Bank Australia Visa Credit Card – There are several reasons why you might want to apply for a credit card as an immigrant to Australia. First, it’s really important to start building your credit score when you move to a new country, and you can do that by using a credit card. With a good credit rating, it will be easier for you to get a loan for a house or a car if you decide to stay in Australia for a longer period of time.
A local Australian credit card can be useful when you’re short on cash but need to cover urgent expenses. Shopping is very convenient and there are exciting benefits and rewards when the card is used responsibly.
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Compared to a credit card in your home country, an Australian credit card while living in Australia saves you from paying foreign transaction fees every time you make a purchase. You don’t have to be at the mercy of currency fluctuations, which is not the case when you use a credit card in your home country.
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Getting an Australian credit card as a temporary resident or non-citizen is not always easy, but luckily there are a number of options. You just need to find one that suits your circumstances and needs.
Technically, a credit card is a form of loan that you take out from a bank or lender, which you have to pay back with interest. You can avoid paying interest if your monthly balance is paid off on or before the due date.
Before approving a credit card application, lenders must assess the risk of lending money to the applicant. For this, they have to check the applicant’s income, employment status, credit history, transaction history, etc. to determine the applicant’s ability to repay the loan.
A loan application is likely to be rejected if the applicant has a bad credit history or, if approved, the interest rate is higher than normal rates. So lenders are very careful about who they give credit cards to.
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If you are a newbie starting from scratch in Australia, it is very difficult to provide credit history to credit card issuers. Your credit score in your home country is generally not taken into account. Without that information, it is difficult for lenders to determine your risk profile. Therefore, the eligibility requirements are more stringent than for Australian citizens/permanent residents.
There are different types of visas which are listed on the Australian Government Department of Home Affairs website. These include visitor/holiday visas, student or trainee visas, family or spouse visas, work and business visas, various special visas, refugee and humanitarian visas and many more.
Temporary residents with work visas have a higher chance of being approved for a credit card. Such visas include the temporary work visa (subclass 457) – this was replaced by the temporary skilled shortage (TSS) visa – class 482 in 2018.
Other accepted temporary visas include 408, 403 and 400. Holders of temporary graduate visas (classes 476 and 485), students and trainees (classes 500, 590, 407), refugee and humanitarian visas can also apply for an Australian credit card.
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Permanent resident non-citizens (resident return visa classes 155 and 157) may have the same rights as Australian citizens.
Holders of working holiday visas (classes 417, 462) are not eligible for any card. Other short-term visa holders, transport workers, porters or visitor and transit visa holders are unlikely to qualify.
Spouse visa holders may have difficulty getting approved for a credit card due to lack of a stable source of income due to work restrictions and other reasons. They may qualify as additional cardholders. Remember that the credit card holder is only responsible for repaying the total account balance on the additional cards.
The 482 visa, formerly known as the 457 visa, is a type of temporary visa granted to skilled foreign workers (and their immediate family members) when sponsored by an Australian employer, with a shortage of suitable Australian workers for the workplace . They can stay in Australia for a maximum of 4 years.
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Those who have been in Australia for some time can still hold 457 visas. If you get 457 visas still listed in the credit card application requirements, 482 visas should work.
Temporary resident 457/482 visa holders are offered credit cards by major Australian banks such as Commonwealth Bank, Westpac, ANZ, NAB plus American Express and other overseas banks operating in Australia when they meet the eligibility criteria.
If you do not have a 457/482 visa but have other temporary visas, you should speak to your bank or credit card provider of choice and discuss your options.
Although each credit card issuer has its own requirements for approving your credit card application, the general requirements are below:
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Visa is the most important document you need when applying for a credit card as a non-resident. The banks also expect your visa to be valid for 9 months to 2 years from the application date, depending on the visa type.
When applying for a credit card as a temporary resident, the minimum income requirement starts at $50,000 per year. This is higher than what most Australian citizens need to earn to apply for a credit card (as little as $15,000 a year). This may be because you lack a credit history that is considered a risk for extending credit.
You may be asked to provide your credit history to be approved for a credit card. To increase your chances of being approved, it is important to maintain a good credit score. If you have just arrived in Australia and have not had time to build your credit history, other supporting documents such as utility bill payments, taxes and others can help you confirm your creditworthiness.
Credit ratings vary depending on the credit rating agency. As a rule of thumb, the higher the number, the better your credit score. In our case, we used Experian credit scores; A score above 625 out of 1000 is considered good.
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Must be 18 years old and have proof of Australian residency (utility bills, bank statements etc.)
A credit limit is the maximum amount that a lender allows you to spend on a credit card. The limit is determined by a number of factors, including your income and overall financial situation. Spending over the limit can result in fines. It is important to only borrow what you can afford.
When you first apply for a credit card, your credit limit will likely be lower based on your credit history or income. But when you use your credit card responsibly by paying your bills on time and within your limits, you may eventually be approved for a higher credit limit.
You should check the interest rate that the card issuer charges you. It is a kind of fee that you are charged for the loan. Interest is only charged if the balance is not paid in full. You do not have to pay interest on your loans if the monthly balance is paid in full by the due date.
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Credit card interest is represented by the annual percentage rate (APR). For example, the interest rate varies from 9.99% pa (per annum) to 21.99% pa depending on the card type, transaction type and card issuer.
Credit cards come with a lot of fees if your credit is not managed properly. Be sure to be aware of the various fees that can add up to a significant amount if you’re not careful. There are annual fees, late payment fees, foreign transaction fees, balance transfer fees, cash fees and overdraft fees. Knowing these fees can help you reduce costs or avoid paying them altogether.
A chargeback is a refund of money owed to your credit card issuer, and usually happens every month. Regular and on-time monthly payments are the way to build credit if you’re just starting out. If you are unable to pay the entire balance by the due date to avoid interest, you can at least pay the minimum amount to avoid incurring late fees. There will, however, be interest on the remaining amount.
Let’s compare them by comparing the minimum income required, the sales rate, the balance transfer rate, the annual fee, the loan limit and the offer.
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Always compare your options before applying and know what to look for. Do you want a credit card with no annual fee or a low interest rate, or a card that comes with cashback rewards? Once you’ve decided which one to use, check the card’s eligibility criteria as well as interest rates, fees and other features.
The good news is that many Australian banks or credit card providers offer credit cards to immigrants with no credit.
