Credit Cards For Pensioners

Compare credit cards for pensioners, retirees, and seniors that are easy to be eligible for. Although there are no specific pensioner credit cards in Australia, many cards suit pensioners, offering no or low fees and low interest rates.

David Boyd avatar
Written by
Updated 11 Dec 2024   |   Rates updated regularly

Comparing of 9 credit cards for pensioners

Featured
Bankwest Breeze Mastercard

On Bankwest's website

Balance transfer

24 months at 0% p.a.

Purchase rate

12.99% p.a. ongoing

Interest-free days

Up to 55 days on purchases

Annual fee

$49.00 p.a. ongoing

Details

  • Get 0% p.a. interest on balance transfers for 24 months, with a 3% balance transfer fee (then 12.99% p.a. thereafter).
  • An annual fee of $49 p.a., making it an affordable option.
  • Add up to 3 additional cardholders at no extra cost.

Pros & cons

Pros
  • 0% p.a. on balance transfers for 24 months.
  • Low ongoing interest rate of 12.99% p.a. on purchases.
  • Up to 55 interest-free days on purchases.
  • As low as a $1,000 credit limit.
  • Temporarily lock your card anytime using the Bankwest App.
  • Easy Instalment Plans let you spread up to 5 purchases over four monthly payments at 0% p.a.
  • Compatible with Apple Pay, Google Pay and Samsung Pay.
Cons
  • No rewards program on this card.
  • The 3% BT fee.
  • There is a 2.95% foreign transaction fee.
Bankwest Breeze Platinum Mastercard

On Bankwest's website

Balance transfer

24 months at 0% p.a.

Purchase rate

12.99% p.a. ongoing

Interest-free days

Up to 55 days on purchases

Annual fee

$59.00 p.a. ongoing

Details

  • Get 0% p.a. interest on balance transfers for 24 months, with a 3% balance transfer fee (then 12.99% p.a. thereafter).
  • No foreign transaction fees.
  • Plus, complimentary overseas travel insurance for you and your family.

Pros & cons

Pros
  • 0% p.a. on balance transfers for 24 months.
  • Low ongoing interest rate of 12.99% p.a. on purchases.
  • Low annual fee of $59 p.a.
  • Add up to 3 additional cardholders at no extra cost.
  • Up to 55 interest-free days on purchases.
  • As low as a $6,000 credit limit.
  • Temporarily lock your card anytime using the Bankwest App.
  • Easy Instalment Plans let you spread up to 5 purchases over four monthly payments at 0% p.a.
  • Compatible with Apple Pay, Google Pay and Samsung Pay.
Cons
  • No rewards program on this card.
  • There is a 3% BT fee.
  • Cash advance rate is 21.99% p.a.
Apply by 30 April 2025
St.George Vertigo Visa Credit Card

On St.George's website

Balance transfer

24 months at 0% p.a.

Purchase rate

13.99% p.a. ongoing

Interest-free days

Up to 55 days on purchases

Annual fee

$55.00 p.a. ongoing

Details

  • Get a 0% interest rate on balance transfers for 24 months with a 1% transfer fee. After that, the rate changes to 21.99% p.a. for cash advances.
  • Start with a credit limit as low as $500, helping you keep your spending in check.
  • Add 1 additional cardholder at no extra cost.

Pros & cons

Pros
  • Get a limited edition exclusive rainbow design card.
  • A 13.99% p.a. variable rate keeps interest costs lower on purchases.
  • Low annual fee of $55 p.a.
  • Offers fraud monitoring, secure online shopping, and a Fraud Money Back Guarantee.
  • Works with Apple Pay, Google Pay, and Samsung Pay.
Cons
  • Note that the balance transfer rate reverts to 21.99% p.a. after 24 months.
  • The 1% balance transfer fee is low but it can add up with large transfers
  • No rewards program which is typical for a basic card.

Balance transfer

N/A

Purchase rate

19.99% p.a. ongoing

Interest-free days

Up to 55 days on purchases

Annual fee

$149.00 p.a. ongoing

Details

  • Accrue 0.6 Qantas Points for every $1 spent.
  • Benefit from 180 days of thorough travel insurance.
  • Comes with an extended warranty for eligible purchases and 90-day purchase protection for items stolen or accidentally damaged (terms apply).

Pros & cons

Pros
  • Earn 0.6 Qantas Points per $1 spent.
  • Free Qantas Frequent Flyer membership.
  • 180 days of comprehensive travel insurance.
  • Up to 55 days interest-free.
Cons
  • There is no introductory balance transfer offer or purchase rate offer.
  • The 20,000 cap on reward earnings per statement period.
  • ATO spend does not earn points.
Apply by 30 April 2025

Balance transfer

24 months at 0% p.a.

Purchase rate

13.99% p.a. ongoing

Interest-free days

Up to 55 days on purchases

Annual fee

$55.00 p.a. ongoing

Details

  • Get a 0% interest rate on balance transfers for 24 months with a 1% transfer fee. After that, the rate changes to 21.99% p.a. for cash advances.
  • Start with a credit limit as low as $500, helping you keep your spending in check.
  • Add 1 additional cardholder at no extra cost.

Pros & cons

Pros
  • A 13.99% p.a. variable rate keeps interest costs lower on purchases.
  • Low annual fee of $55 p.a.
  • Offers fraud monitoring, secure online shopping, and a Fraud Money Back Guarantee.
  • Works with Apple Pay, Google Pay, and Samsung Pay.
Cons
  • Note that the balance transfer rate reverts to 21.99% p.a. after 24 months.
  • The 1% balance transfer fee is low but it can add up with large transfers
  • No rewards program which is typical for a basic card.
Apply by 30 April 2025

Balance transfer

24 months at 0% p.a.

Purchase rate

13.99% p.a. ongoing

Interest-free days

Up to 55 days on purchases

Annual fee

$55.00 p.a. ongoing

Details

  • Get a 0% interest rate on balance transfers for 24 months with a 1% transfer fee. After that, the rate changes to 21.99% p.a. for cash advances.
  • Start with a credit limit as low as $500, helping you keep your spending in check.
  • Add 1 additional cardholder at no extra cost.

Pros & cons

Pros
  • A 13.99% p.a. variable rate keeps interest costs lower on purchases.
  • Low annual fee of $55 p.a.
  • Offers fraud monitoring, secure online shopping, and a Fraud Money Back Guarantee.
  • Works with Apple Pay, Google Pay, and Samsung Pay.
Cons
  • Note that the balance transfer rate reverts to 21.99% p.a. after 24 months.
  • The 1% balance transfer fee is low but it can add up with large transfers
  • No rewards program which is typical for a basic card.
ANZ Low Rate Credit Card

On ANZ's website

Balance transfer

28 months at 0% p.a.

Purchase rate

13.74% p.a. ongoing

Interest-free days

Up to 55 days on purchases

Annual fee

$0.00 for 1st year

Details

  • Enjoy 0% p.a. for 28 months on balance transfers with a 3% balance transfer fee (then reverts to 21.99% p.a.) Terms and Conditions apply.
  • First-year annual fee waived ($58 subsequently).
  • Continuous low rate of 13.74% p.a. on purchases.
  • Enjoy up to 55 days interest-free on purchases by settling your account completely each month.

Pros & cons

Pros
  • Enjoy 0% p.a. on balance transfers up to 28 months.
  • $0 annual fee for the first year ($58 p.a. thereafter).
  • Take advantage of the low purchase interest rate of 13.74% p.a.
  • Add up to 3 additional cardholders at no extra cost.
Cons
  • No purchase or travel insurance included.
  • No rewards program.
Virgin Money No Annual Fee Credit Card

On Virgin Money's website

Balance transfer

N/A

Purchase rate

6 months at 0% p.a.

Interest-free days

Up to 55 days on purchases

Annual fee

$0.00 p.a. ongoing

Details

  • A straightforward card with a $0 annual fee.
  • 0% p.a. for 6 months on purchases (reverts to 19.99% p.a.).
  • Comes with the usual security features such as Fraudshield, Zero Liability policy and more.

Pros & cons

Pros
  • No annual fee ever.
  • Up to 4 additional cards, also with a $0 annual fee.
  • Access to promos of merchant partners using the Virgin Money app.
  • Get up to a $100,000 credit limit for big purchases and expenses.
Cons
  • The revert interest rate for purchases is relatively high.
  • There’s no introductory balance transfer offer, but it’s offset by a competitive purchase rate offer.
Apply by 3 March 2025

Balance transfer

15 months at 0% p.a.

Purchase rate

13.49% p.a. ongoing

Interest-free days

Up to 55 days on purchases

Annual fee

$58.00 p.a. ongoing

Details

  • 0% on balance transfers for 15 months, after which it returns to the cash advance rate of 20.74% p.a.
  • A modest annual fee of $58 p.a.
  • Earn 1 Flybuys Point for every $2 spent at Coles Supermarkets.

Pros & cons

Pros
  • A low 13.49% p.a. interest on purchases.
  • Earn 1 point for every $2 on purchases at Coles Supermarkets
  • Get access to complimentary insurance.
  • Add up to 4 additional cardholders at no extra cost.
  • Instalment plans are available for large purchases.
  • Up to 55 interest-free days on purchases.
  • Includes Coles Shield for fraud protection.
  • Supports Apple Pay, Samsung Pay, and Google Pay.
  • Credit limit ranges from $1,000 - $100,000.

Cons
  • There is a 1.5% balance transfer fee.
  • You can only earn Flybuys points at Coles Supermarkets.
  • No interest-free days while you have a balance transfer.

Although pensioners can get a credit card, the process is more difficult than for Australians with a full-time salary. Age discrimination in the credit card application process is a well-known and increasing problem for older Australians.

The primary reason behind this is that banks generate less revenue from retirees, who often pay their balances before the due date to avoid interest charges—the most financially savvy way to use a credit card. Retirees without a steady income may face challenges when applying for a credit card, but approval is still possible with the right approach and understanding of the application process.

David Boyd, co-founder of Credit Card Compare

David Boyd, co-founder of Credit Card Compare, explains, "It is more challenging for a pensioner applying for a credit card when you rely on a pension as your primary source of income. The banks tend to consider pensioners to be similar to people on a low income or unemployed. Expect to have to present details of your assets and to have a low credit limit if approved."

Types of credit cards for pensioners

  • Low rate cards: Suitable for pensioners looking to minimise interest costs on balances carried forward each month. May offer an introductory low or 0% interest rate for a specified period.
  • Rewards cards: Provide opportunities to earn frequent flyer points, cashback, or other rewards on eligible purchases. They can be used for everyday spending so long as you pay the balance off in full on each statement.
  • No annual fee cards: A credit card with no annual fee typically has no frills or additional benefits. They are worth considering since no cost is associated with keeping these credit card accounts open.

What to consider when choosing the best credit card for pensioners

There are several things you need to consider and think about what credit card suits you best and your financial needs before applying:

  • Interest rates: Select a competitive card, especially if you anticipate carrying a balance.
  • Fees: Consider annual fees, late payment fees, foreign exchange fees (on overseas purchases) and other charges associated with the card.
  • Rewards and benefits: Research the rewards program and additional perks the card issuer offers. If you are unsure you'll use all the bells and whistles, don't apply.
  • Credit limit: Ensure that the credit limit aligns with your financial capacity to make repayments.
  • Eligibility criteria: Check the eligibility requirements, including age restrictions and income criteria.
Andrew Boyd, co-founder of Credit Card Compare

Andrew Boyd, co-founder of Credit Card Compare, explains, "If you want to play it safe, look for credit cards with low fees, low rates, and no frills or additional benefits. Check your credit score before applying and address any issues it may raise."

How to apply for a credit card as a pensioner

To apply for a credit card as a pensioner, follow these steps.

  1. Assess your financial situation: Review your income, expenses, and credit history to determine your borrowing capacity.
  2. Research: Compare various credit card options available for pensioners and choose a card that best suits your needs.
  3. Gather documentation: Prepare necessary documents such as identification, proof of income, and recent bank statements.
  4. Submit application: Complete the application form provided by the card issuer and submit it online or in person.
  5. Wait for approval: Allow time for the card issuer to process your application and notify you of their decision.

Note that the bank may try to contact you for more information before they can make a decision.

Help choosing a credit card for pensioners

Unlock the benefits of credit cards tailored for pensioners.

  • FAQs

  • Pros & cons

  • Alternatives

  • Why trust us

Can you qualify for a credit card with a small pension?

Yes, pensioners with a low income can still qualify for certain credit cards, such as low limit cards or basic entry-level cards. These options may have more flexible eligibility requirements and can help pensioners build or rebuild their credit history.

How can pensioners improve their chances of getting approved for a credit card?

Pensioners can improve their chances of credit card approval by maintaining a good credit score, demonstrating responsible financial behaviour, and providing accurate and up to date financial information when applying for a card.

Are there any credit cards designed for Australian pensioners?

While there are no specific credit cards exclusively designed for pensioners in Australia, pensioners can choose from a range of cards offered by various financial institutions that cater to different needs, preferences and financial circumstances.

If as a pensioner you are having trouble getting a credit card, try to select from among these types of credit cards to improve your chances of approval:

  • Low rate credit cards: Pensioners can save substantial amounts on interest costs monthly by opting for a low rate credit card. While they may be lacking in the variety of perks and benefits that regular credit cards offer, you can still enjoy some of the conveniences and benefits of having a credit card.
  • No annual fee or low annual fee credit cards: Applying for a low or no annual fee credit card can help pensioners save money while enjoying many of the benefits of a credit card.
  • Low income credit cards: Statistics show that the full pensions for Australians including supplements is lower than the income of an average Australia. Australian pensioners can increase their chances of credit card approval by applying for credit cards for low income groups.

Can a self-funded retiree get a credit card?

You may be able to get a credit card if you are retired, as long as the lender believes that you are able to make your monthly repayments and you fulfil all of their other lending criteria. It is important to note that each lender uses their own criteria, and they will take your individual circumstances into account.

Although not available in Australia, some countries allow people with insufficient incomes to get secured credit cards. These are credit cards backed by some collateral held with the issuer, such as a fixed deposit account.

What is the age limit for applying for a credit card?

There is no maximum age limit for credit cards in Australia. The only age requirement included on all credit cards is that applicants must be at least 18 years of age. But banks and credit card issuers must consider your ability to repay a credit card over time, so factors including your income, financial situation and your age can affect the assessment.

What is the minimum income for a pensioner to get a credit card?

Credit cards suitable for pensioners typically have minimum income requirements ranging from $15,000 to $35,000. If you have additional income sources, you may be able to consider a broader range of credit cards as a retiree.

Do Centrelink payments count as income when you apply for a credit card?

Pension payments from Centrelink are generally counted towards a credit card's income requirement, and superannuation or other investments may also be considered. However, each credit card has different requirements, so it's best to check the details listed for a specific card or contact the provider directly to determine exactly what is considered income.

Pros

Financial accessibility

Credit cards provide crucial financial access, enabling purchases, bill payments, and handling of unexpected expenses without the immediate cash outlay, thus offering a layer of financial flexibility and security.

Credit history maintenance

For pensioners looking to maintain or improve their credit history, responsibly using a credit card can help. Timely payments and prudent use of credit can positively impact credit scores, which is beneficial for any future credit applications.

Rewards and perks

Although it is more difficult, pensioners can be approved for credit cards offering rewards and lucrative perks such as complimentary insurance, travel credits, and lounge access.

Cons

Eligibility hurdles

Getting approved for a credit card as a pensioner can be challenging. Additional documentation as proof of income and assets may be required.

Risk of debt

The convenience of a credit card comes with the risk of accruing debt, particularly if used for non-essential spending or in emergencies without a clear plan for repayment.

Limited choice

While various credit cards are available for pensioners, there are none designed with the needs of pensioners specifically in mind.

Debit cards

Linked to your bank account, allowing spending only what is available in the account. This prevents debt accumulation and often comes with no annual fees.

Prepaid cards

You preload funds onto these cards, which can then be used for purchases up to the loaded amount. This helps in budgeting and controlling expenses without accruing interest.

Low-rate personal loans

For larger, specific purchases or consolidating existing debts, a low-rate personal loan can offer a structured repayment plan with lower interest rates than credit cards.

Reverse mortgages

A financial product designed for older Australians to draw on the equity in their homes for additional income, though it's important to consider the long-term implications carefully.

Seniors cards

Offered by state and territory governments, these cards can provide discounts on goods and services, reducing the need for credit card use for savings.

Centrelink advances

Eligible pensioners can receive advance payments of their pension, which is then repaid interest-free out of future payments, providing a cash flow solution without external debt.

Sources

    As seen on

    Media - The Sydney Morning Herald
    Media - Yahoo Finance
    Media - News.com.au
    Media - Daily Mail Australia
    Media - Australian Fintech
    Media - Dynamic Business