Low Income Credit Card Options

LGabe on 12/04/2017 - 16:36
Last edited 12/04/2017 - 16:56

I am a 21 year old student working part time and looking for some good options for my first credit card. I work 2-3 days a week and would earn $38,000 at the most which disqualifies me from most, if not all, American Express cards. From what I have seen the minimum income levels are all $40k+, the only exception being the David Jones Amex which is $25k, but comes with few benefits.

In terms of rewards and ability to break even from annual fees this is the best option I have found.
https://www.anz.com.au/personal/credit-cards/rewards/platinu…

The ANZ Rewards platinum has a income requirement of $35k a year and has a promotion running whereby you receive a $250 Westfield gift card when you spend $2500 in 60 days; this is perfect for me because my car rego+insurance is due next month and will come to just over $2500. The other benefits include no annual fee for the first year (normally $95), double points at Myer/David Jones/Bunnings, triple points at Webjet as well as uncapped points until the 5th of August (normally capped at $2000).

Obviously not everyone needs a credit card, myself included, but I thought it would be interesting to explore whats out there for low income earners like myself.

Financial

Comments

  • TakaHas on 12/04/2017 - 16:47
    +2

    Note, your income does not only include your salary from work, it can be dividend, pocket money, investments, etc.

    For David Jones Amex, if they have not changed the rules, it should be total household income, so you should be able to apply and get approval for the card. They might contact you if you do not have an established credit file.

    • Gabe on 12/04/2017 - 16:57

      Thank you, I have amended.

  • kerfuffle on 12/04/2017 - 16:52
    +2

    I think DJs is still $25 000 if you open it in store.

    Source: current DJs employee

    • Gabe on 12/04/2017 - 16:57

      Thanks, edited.

  • supnigs super skids on 12/04/2017 - 17:34

    Use your mums name. Is she working? U can get supplementary cards issued to you

  • bluesky on 12/04/2017 - 18:50

    The ANZ card sounds good, if the $2600 spend, and only 1 year free-fee is not an issue for you.

    It is worth keeping in mind, with Amex cards, requirements are generally based on household incomes. Although the definition is not spelt out, a search of household income says:

    Household income is a measure of the combined incomes of all people sharing a particular household or place of residence.

    I have trouble believing the latter as it cannot possibly mean students sharing a place together. But spouse/partner's income, or maybe parents' income, if one is still living at home, is most likely allowed. They should be able to confirm.

    This may widen your options with the Amex free cards. Amex Essential has a household income requirement of 40K, but only requires $750 spend for $75 bonus (via referral). And, you already satisfy Qantas Discovery requirement of $35K income, although on the downside, it does not provide an application bonus.

  • garetz on 12/04/2017 - 19:00

    Get one of your parents to open an account, then add you to the account as a child card. Then after 12 months or so, when you are in a better financial position, apply for it yourself.

  • jjjaar on 12/04/2017 - 19:08
    +1

    A lot of the credit cards at CBA have no fees for full time students and low minimum limits.

    I think going for something with rewards is probably a bit dangerous as a first card. Just go for something simple that gives you some more time to pay off rather than over complicating it.

    Then, once you have credit history, and an understanding of credit cards [1] you can go for something else.

    [1] I knew someone who had a credit card for two years that thought each specific transaction was due 55 days after you made the transaction and was then confused by his interest charges.

  • chumlee on 12/04/2017 - 20:17
    +4

    Do you really need a credit card.

  • spackbace on 12/04/2017 - 22:44
    +1

    Just don't. Not as a student.

    • [Deactivated] on 12/04/2017 - 22:52

      this, why would a student want a CC anyway?

      • spackbace on 12/04/2017 - 22:54

        I can understand the allure of cashback, etc but yeah if it gets out of control, or even that fee in the 2nd year kicks in, it's gonna be hard to stay on top of payments.
        And then hello debt!

        • Gabe on 13/04/2017 - 09:09

          As I said, I have no real need for a credit card but I wanted to see what was out there for when I decide to get one.

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