and racked up a $2,000 bill that I couldn’t pay back. I learned my lesson early, which is to make sure you can pay off your spending in full every month before you experiment with credit cards. Once you can, however, they can offer great value back on your spending."

Graham Cooke

Head of consumer research

Pros and cons of student credit cards

Our expert says: Credit cards are not free money!

"Your late teens and early 20s is the peak age for getting into big credit card (or buy now, pay later) debt. A credit card is not free money. It's expensive money. If you don't pay off your balance each month. But if you do, a credit card is pretty useful. It lets you manage your spending while you're at TAFE or uni and build up good credit history."

Richard Whitten

Editor

What features can I get with a credit card?

• Interest-free days. Most credit cards offer an interest-free period for purchases, such as "up to 55 days" if you pay the total amount listed on your statement by the due date. This gives you a way to avoid being charged interest on your shopping.
• Instalment plans. A lot of credit cards offer instalment plans for purchases or part of your balance, similar to buy now pay later plans. For example, if you bought a $2,000 laptop, you could pay it off in monthly instalments over 6 months and would know exactly how much each payment needed to be.
• Digital wallets and virtual cards. Most major banks and brands offer credit cards you can add to Apple Pay, Google Pay, Samsung Pay and other digital wallets.
• Complimentary extras. Some student credit cards come with extras like complimentary purchase protection insurance and extended warranties for eligible items, which could be handy if you buy a new laptop or other study gear.
• Security features. Credit cards offer security services like instant card-locking and Mastercard or Visa zero liability protection.

How to apply for a student credit card

After finding a suitable credit card, the next step is applying and an application online should take 10-15 minutes.

Common eligibility requirements

• Are you at least 18 years old? You need to be over 18 years old to apply for any credit card in Australia. If you are under 18 you could use a debit card instead.
• What is your residency status? Credit card companies generally prefer you to be an Australian citizen or a permanent resident.
• Are you an international student? Some banks don't offer credit cards to temporary residents on student visas. Some will approve cards for people on work visas as long as their visas are valid for more than 12 months.
• How much money do you earn? You must have enough income to manage repayments for at least the minimum credit limit that's available on a card. Income can include Centrelink payments and your wages from part-time work.
• What's on your credit report? If a credit card is the first credit product you apply for, you usually won't have any listings on your credit report. But the bank or credit provider will check your credit history and add a listing when you apply.

Documents and information you'll need to provide

• Personal information. This includes your full name, date of birth, residential address, email address and phone number. You'll also need to provide a form of identification, such as your driver's licence or passport.
• Student information. You may be asked to include details of the university, TAFE or other institution you're studying at and the course you're enrolled in.
• Employment and income information. You'll need to provide details of your employer and income, such as contact details and recent payslips. If you earn income from other sources, such as Centrelink payments, you can include these as part of your application.
• Other financial information. Details of any assets and debts that you have, including savings accounts or other loans. You will also be asked to estimate your monthly spending as well.

Frequently asked questions

• Can I get a student credit card that offers rewards?

  Most student credit cards are designed as low-cost options and don't come with a rewards program. But if you're interested in earning rewards for your spending, you can compare student credit cards and rewards credit cards to see which type of card suits your needs. You may also want to consider a debit card with rewards debit or a prepaid travel card that earns points.

• What happens if I miss a payment on my student credit card?

  Not making payments on your student credit card will cause your debt to increase very quickly. Interest will be charged on the balance and you may also be charged a late payment fee of around $10 to $30. If you continue to carry a balance on the card, you will be charged interest on the entire balance (including the late payment fee and interest charges). It could also negatively affect your credit report. Always aim to pay at least the minimum off your card by the due date on your statement and contact your issuer to discuss your circumstances if you're struggling to meet these payments.

• What happens to unpaid student credit card debt if I move overseas?

  If you don't continue to make payments on your Australian credit card, the consequences could include:

  1. Additional fees and interest on your Australian credit card, increasing the total amount of your debt.
  2. Late payment or default listings on your Australian credit report. This may make it harder for you to obtain credit if you return to Australia in the future.
  3. Your credit card debt may be passed on to debt collectors. While most debt collectors in Australia operate nationally, there are some international debt collectors that could attempt to recover the debt when you live overseas.
  4. The credit card provider may take legal action, which could include suing you for the amount owed or having you declared bankrupt.

• Can I earn points for paying my university fees with a credit card?

  Earning points for university fee payments is often tricky because it depends on your card and how you make the payment. For example, BPAY is a common option for paying university fees but isn't usually an eligible transaction for earning credit card points.

  Generally, your best bet for earning points for university fees is to pay by card on campus or through an online payment system like ANZ eGate, CommBank BPOINT or Citi PayAll (if you have a Citi credit card). It still depends on how the payment is processed, because it could go through as a purchase or a bill payment. But if it's processed as a purchase, you'll get points in the same way you would for your everyday shopping.

  As university fees can be worth thousands of dollars, you could start by trying to make a partial payment with your credit card. Then you can check how it shows up on your credit card account. If it's a purchase and you earn points, you could pay the rest on your card, But if it's not, you could look at other payment options.

To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten as part of our fact-checking process.

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 565 Finder guides across topics including:

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