Looking for credit card for unemployed and bad credit Australia? Then you got to stick around. Credit cards are very important for every business or individual. They help you easily manage your finances at the same time improving your banking reputation as hence, increasing your credit score. A good credit score helps you easily get approved for credit cards, bank accounts and even loans.
The unemployed in Australia will always want to go after low rate credit cards. This is because they don't want to go in for credit cards that will let them pay excessive fees which they can't afford. Moreover, low rate credit cards do not require much as initial deposit. Being broke financially doesn't mean you can't still get a credit card for yourself. There are always options out there for you.
Statistics have shown that your approval rate for applying for a credit card with bad credit is very low. This means, it is very difficult to get a credit card for bad credit in Australia but it isn't impossible. There are still some few options out there where you may apply and get approved. These options are no credit check credit cards.
That said, in this article, I will provide you the best credit card for unemployed and bad credit in Australia that will get you on banking track in the country.
What is a Bad Credit Score?
A credit score ranges from 300 to 850 points. In Australia, the average credit score, or Equifax Score (formerly VedaScore), is 550. In Australia, a credit score of less than 500 is regarded bad, and scores of less than 400 are considered extremely bad. According to homeloanexperts.
What Causes Bad Credit Scores?
Credit scores can be increased or lowered depending on a number of criteria related to lending and credit products. Major concerns include missed credit card, home, personal, and car loan installments, as well as utility bill requirements. They won't be noted on your credit report if they're under $150 or less than 60 days past due, but if they are, they can be on file for up to five years.
Even if you pay on time, every time, you can almost guarantee that this won't happen, credit agencies can still make mistakes. You're out of luck if these errors go unnoticed, which is why you should check your credit report for anomalies at least once a year.
Other factors that can lower your credit score are:
- In a short period of time, applying for too many credit cards, balance transfers, and loans
- Too many credit cards, balance transfers, and loans have been denied in a short period of time.
- Overspending your credit limit
- Debts that have not been paid are being pursued in court.
- Declaring yourself bankrupt
- Having a spouse or partner default on a debt for which you are both accountable
What is a Low Rate Credit Card?
A credit card with an annual percentage rate (APR) of less than 8% is classified as 'low-rate.' APRs on traditional credit cards are frequently more than twice as high. It's worth noting that up to 49% of consumers may never acquire the low-rate credit card's promised APR.
A low rate credit card has a low purchase interest rate. If you don't pay off your credit card bill in full each month, this could help you save money.
Low rate credit cards are usually 'no frills,' meaning they don't have the same rewards programs, perks, or bonuses as premium cards.
Are Low Rate Credit Cards Ideal for Unemployed in Australia?
In Australia, a number of credit cards have low minimum income requirements ranging from $15,000 to $35,000 per year. These cards make it easier for low-income individuals, students, retirees and even the unemployed in the country to obtain a credit card. To assist keep your account costs down, they frequently provide competitive interest rates and lower annual fees.
What to Consider Before Applying for Credit Card for Unemployed and Bad Credit in Australia
While considering to go in for credit card for unemployed and bad credit in Australia, keep in mind the following.
- Credit Score — It's crucial to know your current credit score as an applicant. The interest rate you obtain and the credit limit you receive will be determined by your credit score. If you have strong credit, you have a better chance of getting a cheaper interest rate and a bigger credit limit. If you have negative credit, on the other hand, you should expect a higher interest rate and a lesser spending limit.
- Interest Rates — When your debt is not paid off, it's crucial to know the interest rates offered. Instant Approval Credit Cards often have higher interest rates if you have bad credit, so it's essential to pay off your bill as soon as possible. For balance transfers, most cards offer 0% interest for the first 12-15 months. You can pay off any balance transfers until the interest rates are added to your repayment if you have this benefit.
- Annual Fees — Approval of Some Interests While some credit cards have no annual membership fees, some do. If you intend to have your card for a long time, be sure you know what yearly fees are required. Annual membership fees may or may not be a concern for many applicants.
6 Best Credit Card for Unemployed and Bad Credit Australia
A bad credit and an unemployment status in Australia should let you stick in mind that you can't apply for and get a credit card in the country. That said, here are some best options you can go in for.
1. St.George Vertigo Card
The St.George Vertigo is a no-frills credit card with no interest on debt transfers for 32 months and no annual fee for the first year. This card is an ideal choice for the unemployed with bad credit living in Australia.
The St.George Vertigo is a low-rate credit card designed for those who just need the essentials in a credit card. It now features a long 0% balance transfer offer that allows you to pay down existing balances interest-free for 32 months if you apply by June 30, 2022. It doesn't charge a balance transfer fee and has a $0 annual cost for the first year (after that, it goes up to $55).
If you want to make new purchases, the St.George Vertigo card has a 13.99 percent p.a. interest rate and up to 55 days of interest-free credit. And, unlike many other cards on the market, while you have a balance transfer, you'll still earn interest-free days on new purchases.
2. Westpac Low Rate Card - Cashback Offer
With a $59 annual fee, this low-rate card gives up to $400 cashback in the first few months.
The Westpac Low Rate Credit Card is ideal for those looking for a low-cost account with basic features. You can also get $100 cashback on your account if you apply as a new customer by June 30, 2022, and spend $1,000 on eligible purchases each month for the first four statement periods after card acceptance.
This no-frills credit card also features a low purchase interest rate of 13.74 percent p.a. and interest-free days if you pay your amount in full by the due date on each statement.
3. ANZ Low Rate Credit Card
The ANZ Low Rate credit card offers a low interest rate on purchases and new cardholders.
This card is highly recommended because it has a low 12.49 percent purchase interest rate and 15 months of no interest on balance transfers. It's also a good choice because the minimum income requirement is minimal, making approval simple.
This card does not offer any interesting incentives or programs aside from the low interest rate. Customers with excellent credit should choose this option because it allows them to make a balance transfer with no interest for 15 months.
The application for this low rate credit card takes typically 5 minutes.
4. Bendigo Bank Low Rate Credit Card
The Bendigo Bank Low Rate Credit Card is another great credit card option for the unemployed in Australia who have bad credit. For the first 20 months, this no-frills, low-rate card offers 0% interest on purchases and debt transfers.
You can save up to 20 months with 0% interest on purchases and balance transfers if you apply by July 31, 2022. You'll be charged a 2% one-time balance transfer fee, and the interest rate will increase to 11.99 percent p.a. after 20 months.
The Bendigo Bank Low Rate Mastercard also features a low annual fee of $45 for a low rate card, which is competitive. While it doesn't come with many added benefits, it's worth considering if you're looking to save money.
5. Bank of Melbourne Vertigo Card
This is a basic credit card with an extremely low 0% interest rate on balance transfers for the first 32 months and no annual fee for the first year.
The Bank of Melbourne Vertigo is a good choice for those who wish to keep their credit card charges low and don't need a lot of bells and whistles. If you have a credit card that you wish to pay off, the lengthy balance transfer offer allows you to save money by paying 0 percent p.a. interest for 32 months and paying no balance transfer charge if you apply by June 30, 2022 and submit your balance transfer request with your application. It also has a $0 annual cost (usually $55) for the first year.
6. Virgin Australia Velocity Flyer Card – 0% Purchase Rate Offer
For the first 14 months, this Velocity Frequent Flyer Credit Card provides 0% interest on purchases and balance transfers — but keep an eye on the revert rates.
The Virgin Australia Velocity Flyer has a $129 annual fee and earns between 0.5 and 0.66 Velocity Points per $1 spent on approved transactions. It also includes a $129 Virgin Australia gift voucher per year, which may help you justify the price.
For the time being, this introductory offer offers a 14-month interest-free duration on both purchases and balance transfers. The purchase rate rises to 20.74 percent p.a. at the end of the 0% term, while the balance transfer rate rises to 20.99 percent p.a. Both of these rates are higher than the national average for credit cards in Australia, so you’ll get the most value from this offer if you can pay off what you owe before interest is charged.
How Can I Apply for a Low Rate Credit Card?
You can apply for a credit card online in 10–20 minutes if you've compared your options and picked one that meets your demands. Make sure you meet the other eligibility requirements before you begin.
This involves being over 18 years old and meeting the Australian residency status requirements mentioned for the card, in addition to the minimum income criterion.
Requirements to Apply for a Low Rate Credit Card in Australia
When you apply for a credit card, you must provide details about your personal and financial situation. Each application has a different structure, but here's a quick rundown of everything you'll be asked for:
- Personal details — This information contains your entire name, date of birth, address, and living arrangements. If you've only been at your present address for a few years, you may be asked to supply information about your previous residence.
- Identification — Your driver's license number, or another form of identification such as your passport or Medicare card number, will be required. This assists in confirming your identification and allows the credit card company to seek access to your credit file.
- Income information — This information contains your employment status, pay, length of work, and contact information for your employer. To verify these facts, you may be required to provide recent pay slips. You'll normally need to submit one or more of the following supporting documentation if you're self-employed, on a pension, or retired:
- 3 months of bank statements that show you're receiving payments
- Your latest Tax Assessment Notice
- A letter or other proof of income from government benefits
- Contact details for your accountant
- Other financial information — You'll be questioned about any other earnings or assets you have in addition to your principal source of income. Any savings accounts, as well as other assets such as stocks or real estate, are included. You'll also have to provide information about your monthly household costs and any existing debts, such as loans, credit cards, and buy now, pay later agreements (BNPL).
What are the Benefits of a Low Rate Credit Card?
- Lower minimum income requirements — The annual income threshold for these cards is usually between $15,000 and $35,000. To put this in context, some other credit cards require a minimum income of $75,000 or more - usually when they are premium cards with loads of features.
- Competitive annual fees — Annual fees for low-income credit cards are typically $100 or less. You can even find cards with no annual fee after the first year or with a $0 annual fee the first year.
- Lower Interest rates — Some low-income cards also have low-interest rates. This means you might receive a card with an annual percentage rate of less than 13%.
- Interest-free days — Most credit cards provide interest-free days on purchases, though the length of time (up to 55 days) varies by card.
- Simple features — Most low-income credit cards prioritize basic cost-cutting features above frills such as rewards, concierge services, travel incentives, and insurance coverage.
- Build credit score — If you pay off your balance by the due date shown on each statement, you can use a low income credit card to build a good credit score. A good credit score also increases your chances of getting approved for further loans in the future.
Can I Get a Credit Card Without a Credit Check in Australia?
Yes! You can only apply for a credit card in Australia if you agree to a credit check There are no credit cards that guarantee approval, but you may improve your chances by making sure you meet the eligibility requirements and submitting as much information as possible on your application.
Payday loans are the only non-credit-check products available in Australia, which opens up a whole other can of worms. These loans are primarily for people with bad credit who need $2,000 or less in a short amount of time and who have a high interest rate.
How to Deal With Bad Credit
To begin, obtain a copy of your credit report to learn what it has to say about you. Request that any errors be corrected, and then start working on improving your credit. This can be accomplished by:
Making on-time payments on all of your debts, including your mortgage, auto loan, personal loan, and credit card
- If you're having trouble making payments, talk to your creditors about working out a payment plan.
- To discuss your alternatives, meet with a financial counselor.
- Consider a debt consolidation plan.
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Final Thoughts on Credit Cards for Unemployed and Bad Credit Australia
If you have bad credit, it's not the end of the world. If you're having problems being approved for a credit card, credit cards for bad credit might help you rebuild your credit. Because of the quick application process and quick response time, this is beneficial to applicants.
You should not consider running after any kind of credit cards in the country, low income or low rate credit cards are the options for you. You need a credit card that offers cashbacks and low minimum deposits while saving you extra money. These low rate credit cards stand out for these qualities.
With so many options provided above, you should be able to find one that precisely meets your needs.