Low income credit cards

What is a low income credit card?

You can still be eligible for a credit card on a low income, though your options are more limited. Many cards set a minimum income, with some starting as low as $15,000 a year. Where no income is stated, you still need to meet the lender's other criteria, like credit history, employment and ability to repay.

Low income cards are basic, no-frills options that are easier to access. They skip premium perks like frequent flyer points, travel insurance and lounge access, but their low fees and rates make them useful for everyday spending without high costs.

What to consider on a low income

Check the minimum income and which income types count, since some providers don't count certain government payments. Look for low or no annual fees, and watch late payment, cash advance and international transaction fees.

A lower purchase rate matters if you can't always pay in full, and more interest-free days give you extra time to pay without interest. Don't expect rewards or travel perks on these cards. If keeping costs down is the priority, compare no annual fee cards and low rate cards.

Managing a card wisely on a low income

Use the card for essentials like groceries and bills rather than discretionary spending, and try to pay the balance in full each month. If you can't, make more than the minimum and always pay on time to avoid late fees.

Keep your balance well below your limit: staying under about 30% of it helps your credit score by keeping your utilisation low. Set reminders or automatic payments so you never miss a due date.

Is a credit card worth it on a low income?

It can be. Beyond everyday spending, responsible use builds your credit score, which opens doors later, like buying a car or a home.