Applying For Low-Income Credit Cards

When it comes to applying for credit cards in Australia, it’s essential to think about all of the available options including those with low-income requirements ranging between $15,000-$35,000. 

Along with offering these cards, there are options available for students, retirees, and others in lower-income brackets. When it comes to something like this, the rates will be competitive and the requirements won’t be as stringent as other options.

Features and Advantages of Low-Income Credit Cards 

Reduced Income Requirements – The entire premise behind these cards is to reduce the minimum limit for what is an acceptable income for applicants. This allows individuals that are only earning $15,000-$35,000 per year an opportunity to sign up. You will have to provide proof for your income including bank statements to make sure everything checks out. This can include your place of employment at the time.

Good Annual Fees – The annual fee tends to be lesser than other cards on the market.

Reduced Interest Rates – The goal with any low-income credit card is to reduce the rate that is being offered. This means you can end up with an interest rate below 13% depending on who you sign up with. In certain cases, you can start off with a 0% fee for a reduced period.

Interest-Free Days – If the goal is to reduce your payments, you can tap into interest-free days, which allow up to 55 days of interest-free debts. 

Reduced Features – Advanced features are common with premium cards, but are not in place here. The idea is to offer a no-frills solution that is straight to the point.

Ideal for Building Credit – Using a quality low-income credit card ensures a person can build up their credit score over time. This is great over the long-term and will make you a more viable applicant for other types of loans down the road.

Things to Keep in Mind

If you are thinking about applying for a low-income credit card, it’s best to think about all of your options in advance.

Minimum Income Requirements – This includes being able to meet the minimum income number that has been listed by the company. This will also have to account for any debt and/or expenses that are under your name. Everything has to line up for you to be a viable candidate.

Source of Income – Lenders will need payslips and other relevant information regarding your place of employment. This is to verify your claims and making sure everything works out as planned on their end.

Credit Score – The lender will take a look at your current credit score to see whether or not your history makes you viable for a low-income credit card.

Affordability – If you are applying for a new card, you have to be able to afford it. This means not borrowing more than you could ever repay as this will impact your credit score.

How to Apply for a Low-income Credit Card

The application process involves finding a good credit card that fits the role and applying online within 10-20 minutes. Just makes sure you are eligible and the rest is going to be done by completing the application. It is a simple process and doesn’t take a long time.

Key Details for The Application

For an application to go through, there are certain details that will be asked for by the institution. This includes specific financial and/or personal information too. Please note, each application is going to have a unique set of requirements, but the general framework tends to be the same. Here is a detailed look at what you can expect when it comes to the application process.

Personal Information – This will include personal details such as your name, address, date of birth, living arrangements, and any other personal identifier the company requires. In some cases, you may be asked for a previous address too.

Official ID – This can include something as simple as your driver’s license number or a passport depending on what you have available. The goal is to have an official way to identify the information you have put down on the application along with your legitimacy as an applicant.

Employment Details – Since this is a credit card application, your salary is also going to be asked for. This includes the length of employment, role, salary, and even your employer’s contact information. In some situations, you re also going to be asked for payslips to confirm what you have written. If you are self-employed, you are going to be asked for a detailed Tax Assessment Notice along with other information such as the contact details for your accountant.  

Financial Details – The last stage is going to require you to showcase any other type of money that is being earned under your name and this can even include something like interest payments from a savings account or dividend payments from shares in your portfolio. You will also be asked about any debt that is present under your name along with your expenses.

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