In today's digital age, credit cards have become an indispensable part of financial transactions in Australia, offering a blend of convenience, security, and rewards that cater to the diverse needs of consumers. As a leading study abroad consultant, AECC understands the pivotal role that credit cards play in facilitating the everyday lives of international students in Australia.
Credit Card Usage in Australia has seen a significant uptick, with more Australians relying on credit cards for both online and offline purchases. This surge is attributed to the seamless integration of credit cards with cutting-edge payment technologies, such as contactless payments and mobile wallets, making transactions quicker and more secure.
The Benefits of Credit Cards in Australia extend beyond mere transactional advantages. They offer a financial lifeline in managing cash flows, providing emergency funds, and aiding in budget tracking. Moreover, credit cards serve as a valuable tool in building a credit history, which is crucial for international students planning to settle in Australia post-study.
If you are thinking of a card now, here are some of the popular student credit cards in Australia from the top banks
- Commbank Low Fee Credit Card
- Coles Low Rate Mastercard
- Latitude 28° Global platinum card
- ANZ First Credit Card
- The Qantas American Express Discovery Card
- NAB Lowfee Credit Cards
- Bankwest Breeze No Annual Fee card
- Citi clear card
- Westpac Student Credit Card
Types of Credit Cards in Australia
Australia's financial landscape offers a diverse array of credit card options, catering to the varied needs and financial habits of its residents. From students to professionals and entrepreneurs, there's a credit card type designed to complement every lifestyle and financial goal.
- Standard Credit Cards: Basic credit facilities for everyday use.
- Rewards Credit Cards: Earn rewards on purchases, redeemable for various benefits.
- Low-Interest Credit Cards: Lower interest rates for cost-effective borrowing.
- Balance Transfer Credit Cards: Transfer existing debt to enjoy lower or 0% interest rates temporarily.
- Student Credit Cards: Designed for students, with lower limits and minimal fees.
- Business Credit Cards: For managing business expenses, with features like expense tracking.
- Travel Credit Cards: Benefits for travellers, including no foreign transaction fees and travel insurance.
- Platinum and Premium Credit Cards: Exclusive benefits for high spenders, including concierge services and extensive rewards programs.
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Cost of Living in Australia
Eligibility Criteria for International Students to Get Credit Cards in Australia:
To apply for a credit card in Australia, International students must meet certain eligibility criteria as mentioned below:
- Age Requirement: Must be 18 years of age or older.
- Valid Visa: Hold a valid Australian student visa, permitting your stay and study in Australia.
- Proof of Income: Demonstrate a stable income source, whether from part-time employment, scholarships, or financial support from your home country.
- Australian Bank Account: Possess an active bank account in Australia to facilitate financial transactions.
- Credit History: While not all banks require a local credit history, having a positive credit record from your home country can be advantageous.
- Residential Address in Australia: Provide proof of a local address, which can be your residence while studying.
- Enrolment in an Accredited Institution: Show evidence of enrolment in a course at an Australian educational institution.
Documents Required
To apply for a credit card in Australia, international students must furnish the following documents:
- Passport: A valid passport as proof of identity.
- Student Visa: Your current Australian student visa to confirm your eligibility to study and reside in Australia.
- Proof of Enrolment: Documentation from your educational institution confirming your enrolment.
- Bank Statements: Recent statements to demonstrate financial stability.
- Income Verification: Payslips or scholarship letters that verify your income.
- Australian Tax File Number (TFN): If applicable, for tax purposes.
- Proof of Address: Utility bills or a rental agreement to verify your Australian residence.
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Things to Know in Australia
Steps to Apply for a Credit Card for International Students
Banks in Australia do not consider the credit score from your home country. You must have a good credit history maintained after you arrived in Australia. If you are applying for your first credit card in Australia with no credit score, your timely payment of taxes, electricity bills, gas, and other utility bills can be used as supporting documents to establish your credibility
You might be asked to provide your license copy and savings account number along with these documents. Check out the bank's website well in advance and prepare the documents.
For international students, applying for a credit card in Australia involves a series of steps designed to ensure you meet the eligibility criteria and successfully manage your finances abroad. Here are the steps to apply for a credit card for international students, ensuring a smooth transition into managing your finances in Australia.
- Research: Identify credit cards suitable for international students, comparing features and fees.
- Check Eligibility: Verify you meet the age, income, and visa conditions.
- Gather Documents: Prepare your passport, proof of enrolment, income evidence, and any additional required documents.
- Apply: Submit your application online or visit a bank branch.
- Complete Application Form: Fill in the form accurately with your financial and personal details.
- Submit Application: Attach all documents and submit your application for review.
- Await Approval: Wait for the bank to process your application and conduct a credit check.
- Activate Card: Once approved, activate your credit card as instructed.
- Understand Agreement: Familiarize yourself with the credit card terms, including payment due dates and fees.
A frequently asked question is whether international students can apply for a credit card in Australia. The answer is affirmative, and grasping the nuances of this process is essential for those aiming to leverage financial services to their advantage. Australian banks do offer credit card options tailored for students, characterized by lower interest rates and reduced annual fees, thereby providing a practical solution for daily financial management. To be eligible, international students must typically demonstrate stable income, be over 18 years of age, and possess a valid student visa. Beyond mere financial management, acquiring a credit card also serves as a foundational step towards building a local credit history in Australia, which is advantageous for any future financial requirements, including loans.
If you aspire to pursue higher education in Australia, our expert counsellors can help with your study abroad plans. Get in touch now!
FAQs
What's the minimum income requirement for international students to get a credit card in Australia?
The minimum income requirement varies by issuer but generally starts from around AUD $15,000 per annum. Some student credit cards may have lower requirements, considering the financial situations of students.
Can international students with no credit history get a credit card in Australia?
Yes, international students without a local credit history can still apply for credit cards in Australia. Banks may offer specific student credit cards that consider the unique circumstances of international students.
What is the credit limit for international students on credit cards in Australia?
The credit limit for international students typically ranges from AUD $1,000 to $2,000 for student credit cards, depending on the bank's policies and the student's financial situation.
