For international students studying in Australia, having a credit card can provide both financial flexibility and a way to build credit history. Many Australian banks offer specialized credit card options for international students, with flexible requirements and perks suited to a student’s lifestyle and needs. Here’s a guide on choosing the best credit card in Australia as an international student, benefits, requirements, and top recommendations.
Why Do International Students Need a Credit Card?
Credit cards can be valuable for international students for several reasons. Firstly, they offer a convenient way to manage expenses, especially for urgent needs like travel or course materials. Additionally, credit cards help build a credit history, which can be beneficial if students plan to live in Australia after their studies. Lastly, student credit cards often come with lower credit limits and simpler eligibility criteria, making them accessible for newcomers to the country.
Benefits of Student Credit Cards in Australia:
| Benefit | Explanation |
|---|---|
| Ease of Access | Lower income and documentation requirements tailored for students |
| Flexible Credit Limits | Lower limits ensure students can manage finances without overextending |
| Builds Credit History | Provides an opportunity to build credit while studying, useful for future applications |
| Emergency Financial Support | Useful for unexpected expenses or purchases, allowing a buffer for emergencies |
Top Credit Card Options for International Students in Australia
1. ANZ First Student Credit Card
- Annual Fee: $0 (first year), $30 thereafter
- Credit Limit: Starts from $1,000
- Interest Rate: 20.24% p.a. on purchases
- About: ANZ offers a tailored student credit card with no annual fee in the first year. It’s accessible for students with a minimum income, making it an ideal option for international students on a budget.
2. Westpac Low Fee Credit Card
- Annual Fee: $0 (conditions apply)
- Credit Limit: From $500
- Interest Rate: 19.95% p.a. on purchases
- About: The Westpac Low Fee Credit Card is suitable for students seeking low costs and manageable credit limits. International students can apply with basic income proof or scholarship documentation.
3. Commonwealth Bank Essentials Card
- Annual Fee: $24
- Credit Limit: Starts from $500
- Interest Rate: 9.90% p.a.
- About: Known for its low-interest rate, this card helps students keep monthly repayments low. Commonwealth Bank provides easy access for international students with minimal paperwork.
4. NAB StraightUp Card
- Annual Fee: $10-$20 per month (based on credit limit)
- Credit Limit: $1,000 – $3,000
- Interest Rate: 0% p.a.
- About: The NAB StraightUp Card charges a flat monthly fee rather than interest, making it ideal for students who prefer a straightforward fee structure without interest calculations.
Comparison Table
| Credit Card | Annual Fee | Credit Limit | Interest Rate | Ideal For |
|---|---|---|---|---|
| ANZ First Student Credit Card | $0 (first year), $30 | $1,000+ | 20.24% p.a. | Students on a budget |
| Westpac Low Fee Credit Card | $0 (conditions apply) | From $500 | 19.95% p.a. | Low-cost option for students |
| Commonwealth Essentials Card | $24 | From $500 | 9.90% p.a. | Low-interest rate seekers |
| NAB StraightUp Card | $10-$20/month | $1,000-$3,000 | 0% p.a. | Simple fee structure enthusiasts |
Eligibility Requirements for International Student Credit Cards
Most credit card providers in Australia require the following from international students:
- Proof of Enrolment: You need to be enrolled in a recognized Australian university or college.
- Minimum Income Requirement: Some banks require evidence of part-time work, while others accept scholarship income.
- Australian Residency: You should have a valid student visa with residency in Australia.
- Age Requirement: Most banks require applicants to be at least 18 years old.
It’s important to check each bank’s specific requirements as they may vary slightly. For comprehensive details on eligibility and terms, visit each bank’s official page; you can start with ANZ’s Student Card Options.
How to Apply for a Student Credit Card
- Choose the Right Card: Based on your budget, repayment capability, and eligibility, pick the credit card that suits your needs.
- Prepare Required Documents: Gather necessary documents such as your visa, passport, proof of enrollment, and evidence of income or scholarship.
- Submit Your Application Online: Most banks offer online applications, which makes the process quicker and easier for students. Simply upload documents as required, and the bank will guide you through the remaining steps.
- Wait for Approval: Approval times vary, but you can expect to hear back within a few days to two weeks, depending on the bank’s processing time.
- Activate and Use Your Card Responsibly: Once approved, activate your card and use it wisely to build credit while managing your expenses.
FAQs
Q: Can international students get a credit card without a job?
A: Yes, some banks accept proof of scholarship or savings as an alternative to job income.
Q: What happens if I exceed my credit limit?
A: Exceeding your limit can lead to penalties and negatively impact your credit score, so monitor spending carefully.
Q: Can I increase my credit limit as an international student?
A: Many banks allow credit limit increases based on a history of responsible card use and evidence of improved income or financial stability.
Q: Will having a credit card affect my student visa status?
A: No, having a credit card does not impact your visa status, provided you manage payments and comply with financial agreements.
Q: Are there alternatives to student credit cards?
A: Prepaid cards and debit cards are alternatives, though they don’t offer the credit-building benefits of a student credit card.
Conclusion
Having a credit card as an international student in Australia can offer flexibility and a foundation for building financial habits. Options like the ANZ First Student Credit Card and Commonwealth Bank Essentials Card cater to various budgets and needs, making it easy for students to find a card that fits their lifestyle. Remember, responsible usage is key to making the most of your student credit card and establishing a positive credit history in Australia.
To explore more options, start with the ANZ Student Credit Cards page for a great overview of student-friendly options.
