Currently full-time uni student, part time tafe student. I have 10K in savings. What are my chances of getting a credit card? Specifically 28 Degree, or AMEX basically I need to start to get a decent credit rating going. Not sure how it all works, but I know having a job is the main point but if I have 10K savings, will that be a big enough incentive?
I am currently waiting for a call from Telstra to tell me how I went in my interviews for a casual CS/Sales job.
Have heard of people getting the Woolies MC (from HSBC) and or Amex Qantas Discovery as students and putting in that they earn over $30k. They never checked it seems and got the cards. But this was back in 2011 and could have been desperate to just give the cards out to them as their first card.
As for GEs 28degrees, I've heard they're stricter. Coles is facilitated by GE too. They seem to have tightened up after being fairly lax years ago (maybe on entry to Oz market to build up base).
Good luck with the job and the card. If you apply for a basic card, or even one with annual fee on a high rate (over 21%) and low limit (under $3000) you should get it easy. As long as your ID and address history stuff checks out.
Besides income, experience shows the main things are how long you have been in the same job and same address. if memory serves me right, there should be plenty of credit card special which targets uni students eg CAN.
What about ask for a basic, low limit credit card from the bank where you keep your 10k? Probably not best the credit card in terms of interest & benefits, but at least they do know a little about your financial history. (Won't hurt to ask) Make a good credit history with this card then get other credit cards further down the track.
What i suggest is that before you apply just work out eligibility first. So, make sure you meet their minimum criteria.
Reason I say that I recall that for my first ever credit card, I applied with bank west (8 years ago now). I didn't get through. But for some reason they have that permanently in their record. So, not my credit history but in bank west system.
So, even after years applying their, they rejected me. Probably fault in system but this beens I can never get account with them ever. Not really missing out but still :)
Its a myth. You don't need a credit card at all. Unless you want to be a debt slave to rip off rewards programs. You can't afford it don't buy it.
That isn't the most dumbest comment I've ever read, but it's up there.
We place ever possible purchase on our credit card, providing their isn't a nasty surcharge.
We pay our credit card off in full each month.
Last year we received $1200 cash back (rewards program)
If you are disciplined you can make credit cards work for you.
Also more time for your saving to be in YOUR bank to earn whatever interest, and assuming you know how to manage your fund to get maximum gain. EG: 100% Offset account.
And how much extra did you spend to get that pitiful $1200 back? $10K+?
MYTH.
?????
We didn't spend anything extra.
I'm not sure you realize how it works.
All groceries and fuel we put on credit card, We eat out we credit card it.
We go to the mechanic, credit card,etc.
At the end of the month we pay the credit card in full, usually 2-4k
If we paid cash we still would of spent 2-4k.
So nothing extra spent, but $1200 better off.
MYTHBUSTED
Like guns they are very useful tools when handled with knowledge responsibility and care.
Get careless and well they can get you into trouble
No one has addressed the main point… you don't need a credit history in Australia.
I borrowed $500k with no previous credit history, credit cards, loans or even a phone plan.
gulp Me hopes you could afford it and pay it back. You certainly get a credit history if you're late or default. Bankrupts can't borrow again for over 5 or 7 years I think.
Want to know the details. I bet it was Wizard Home Loans back in 2006 when the world economy was oh so rosy and booming, low doc loans were handed out on the street.
Edit: oops not low doc, NO DOC is more like it! ;-p You lucky man.
Because you are Richie?
The two main things they look at are.
1 Residence.
2 Income.
They don't care about savings as they know, anyone can get a friend/relative to park some money in their account short term.
I agree with Richardwise as well, if you have a blank credit report it will never go against you.
The banks don't do a credit report to look for good things.
Residence as in renting and living alone, living with parents, owns house, how often you jump from house to house?
You will need income for a full fledged credit card. But some banks offer student credit card which have a easier requirements but the limit is very low. But you just need history, it won't matter on the size of the limit for now.
Good luck on the Telstra job. I did it for 3 years during university. Smashed commission back then when vodafone and optus feel flat on their faces.
Having income will be a key criteria in being approved.