International Students: Getting An Australian Credit Card

International students in Australia can apply for a credit card to help them manage their finances and build a local credit history. Student credit cards are available from several Australian banks, including ANZ, Commonwealth Bank, NAB, and Westpac. To apply for a credit card in Australia, individuals must be over 18 years old and have a regular income, among other requirements. Student credit cards typically have low credit limits and minimal or no annual fees to help students manage their spending responsibly.

Eligibility criteria for international students

International students who live and study in Australia can access a credit card as long as they meet the eligibility criteria set by the bank or credit card company. While there are no credit cards designed specifically for students, international students on a temporary resident visa may face more challenges in obtaining a credit card. Here are the key eligibility criteria that international students should be aware of:

Residency and Visa Status:

Credit card companies in Australia generally prefer applicants to be Australian citizens or permanent residents. Some banks do not offer credit cards to temporary residents on student visas, while others may have specific requirements regarding visa validity. For example, Westpac requires visa holders to have at least one year of validity on their visa, while ANZ First for Students requires a minimum of nine months of visa validity.

Income and Employment:

To be eligible for a credit card, international students must demonstrate a regular income that is sufficient to manage repayments for at least the minimum credit limit available on the card. This can include income from part-time work, Youth Allowance, Austudy, or Centrelink payments. Some banks may also have additional requirements, such as a minimum income of $15,000 per year. Additionally, some banks may require applicants to have held a job for at least six months before applying for a credit card.

Credit History and Credit Score:

A good credit history and credit score are important factors in the approval process for a credit card. Banks and credit card companies will review your credit history and credit score to assess your creditworthiness. However, as an international student, you may have a limited credit history, which could impact your application.

Age and Student Status:

To be eligible for a credit card in Australia, you must be over the age of 18. Additionally, some student credit cards may require you to be enrolled in tertiary education or be a full-time student.

It is important to note that each bank and credit card company will have its own specific eligibility criteria, and it is always best to check with your chosen financial institution directly to understand their requirements.

Temporary resident status and student visas

International students on temporary resident visas can apply for credit cards in Australia, but it can be challenging. Credit card companies generally prefer applicants to be Australian citizens or permanent residents, and some banks do not offer credit cards to temporary residents on student visas. However, some banks will approve credit cards for people on work visas, provided their visas are valid for more than 12 months. For instance, Westpac requires visa holders to have a minimum of one year of validity.

To increase their chances of approval, international students should demonstrate a regular income, such as Centrelink payments or wages from part-time work, and apply for a card with a small credit limit of around $500 to $2,500. It is also advisable to have a permanent visa and a job held for at least six months before applying. Additionally, visiting banks in person can help international students understand their specific eligibility requirements.

While it is not mandatory to have a credit card, building a good credit score is beneficial for future financial endeavours, such as taking out loans or buying a house. International students in Australia can consider alternative options, such as a bank card with a Visa debit card, which can function similarly to a credit card.

Income requirements

International students in Australia can get a credit card, but they must meet certain eligibility criteria. The income requirements for international students to obtain a credit card in Australia are as follows:

Firstly, international students must demonstrate a stable income source. This can be shown through part-time employment, scholarships, or financial support from their home country. The minimum income requirement varies by issuer, but it generally starts from around AUD $15,000 per annum. Some student credit cards may have lower requirements, considering the typical financial situation of students.

Secondly, it is important to note that while not all banks in Australia require a local credit history, having a positive credit record from your home country can be advantageous. This is because it demonstrates your creditworthiness and ability to manage debt.

Thirdly, international students should be aware that their credit card options may be limited if they do not have a permanent visa or a job they have held for at least six months. Banks may be hesitant to offer credit cards to international students without these factors, as there is a risk of the student leaving the country and defaulting on their credit card debt.

Lastly, it is recommended that international students compare the fees and interest rates of different credit cards before selecting one. Student credit cards typically have lower credit limits and reduced or no annual fees, making them more affordable for students. However, these cards may have higher interest rates or substantial fees, so it is essential to read the fine print carefully.

Credit history and creditworthiness

Creditworthiness is a function of an individual's current financial situation rather than their future financial prospects. In Australia, creditworthiness is assessed by examining an individual's income, spending, debts, and credit score. Banks and lenders will also check an individual's credit history and add a listing when they apply for a credit card.

To build creditworthiness, students can apply for a credit card with a small credit limit of $500 to $1,000. They can also opt for a low-rate, low-fee credit card with a slightly higher credit limit of $1,000 to $2,000. This type of card can help students manage their finances without accumulating excessive debt.

International students in Australia may face challenges in obtaining a credit card due to their temporary residency status. Some banks may not offer credit cards to international students on student visas, while others may require a valid visa for more than 12 months. Additionally, international students must demonstrate a source of income, such as part-time employment or Centrelink payments, to qualify for a credit card.

It is important to note that a rejection for a credit card can negatively impact an individual's creditworthiness. Therefore, international students should carefully review the eligibility requirements of different banks and consider their financial situation before applying for a credit card.

Student-specific perks and features

Student credit cards in Australia are designed for beginner borrowers and university students. They have lower credit limits and minimal fees, making them a good way to build a credit score and learn about credit.

• Cashback: Some cards offer cashback on daily expenses like groceries or transportation, and on big purchases.
• Discounts: Some cards offer discounts at restaurants, retailers, or online subscriptions.
• Travel rewards: Some cards offer travel rewards for semester breaks or holidays.
• Complimentary insurance: Some cards offer complimentary purchase protection insurance and extended warranties for eligible items, which could be useful for students buying a new laptop or other study gear.
• Security services: Some cards offer security services like instant card-locking and Mastercard or Visa zero liability protection.
• Flexible repayment options: Cards often come with flexible repayment terms, allowing students to pay off balances over time without significant penalties.

When choosing a student credit card, it is important to prioritise features that align with your financial habits, like low fees and repayment flexibility, to avoid unnecessary costs.

Frequently asked questions