Credit cards on a lower income
Banks must check that you can afford a credit card before approving it. A lower income doesn’t rule you out, but it limits the credit limit you can be approved for and makes fees and interest a bigger share of your budget.
| Card | Minimum credit limit | Minimum income stated | Card fee | Purchase rate | Link |
|---|---|---|---|---|---|
| CommBank Low Rate Credit Card | $500 | Not published | $6 a month ($72 a year) | 10.99% to 15.99% p.a. (personalised on approval) | View on CommBank site |
| CommBank Low Fee Credit Card | $500 | Not published | $0 in any month you spend $300 or more, otherwise $3 a month | 20.99% p.a. | View on CommBank site |
| St.George Vertigo | $500 | Not published | $7 a month ($84 a year) | 13.99% p.a. | View on St.George site |
| Westpac Low Rate Card | $500 | $30,000 a year | $7 a month ($84 a year) | 13.74% p.a. | View on Westpac site |
“Not published” means the provider’s product page doesn’t state a minimum income; the provider still assesses income and expenses. A low minimum limit doesn’t mean an application will be approved.
How lenders assess you
- Income must be regular and verifiable. Westpac and St.George both ask for regular, verifiable Australian taxable income. Westpac states a minimum of $30,000 a year for its Low Rate card.
- Expenses and existing debts count. Rent, loans, other cards and buy now pay later accounts are all taken into account.
- The limit drives the assessment. Lenders look at whether you could afford to repay the credit limit, not just what you plan to spend, so a lower limit is easier to fit within your budget.
Keeping the cost down
- Ask for the lowest limit that covers your needs. You can request a lower limit at any time.
- Compare the yearly cost of fees. $7 a month is $84 a year.
- Set up automatic payments so you never pay a late fee.
Alternatives to a credit card
If you need to pay for an essential item, the No Interest Loans Scheme (NILS), offered through community organisations, lends to people on low incomes with no interest and no fees. Centrelink advance payments are another option for people on eligible payments. A debit card gives you the convenience of card payments with no debt.
If you are already struggling with repayments, free financial counsellors at the National Debt Helpline (1800 007 007) can help you work out your options.