Best Low Income Credit Card

April 12th, 2010

Low income credit cards are ideal for individuals who want the convenience of owning a credit card but cannot qualify for a standard credit card. There are some good options out there in the market. We show you the best low income credit card deals and how to obtain one of them.

Credit cards are no longer an option, they are a necessity. From paying for local groceries to shopping online, they are indispensable in our modern lives. But a lot of Australians would shy away from the thought of owning a credit card, figuring that they might not get approved for one, and even if they do, could never keep up with interest payments. If you consider yourself to fall into this category, then you are probably unaware of the existence of low income credit cards. These cards are suitable for people with modest earnings, and were custom designed for their use. Read on to find out the best low income credit card for you, and how to obtain it.

Low Income Credit Cards

The following three cards are for Australians with a minimum of $15000 annual income, and they are among the best low income credit card group in the country:

• St.George Vertigo Card – Featuring a very modest interest rate of 12.49% p.a. on purchases, this is a good choice for individuals on moderate earning levels. You can choose to have a credit limit as low as $500 if you do not want to saddle yourself with too much involuntary debt. The card also provides up to 55 days interest free period on purchases, and has a low annual fee of $55. You can even take advantage of a balance transfer offer for 2.99% interest p.a. for 6 months.
• Citibank Silver Card – This card also features 55 days interest free period, and has an annual fee of $89. The interest rate on purchases is 20.74%, and there is a balance transfer option for 12 months at a rate of 2.90% p.a.
• ANZ Low Rate MasterCard – Featuring a low annual fee of $58, and interest free up to 55 days, this card charges a competitive rate of 13.24% on purchases.

How to Apply

Applying for low income credit cards is not that hard as you only have to show an income of $15000. Follow these suggestions to better your chances of approval:

Make a joint application with your spouse – The annual income level can be the household income. Applying for a joint account increases your total earnings level. Reduce your debt – If you have a high debt ratio (a lot of debt obligations such as mortgages, auto loans etc as compared to earning or assets) your application does not look good. Consider paying down some of your debt before applying.

Show supplementary income – Accept some side jobs for a bit of additional income. If you already engage in such casual jobs be sure to mention it in the application. Maintain a cheque or savings account – This will reflect positively on your application.

If you’ve identified the best low income credit card for you, go ahead and apply for it. Following the above guidelines will make easy work out of applying for low income credit cards.

Editors Choice: Best Credit Card Deals

Credit Card	Card Details	Interest Rate p.a.	Cash Advance Rate p.a.	Balance Transfer Rate p.a.	Annual Fee	Interest Free Days (Up To)
Suncorp Clear Options Standard	An excellent balance transfer offer of 1.9% p.a. for 12 months and a standard purchase rate of 12.24%	12.24%	17.99%	1.9% for 12 months	$39	0	Apply » More »
HSBC Credit Card	Excellent credit card, with a 0% p.a. for 6 months balance transfer offer, and pay $0 for the life of the card	16.99%	20.75%	0% for 6 months	$0	55	Apply » More »
Citibank Emirates Platinum Card	Enjoy 1.9% p.a. for 12 months on balance transfers as well as earn 3 Skywards Miles for every dollar spent, plus all the benefits & privileges of a platinum card.	20.74%	20.74%	1.9% for 12 months	$229	55	Apply » More »