• • The Bankwest Breeze Mastercard is a fairly basic card with a low standard annual fee and a low ongoing purchase rate. It currently offers 0% p.a. on balance transfers for 24 months with 3% balance transfer fee. This card has no minimum income requirement.

• • Within the St.George range of credit cards, the St.George Vertigo Credit Card and the St.George Vertigo Credit Card – Cashback Offer have no minimum income requirements. Both cards come with a low annual fee of $55 and an ongoing interest rate of just 13.99% p.a.

• • The ANZ Low Rate Credit Card – Cashback Offer is another basic option, featuring a relatively low purchase rate and annual fee. No minimum income is required to be eligible to apply for this card.

• • The Westpac Low Rate Credit Card and Westpac Low Rate Credit Card – Cashback Offer, have relatively low purchase rates of 13.74% and a $59 annual fee. These cards have an income requirement of $30,000 p.a.

How do those income requirements compare within the market? While most ‘standard’ credit cards set income requirements between $30,000 and $40,000 p.a., higher end cards may require applicants to bring in $75,000 or more each year.

What if there’s no minimum income stated?

If a bank doesn’t list a minimum income – which they’re not legally required to do – you have to look at the card itself for clues. Higher-end cards like premium or platinum cards will usually require a higher minimum income. So if the card comes with travel benefits, rewards points or cashback, it might require a higher income (think $50,000 or up).

When I’ve asked about minimum income on a card before, banks have said heavier weight is likely placed on other aspects of the eligibility criteria, such as your assets and savings, existing debts and liabilities, and credit history.

What Counts Towards that Minimum Income?

Every card provider has different criteria for acceptable sources of income, so the following list is just a guide.

• • Income from Employment. That might include payslips, bank statements or letters from your accountant if you’re self employed. Include any bonuses or overtime you’ve received.

• • Investment Dividends. If you earn income from investments like shares, you can show proof through a recent tax return, current statements or notices.

• • Rental Income. Include at least 3 months’ worth of statements that prove income from an investment property, or a signed and current rental tenancy agreement.

• • Retirement Income. Not all banks accept income from government pensions. Some will accept superannuation payouts, and some will only consider you if you’re a full-time worker. To prove your income you’ll need to provide your most recent SMSF member benefit statement and a letter from your financial planner or accountant, or three months of bank statements if you receive income from a retail or industry superannuation fund. You can read more and find banks that accept pension payments on our Credit Cards for Seniors guide.

• • Maintenance Payments. Child Support and other similar family maintenance payments may be counted towards your overall income. To provide proof of the payments you receive, you may need to provide the Maintenance Agreement or Child Support Assessment Notice detailing the payment amount and frequency. Your bank statement may also be accepted as evidence.

• • Government Payments. Depending on the card in question, you may be able to include government payments as a source of income during your application. This may include Centrelink benefits or service pensions. Evidence may be offered in the form of bank statements or a letter from the government agency outlining the payments you receive.As an example, Bendigo Bank accepts the following as acceptable sources of regular income from its credit card applicants:
    • • Austudy
      • Family tax benefits A and B
      • Aged, disability, or veterans affairs pension
      • Age pension
      • Carer pension (where received for dependent child/children)

  • Who Do These Cards Work Best For?

    While anyone with a low income may apply for a low income credit card, these cards can work well for particular types of applicants.

    

    • • Students on a low income while they study.
    • • Part Time or Casual Workers.
    • • Self-Employed workers that are starting out or have seasonal income.
    • • Retirees on superannuation or pension payments.
      • Centrelink Applicants on government payments.

    What Do You Need to Apply for a Low Income Card?

    Most cards have eligibility criteria that covers these main points:

    • You must be 18 or over.
    • You must be an Australian citizen or resident.
      • Some providers state that cardholders must maintain a residential address in Australia to be approved.
      • Some cards allow applications from specified temporary visa holders.
    • You must have good credit.
    • You must not be currently bankrupt or insolvent.
    • You must have a steady income from accepted sources.

    You’ll be asked to provide proof of identity, income, expenses, assets and debts. If you have the documents ready, applying only takes 10 to 15 minutes.

    Q. Can you get approved for a low income card with bad credit?
    A. If you have bad credit, you will find it hard to get approved for any type of credit card, regardless of whether it has a low minimum income requirement. Most card providers place a heavy weight on credit score when determining whether or not to approve an application, so you may be better off taking a step back to improve your credit before you apply.

    Pros and Cons Low Income Cards

    • Low income cards can provide you access to credit, making it easier to manage your cash flow.
    • Low income cards can make it easier for cardholders with lower incomes to get approved – although other eligibility criteria must be met.
    • Some low income credit cards have lower credit limits, which can reduce the temptation to spend.
    • Many low income cards – especially on the lower end of the scale – tend towards the basic. This can make it easier to focus on the essentials, i.e. spending within your means and repaying what you owe before it attracts interest.

     

    • If you want to earn rewards, you may need to have a slightly higher income to get approved for a larger range of rewards cards.
    • The same applies if you want access to perks.
    • If you choose a rewards card, you may not get much value on your lower spend.
    • If you need a higher credit limit – say, to make a larger purchase that you know you can afford to pay back – you may not be eligible for it.

    💡 Top Tips for Keeping Your Card in Shape

    Want to make the most of your low income card once you’ve been approved? Here are our top tips for keeping on top of your card, so it doesn’t get on top of you.

    • Create a budget so you know how much you can afford to spend each month.
    • Track your spending using your card’s app or online banking.
    • Set a lower credit limit if you think you may be tempted to spend more than you can pay back.
    • Build up a rainy day fund that will allow you to cover your bills in times of need, so you don’t have to rely on credit.
    • Avoid using a lot of credit products, such as multiple credit cards and BNPL services, as they may be difficult to track and keep and top of.
    • Try to avoid spending just because you have credit available.

     

    Photo source: Getty Images