Credit cards are essential if you need money for an important expense. Being enrolled in a university comes with expenses other than the budgeted – study supplies, textbooks, travel and more.
A student credit card is often the best solution for emergency expenses, especially when funds from home are met with unforeseen delays. Credit cards are essential to meet important expenses, online payments, and other important transactions in the absence of ready cash. Though one may see credit cards as a boon, their reckless use could submerge you under a pile of debt. Learn more about Study abroad in Australia.
Through the medium of this blog, you will get to know everything there is about the best student credit cards in Australia.
What is a student credit card?
Student credit cards are designed for students to purchase essential items. Credit cards can be technically called loans. Limit of credits on your card increases with a record of prudent spending, and your ability to make timely payments.
Banks exercise extra cautious while issuing credit cards, especially to international students. Credit cards are issued to students whose profiles display less potential to default.
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Reasons why international students may find it difficult to secure a credit card –
- International students are not permanent Australian nationals
- Unstable and temporary employment
- Risk of leaving the country without paying the debt
Does this mean getting a credit card is impossible for international students? Certainly not!
How do you stand eligible for a credit card in Australia?
- The mandatory and most important document determining your eligibility – is your visa.
- A copy of your visa should be enclosed with your application.
- Your visa should be valid for a minimum of 9 months from the date of your application. Most banks ask for a visa valid beyond 12 months from the date of your application.
Source of Income
- Banks require a minimum annual income of $15000.
- Cards with minimum credit do not need the applicant to meet the income requirement
- Students may provide the bank a proof of allowance received. Students with paying internships or jobs may provide their latest salary slips.
- Australian Banks do not regard the credit score for your native country.
- You need to maintain a clean credit record
- This can be maintained by paying your utility bills, electricity bills, taxes on time
- Using credible supporting documents also helps increase your credit score.
With the aforesaid documents, the student is required to share a copy of your savings account number with the bank.
Must Read: Cost of Studying in Australia.
Advantages of a Student Credit Card
- Credit cards offer discounts, cashback and other benefits
- Responsible behaviour of making timely payments and staying within credit bounds helps you build your credit history.
- Lower credit card limits ensure that you do not overspend. Staying in budget helps you make timely payments and avoid slipping into debt
Points to keep in mind to secure credit cards
- Maintain a savings account in the same bank
- Research on renowned banks in Australia and open accounts with credible providers
- Consider opening accounts with a bank that offer credit cards that suit your
Opt for the lowest credit limit
- Leave the credit limit on your application for the bank to decide.
- If you opt to mention the credit limit on the form, ensure that you put a smaller number.
- A smaller credit limit would make you appear less risky to the bank
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