Alternatives To Secured Credit Cards

Secured credit cards aren't available in Australia. Compare alternatives below like low-rate credit cards with lower credit limits, or consider becoming an authorised user on another person's credit card.

Nilooka Dissanayake avatar
Written by   |  
Vidhu Bajaj avatar
Edited by   |  
David Boyd avatar
Verified by
Updated 11 Feb 2025   |   Rates updated regularly

Comparing of 8 alternatives to secured credit cards

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 Zero Mastercard

On Bankwest's website

Balance transfer

6 months at 0% p.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

  • No annual fee for the life of the card.
  • 0% p.a. for 6 months on purchases and transferred balances (with a 3% balance transfer fee). Returns to 18.99% p.a. thereafter.
  • Add up to 3 additional cardholders at no extra cost.

Pros & cons

Pros
  • The introductory balance transfer and purchase offers.
  • 18.99% p.a. interest rate on purchases is relatively low.
  • Up to 55 days interest-free 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
  • Balance transfers incur a 3% one-off fee.
  • You cannot earn credit card points on this card.
MONEYME Freestyle Virtual Card

Balance transfer

N/A

Purchase rate

From 18.74% p.a. ongoing

Interest-free days

Up to 55 days on purchases

Annual fee

From $0.00 p.a. ongoing

Details

  • Use virtual card instantly once approved (typically within 60 mins).
  • Tap n Pay with up to 55 days interest-free.
  • Use credit to transfer money to anyone.
  • Exclusive features.
  • Thousands of 5-star customer reviews.

Bank promo

  • Get MONEYME's lowest advertised rate EVER of 18.74% p.a.
  • Annual fee of $0 to $149 p.a. based on credit limit plus a monthly fee of $5 for balances over $20.

Pros & cons

Pros
  • Available to use immediately after approval.
  • Money can be transferred to your bank account.
  • Get cashback at participating stores with Cashrewards.
Cons
  • The maximum credit limit is comparatively low.
  • Combination of annual and monthly fees can be quite expensive for the highest credit limit.
  • There is a 1.5% withdrawal fee.
ANZ First Visa Credit Card

On ANZ's website

Balance transfer

N/A

Purchase rate

20.99% p.a. ongoing

Interest-free days

Up to 55 days on purchases

Annual fee

$0.00 for 1st year

Details

  • Receive $125 cashback when you spend $750 on eligible purchases within 3 months after approval. Terms and Conditions apply. Terms and Conditions apply.
  • The first-year annual fee is waived, saving you $30 upfront.
  • Includes complimentary Purchase Protection and Extended Warranty Insurance.

Pros & cons

Pros
  • Earn $125 cashback with easy-to-meet spending criteria.
  • You can add up to 3 additional cardholders at no extra cost.
  • Offers 24/7 anti-fraud protection, keeping your transactions secure around the clock.
  • The starting credit limit is $1,000, helping you keep your spending in check
  • Compatible with Apple Pay, Google Pay, Samsung Pay, and Garmin Pay
Cons
  • There are no ANZ Rewards or Qantas Points benefits.
  • There are cards with a lower ongoing purchase rate.

Balance transfer

N/A

Purchase rate

11.99% p.a. ongoing

Interest-free days

Up to 55 days on purchases

Annual fee

$59.00 p.a. ongoing

Details

  • The 11.99% p.a. interest rate is low, helping reduce interest costs on carried balances
  • A $59 annual fee keeps costs low and manageable.
  • Add additional cardholders at no extra cost.

Pros & cons

Pros
  • Includes fraud monitoring and ensures you won't be held responsible for unauthorized transactions.
  • Access Mastercard Priceless® Cities for exclusive experiences and special offers.
  • Compatible with Apple Pay, Fitbit Pay, Garmin Pay, Google Pay, and Samsung Pay,
Cons
  • While there are no rewards, it’s ideal for those who value simplicity over perks.
  • There is no introductory Balance Transfer offer at the moment.
Apply by 30 April 2025
Westpac Low Rate Credit Card (Cashback offer)

On Westpac's website

Balance transfer

N/A

Purchase rate

13.74% p.a. ongoing

Interest-free days

Up to 55 days on purchases

Annual fee

$59.00 p.a. ongoing

Details

  • Get up to $350 cashback when you apply online by 30 April 2025. Receive a $50 cashback monthly for spending over $1,000 in the first 7 statement periods.
  • A low 13.74% p.a. interest rate on purchases helps keep costs manageable.
  • Split purchases over $100 into 4 payments over 6 weeks with PartPay, making it easier to manage larger expenses.

Pros & cons

Pros
  • Get up to $350 cashback when you meet the criteria.
  • The $59 p.a. annual fee keeps costs low, with no fee in the first year if you're already with Westpac.
  • Start with a credit limit as low as $500, helping you manage your spending.
  • Supports Apple Pay, Google Pay, and Samsung Pay.
Cons
  • No rewards program although there is a cashback offer.
  • No complimentary travel insurance, which is typical for a low-rate card.
ANZ Low Rate Credit Card

On ANZ's website

Balance transfer

30 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

  • 0% p.a. for 30 months on balance transfers with a 3% balance transfer fee (then reverts to 21.99% p.a.) Terms and Conditions apply.
  • The first-year annual fee is waived, saving you $58 upfront
  • Offers the option to repay eligible purchases in 3, 6, or 12-month instalments.

Pros & cons

Pros
  • Long 0% balance transfer period to tackle existing debt.
  • Get a continuous low rate of 13.74% p.a. on purchases.
  • You can add up to 3 additional cardholders at no extra cost.
  • Offers 24/7 anti-fraud protection, keeping your transactions secure around the clock.
  • The starting credit limit is $1,000, helping you keep your spending in check
  • Compatible with Apple Pay, Google Pay, Samsung Pay, and Garmin Pay.
Cons
  • There is a 3% BT fee.
  • No rewards program, which is expected for a low-rate card focused on affordability
  • No purchase or travel insurance is included.

Wizitcard Credit Card

Wizitcard Credit Card

Balance transfer

N/A

Purchase rate

0% p.a. ongoing

Interest-free days

N/A

Annual fee

$228.00 p.a.

Details

  • Save money and stay in control with a 0% interest rate forever.
  • A practical alternative to traditional credit cards and buy now, pay later options.
  • Get an instant digital card and start using it right away.

Pros & cons

Pros
  • The $19 monthly fee simplifies costs compared to an annual fee.
  • No ongoing fees or charges when the card isn’t in use or has no balance.
  • Get a credit limit ranging from $500 to $1,000.
  • Know your repayments in advance which makes budgeting easier.
  • Supports Apple Pay and Google Pay.
Cons
  • There is a $1 late payment fee.
  • While modest, the $1,000 limit suits controlled budgets.
Can you get a secured credit card in Australia?

Can you get a secured credit card in Australia?

No, secured credit cards are not available in Australia at the time of writing, but they are available in the US, Canada, UK, and other markets. They are designed for individuals with low credit scores or limited credit history. To open an account, the cardholder must provide a security deposit (usually held by the bank) to act as collateral.

In Australia, credit cards are unsecured, meaning approval is based on your creditworthiness, and no collateral or cash deposit is required. Your credit limit is determined by your income, credit score, and financial history.

What is a secured credit card?

What is a secured credit card?

A secured credit card requires a refundable security deposit, which acts as collateral for the credit limit. These cards are typically offered to individuals with limited credit histories, providing an opportunity to build credit by demonstrating responsible usage and timely payments. As these cards require you to pay a security deposit, they may be relatively easier to qualify for than other credit card types.

Key features of secured credit cards

  • Security deposit. Secured credit cards require you to provide a small security deposit to use the card. This amount is typically also linked to the card’s credit limit.
  • May help build credit. A secured credit card is often used by individuals with low credit scores or limited credit histories. By using the credit card responsibly, they can build their credit history over time and become eligible for a standard credit card and other types of credit
  • Interest charges apply. Apart from the security deposit, a secured credit card works exactly like a regular credit card. Cardholders can make purchases and pay off balances monthly. If the entire balance isn’t repaid, interest accrues on the remaining amount.
How secured credit cards work

How secured credit cards work

Secured credit cards function similarly to standard credit cards but require a security deposit as collateral. This deposit reduces the lender’s risk and allows individuals with low credit scores or limited credit history to access credit. If a payment is missed or the account defaults, the issuer may use the security deposit to cover the outstanding balance.

Require a refundable deposit

Cardholders must deposit funds (e.g., $100–$200 or more), which determines their credit limit.

Report to credit bureaus

Responsible use, such as paying on time, can help improve a person’s credit score over time.

Operate like a standard credit card

They allow purchases up to the available credit limit, with repayments due each month.

Come with interest charges

If the entire balance isn’t paid by the due date, interest accrues on the outstanding amount.

Alternative secured credit card options in Australians

Alternative secured credit card options in Australians

If you’re a young Australian or someone who has just started working, you may have a limited credit history and, as a result, a lower credit score. In many countries, providing a small security deposit allows individuals to access secured credit cards, which not only offer credit but also help build a credit history when used responsibly. However, secured credit cards are not available in Australia at the time of writing. That said, there are still plenty of options for accessing credit and improving your credit score.

Various financial providers offer unsecured credit cards that cater to different needs. If you’re getting your first credit card, you may want to consider a basic, no-frills card with low interest rates and a low or no annual fee. If your credit history is limited and your credit score is low, a low-limit credit card can be a good option. By spending responsibly and paying your bills in full and on time, you can gradually improve your credit score.

However, if your credit score is low due to past financial difficulties or you struggle with impulse spending, it’s essential to consider whether an unsecured credit card is the right choice for you. A credit card is ultimately a form of credit, and if not managed responsibly, it can negatively impact your credit score.

If you're applying for your first credit card or wondering whether you can access credit with a limited credit history, here are some options you may consider.

  • Low-limit credit cards. Some banks offer entry-level credit cards with low credit limits and basic features like low rate credit cards. These cards often have low credit limits and may be easier to qualify for. These cards may also be suitable for students or first-time credit users with limited credit history.
  • Secured personal loans. Instead of a secured credit card, you may be able to take out a personal loan backed by a savings account, term deposit, or asset. Regular repayments help build a strong repayment history. However, the choice between a personal loan and a credit card should depend on your specific financial needs—whether you require a one-time lump sum or ongoing credit access.
  • Becoming an authorised user. Some banks allow individuals to be added as secondary cardholders on an existing credit account to help build their credit history. Not to be confused with a joint credit card.
Credit Card Compare expert tip on an alternative to secured credit cards

Credit Card Compare expert tip on an alternative to secured credit cards

Andrew Boyd, co-founder of Credit Card Compare

Andrew Boyd, co-founder of Credit Card Compare shares alternatives to secured credit cards in Australia:

A stable job and regular salary can improve your chances of getting approved for a credit card. Start with a low-limit, low-interest option to build your credit history responsibly. Paying your balance in full each month helps avoid interest charges and boosts your credit score over time.
Strategies for building credit without a secured credit card

Strategies for building credit without a secured credit card

Your credit score plays a crucial role in determining your eligibility for credit products. While responsibly repaying a loan or credit card can help build your credit history, many lenders require a good credit score before approving these products. If you're planning to apply for credit, one of the first steps you should take is checking your credit score.

If your credit score isn’t as high as you'd like, here are some ways to improve it:

  • Pay bills and debts on time. Late or missed payments can lower your score. Setting up direct debits can help ensure timely payments.
  • Avoid multiple credit applications in a short period. Every application is recorded on your credit file, and too many in a row can negatively impact your score.
  • Regularly check your credit report for errors. You can request a free copy of your credit report once a year from each of the credit reporting bureaus. If you spot an error, dispute it with the provider or notify the credit bureau to have it corrected.

If you're new to credit and looking to establish a credit history, you may also consider putting utility bills (electricity, gas, water) in your name and ensuring they’re paid on time. Another option could be asking your parents to add you as a secondary cardholder on their credit card. However, be sure to use the card responsibly, as any missed payments could negatively impact your (and their) credit score.

In general, by keeping track of your credit score and managing credit responsibly, you can improve your chances of securing a loan or credit card when you need one.

What Australians think about unsecured credit cards

What Australians think about unsecured credit cards

Unsecured credit cards are not currently available in Australia, but you may still qualify for a credit card if you have a stable income and can demonstrate your ability to repay the balance.

On getting a credit card with no credit history, one Redditor suggests that approval often depends on steady income and minimal expenses. If you're not paying rent, banks may factor that in when assessing affordability:

"You apply. You show them payslips. If you’re not paying rent, there’s an option to say you’re living with parents. They ask about that so they can factor in your rent payments to determine if you can service the facility. If you have steady income and minimal expenses, they’ll lend to you."

For first-time credit card users, another Redditor advises starting with a small limit and a low-interest card rather than chasing rewards, which may not be worthwhile unless you're spending and repaying large amounts:

"First timers smallest limit. Do u have self-control? Sure, points may have helped, but so would 10c from recycling a single bottle. IMHO, unless you are going to put thousands of dollars through it monthly and always pay it off, get a low-interest card and see what you are like with it. I use McGrath 8.99%—no BS, no real perks. Living off credit to get .01% back is a trap."

These comments highlight a common theme: credit cards can be useful, but only if used wisely. For first-time applicants, having a stable income and controlled spending habits can improve approval chances and prevent financial traps.

Help choosing a secured credit card alternative

More about the ins and outs of applying for an alternative to a secured credit card.

  • FAQs

  • Pros & cons

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  • Hints & tips

  • Why trust us

Can secured credit cards help bankrupt individuals rebuild their credit history?

In the United States, banks and lenders use credit scoring systems to assess a customer’s financial reliability. It is common for individuals who have declared bankruptcy to apply for a secured credit card as a way to rebuild their credit history.

With a secured credit card, repayment activity is reported to credit bureaus, meaning consistent, on-time payments can help gradually improve a person’s credit score over time.

What's the difference between a secured credit card and a secured debit card?

A secured credit card provides a line of credit that can be used for purchases, with repayments made over time. To qualify, the cardholder must provide a cash deposit or other security, which serves as collateral. Since it is a form of credit, usage and repayments are reported to credit agencies, impacting the cardholder’s credit score.

A secured debit card, on the other hand, is directly linked to a transaction account and allows the cardholder to spend only the money they have available. Since debit cards do not involve borrowing, they do not affect a person’s credit score and are typically available regardless of an individual’s financial history.

Where are secured credit cards available?

Secured credit cards are widely available in North America, particularly in the United States and Canada, where they are commonly used by individuals looking to establish or rebuild their credit history.

In the United Kingdom and some other markets, secured credit cards exist but are far less common and are gradually being phased out.

Why aren’t secured credit cards offered in Australia?

Australian credit laws do not currently support secured credit cards, which is why no local banks or lenders provide them.

Some Australian banks, such as ANZ, offer secured credit cards through their international branches, including in Guam and Singapore, but not within Australia.

Who are secured credit cards suited to?

Secured credit cards are typically designed for individuals with poor or limited credit history who want to rebuild their credit score through responsible use. However, these cards are not available in Australia, so those looking to improve their credit profile will need to explore alternative options.

Pros

Controlled spending

The security deposit limits spending, reducing the risk of accumulating unmanageable debt.

Higher approval rates

More accessible to those who may not qualify for standard credit cards.

Credit-building potential

Can help individuals with poor or no credit history establish a positive repayment record.

Cons

Tied-up funds

The required security deposit means you need upfront cash that remains locked for a set period.

Not available in Australia

Australian banks do not currently offer secured credit cards.

Higher fees and interest rates

Many secured credit cards come with annual fees and higher interest rates than standard credit cards.

Buy Now, Pay Later (BNPL)

While not a direct alternative, responsible use of BNPL services can demonstrate positive repayment behaviour.

Debit cards with credit features

Some transaction accounts come with Visa or Mastercard debit cards that offer similar payment convenience without requiring a credit check.

Low-limit credit cards

Some banks offer entry-level credit cards with lower credit limits, making them more accessible to applicants with limited credit history.

Becoming an authorised user

If a family member or partner has a credit card, you may be able to be added as an additional cardholder to benefit from their responsible credit use.

Consider alternatives

In Australia, focusing on responsible credit use with other financial products can help build your credit history.

Monitor your credit score

Regularly check your credit report to track improvements and spot any errors.

Compare options carefully

If you're considering a secured credit card overseas, check the fees, interest rates, and deposit requirements.

Sources

  1. Buy Now Pay Later — Financial Rights
  2. Credit card financial assistance — Australian Banking
  3. Credit card lending in Australia — APO
  4. Financial hardship – Moneysmart
  5. Loans and credit cards – ASIC
  6. Managing debt – Moneysmart
  7. Number of credit cards in use in Australia — Statista
  8. Responsible lending — ASIC

    As seen on

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