Student Credit Cards

Compare student credit cards in Australia at university and TAFE who can apply for a credit card with low interest rates and fees to build credit.

By Verified by Andrew Boyd   |   Updated 9 Oct 2024

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Comparing of 6 student credit cards

Bankwest Breeze Mastercard

On Bankwest's website

Balance transfer

12 months at 0% p.a.

Purchase rate

12 months at 0% p.a.

Interest-free days

55 days

Annual fee

$49.00 p.a. ongoing

Highlights

  • Get 0% p.a. interest on balance transfers for 12 months (2% BT fee applies, then 12.99% p.a.), plus 0% p.a. for 12 months on purchases (reverting to 12.99% p.a.).
  • Enjoy up to 55 interest-free days on purchases.
  • Available to new customers for a limited time. T&Cs and fees apply.

Pros

  • 0% p.a. on balance transfers for 12 months.
  • 0% p.a. for 12 months on purchases.
  • Up to 55 interest-free days on purchases.

Cons

  • There are no rewards on this card.
  • There is a 2% BT fee.
Bankwest Zero Mastercard

On Bankwest's website

Balance transfer

28 months at 0% p.a.

Purchase rate

14.99% p.a. ongoing

Interest-free days

55 days

Annual fee

$0.00 p.a. ongoing

Highlights

  • Avoid annual fees for the duration of card ownership.
  • 0% p.a. for 28 months on transferred balances (with a 3% balance transfer fee). Returns to 14.99% p.a. thereafter.
  • Enjoy up to 55 days interest-free on purchases.
  • Offer exclusive to new customers for a limited time. Additional fees and charges, as well as terms and conditions, apply.

Pros

  • There is no annual fee for as long as you keep the card.
  • The current balance transfer offer is extremely competitive.
  • Interest on purchases is comparatively low.

Cons

  • Balance transfers incur a one-off fee.
  • You cannot earn credit card points.
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

55 days

Annual fee

$0.00 for 1st year

Highlights

  • 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

  • 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.
St.George Vertigo Visa Credit Card (0.99% p.a. interest on BT for 28 months)

On St.George's website

Balance transfer

28 months at 0.99% p.a.

Purchase rate

13.99% p.a. ongoing

Interest-free days

55 days

Annual fee

$55.00 p.a. ongoing

Highlights

  • Benefit from a 28-month 0.99% interest period on Balance Transfers, with no balance transfer fee. Afterward, it switches to a cash advance rate of 21.99% p.a.
  • Enjoy a low variable interest rate of 13.99% p.a. on purchases.
  • The annual fee remains low at $55 p.a.

Pros

  • 0.99% p.a. for 28 months on balance transfers with no balance transfer fee.
  • 13.99% p.a. low variable interest rate on purchases.
  • Low annual fee of $55 p.a.

Cons

  • Balance transfer rate reverts to 21.99% p.a. after 28 months.
  • There are no rewards program for this card.
Westpac Low Rate Cashback Credit Card

On Westpac's website

Apply by 30 November 2024

Westpac Low Rate Cashback Credit Card

Balance transfer

N/A

Purchase rate

13.74% p.a. ongoing

Interest-free days

55 days

Annual fee

$59.00 p.a. ongoing

Highlights

  • Get up to $350 cashback when you apply online by 30 November 2024. Receive a $50 cashback monthly for spending over $1,000 in the first 7 statement periods.
  • Enjoy a low ongoing 13.74% p.a. interest rate on purchases.
  • Annual fee of $59 p.a. applies.

Pros

  • Get up to $350 cashback when you meet the criteria.
  • Low 13.74% p.a. interest rate on purchases.
  • 55 days interest-free on purchases.
  • $500 minimum credit limit.

Cons

  • No rewards program although there is a cashback offer.
  • No complimentary travel insurance.
BankSA Vertigo Credit Card (0.99% p.a. interest on BT for 28 months)

On BankSA's website

Balance transfer

28 months at 0.99% p.a.

Purchase rate

13.99% p.a. ongoing

Interest-free days

55 days

Annual fee

$55.00 p.a. ongoing

Highlights

  • Benefit from a 28-month 0.99% interest period on Balance Transfers, with no balance transfer fee. Afterward, it switches to a cash advance rate of 21.99% p.a.
  • Enjoy a low variable interest rate of 13.99% p.a. on purchases.
  • The annual fee remains low at $55 p.a.

Pros

  • 0.99% p.a. for 28 months on balance transfers with no balance transfer fee.
  • 13.99% p.a. low variable interest rate on purchases.
  • Low annual fee of $55 p.a.

Cons

  • Balance transfer rate reverts to 21.99% p.a. after 28 months.
  • There is no rewards program for this card.

A student credit card allows you to make purchases and defer payments while attending university or TAFE. The card will charge interest or a monthly fee, depending on how long you take to repay your spending.

Although no credit cards are specifically designed for students in Australia, many cards are well-suited to students' needs. These include cards with low interest rates and minimal fees, which can help minimise expenses during your studies. By comparing the available options, you can find a credit card that aligns with your financial situation and helps you manage your spending while pursuing your education.

David Boyd, co-founder of Credit Card Compare

David Boyd, co-founder of Credit Card Compare, explains, "If you're a university or TAFE student looking to get your first credit card, look out for entry level cards that forego the rewards and bonuses of higher level cards and focus on affordability and practicality. Since students typically need to manage their finances carefully, look for low annual fees and low interest rates to save where you can. Use a credit card responsibly, build credit, and give yourself the option of applying for a better credit card later when you have the income and credit report to support it."

Why credit cards are useful for students in Australia

Student credit cards provide a stepping stone for young adults with lower incomes to build their credit history. Here are some key reasons why student credit cards are useful.

  • Building credit history: By using a student credit card responsibly, students can establish a positive credit history from an early age.
  • Financial education: Credit cards offer an opportunity to learn about budgeting, managing expenses, and understanding the implications of debt.
  • Emergency fund: A credit card can provide a financial safety net in case of unexpected expenses or emergencies.
  • Convenience: Shopping online, booking travel, and handling day-to-day expenses is generally easier using a card.

How student credit cards work

A student credit card functions like a regular credit card, but generally have lower credit limits and a fee structure to match.

  • Credit limit: Student credit cards often have lower credit limits than standard credit cards to help manage spending. Some of the easy approval credit cards are most applicable to students.
  • Fees: Many student credit cards have lower fees or no annual fees to make them more accessible to students.
  • Benefits: Some student credit cards offer rewards or cashback incentives for specific categories such as groceries, textbooks or frequent flyer points.
  • Qualifications: You may need to demonstrate enrollment in a university or college to qualify.
  • Responsibility: It's essential for students to use their credit cards responsibly to avoid accumulating debt and damaging their credit scores.

Eligibility requirements for student credit cards

Applicants must meet certain eligibility criteria to qualify for a student credit card. These requirements may include:

  • Age: Applicants must be at least 18 years old. If you aren't old enough, don't apply.
  • Income: Students should meet the minimum income as required by the card's minimum criteria for eligibility. You may need to provide proof of income such as a bank statement.
  • Credit history: Younger students may have limited or no credit history, but applying with bad credit makes it considerably more likely to be declined.

What to consider when choosing the best student credit card

As a student exploring credit card options, weigh up the key factors before applying for a card.

  • Interest rates: Compare the interest rates offered by different cards to ensure you get a competitive rate. Lower is better in case you end up carrying a balance.
  • Fees: Check for any annual fees, late payment fees, or other charges associated with the card.
  • Credit limit: Consider the credit limit provided and ensure it matches your spending requirements.
  • Rewards and benefits: It's highly unlikely for a student credit card to earn rewards points or come with travel benefits.

Help choosing a student credit card

Discover the essentials of student credit cards for a brighter future.

  • FAQs

  • Pros & cons

  • Alternatives

  • Tips & hints

Should you get a student credit card?

As a student, having a credit card and using it responsibly can help build credit, which can be beneficial should you wish to apply for credit in the future.

How do you apply for a student credit card?

Applying for a student credit card is like applying for any other type of credit card. Once you've decided which to apply for, check your eligibility against the issuer's minimum criteria, check what's on your credit report, and then begin the application.

Can a foreign student apply for an Australian credit card?

Foreign students can apply for an Australian credit card, but they may need to provide additional documentation, such as a valid visa and proof of Australian residence.

Can I get a student credit card with rewards?

Most student credit cards are designed to be low-cost and don't typically come with rewards programs. However, if you're interested in earning rewards for your spending, you can compare both student credit cards and rewards credit cards to find the one that best suits your needs. Alternatively, you may want to consider a debit card with rewards or a prepaid travel card that earns points.

Can I apply for a non-student credit card as a student?

Yes, as long as you meet the eligibility requirements, you can apply for any credit card that suits your needs. However, it's essential to carefully consider your spending habits and financial circumstances to determine if a particular card is right for you.

What happens if I don't make payments on my student credit card?

If you don't make payments on your student credit card, your debt will increase rapidly. Interest will be charged on the balance, and you may also incur a late payment fee of around $10 to $30. If you continue to carry a balance on the card, you'll be charged interest on the entire balance, including the late payment fee and interest charges. This could also negatively impact your credit report. Always aim to pay at least the minimum amount by the due date on your statement, and contact your issuer to discuss your circumstances if you're struggling to meet these payments.

What happens to unpaid student credit card debt if I move overseas?

If you don't continue to make payments on your Australian credit card, the consequences could include:

  1. Additional fees and interest on your Australian credit card increase your total debt.
  2. Late payment or default listings on your Australian credit report, making it harder for you to obtain credit if you return to Australia in the future.
  3. Your credit card debt may be passed on to debt collectors. While most debt collectors in Australia operate nationally, some international debt collectors could attempt to recover the debt when you live overseas.
  4. The credit card provider may take legal action, which could include suing you for the amount owed or having you declared bankrupt.

Can I earn points by paying university fees with my credit card?

Earning points for university fee payments can be tricky, depending on your card and how you make the payment. For example, BPAY is a common option for paying university fees but isn't usually an eligible transaction for earning credit card points. Generally, your best chance of earning points for university fees is to pay by card on campus or through an online payment system like ANZ eGate, CommBank BPOINT, or Citi PayAll (if you have a Citi credit card).

However, it still depends on how the payment is processed, as it could be treated as a purchase or a bill payment. If it's processed as a purchase, you'll earn points just as you would for your everyday shopping. Since university fees can amount to thousands of dollars, you could start by partially paying with your credit card. Then, check how it appears on your credit card account. If it's a purchase and you earn points, you could pay the rest on your card. If not, you could explore other payment options.

Pros

Affordable maintenance

With minimal or zero annual fees, these cards are budget-friendly, especially for students managing their finances.

Lower interest rates

Compared to standard credit cards, student cards often have reduced interest rates, making any carried balance less burdensome.

Controlled spending

The lower credit limits help manage expenditure, reducing the risk of accruing unmanageable debt.

Credit building

An excellent tool for students to start building a credit history, crucial for future financial endeavours.

Cons

Limited features

Student cards typically offer fewer perks and benefits than premium credit cards, reflecting their no-frills nature.

Sparse rewards

Any rewards programs included are usually less rewarding than those tied to high-tier cards, limiting bonus opportunities.

Introductory pitfalls

Attractive initial offers may lead inexperienced users to overspend or misunderstand the long-term costs associated with the card after the promotional periods end.

Buy now, pay later

Afterpay, Zip, and similar buy now, pay later services provide access, but there are concerns that they can encourage and facilitate overspending.

YouPay and similar

YouPay makes it easy for someone else to pay instead of you, for example, your parents. It's available at a growing number of stores in Australia.

Pay as you go

Consider making payments more frequently than once a month. Although credit card statements typically arrive monthly, you can choose to pay off your balance more often. This approach helps you consistently meet the minimum payment, reduces the interest you pay, and may even boost your credit score.

Try to pay your balance off in full

Make it your goal to pay off your entire balance every month. While you're only required to make the minimum payment, doing so can result in high interest charges and unmanageable debt. Aim to pay off your balance completely each month to avoid these pitfalls.

Budget realistically

Develop and stick to a realistic budget that includes your necessary expenses (school supplies, bills, groceries) and allows for unexpected costs. By adhering to your budget, you can allocate money from your monthly savings to pay off your credit card balance in full, avoiding surprises when your statement arrives.

Reserve your credit card for essential purchases only

If you're tempted to buy something non-essential, consider saving up for it instead. Keep your credit card at home, avoid adding it to your digital wallet, and use it only for necessities like textbooks, groceries, and emergencies to minimize impulse spending.