Being a post-secondary student also means having to sacrifice a full-time job. Keeping money in your pocket by spending less is key to student life. Which is why banks have created student credit cards in Australia that have no fees.

Credit card providers try to accommodate their products students with features like low or no annual fees, or low purchase rate choices. 

One clear reason for owning a credit card as a student is to build your credit history. Making it easier in the future with a credit history to apply for large loans, such as a personal loan or mortgage.

How to spot a student credit card?

The lines are sometimes blurred when seeing the difference between student credit card and a general credit card.

There are three main features that show it can pass as a student credit card. 




Low minimum income.

Before you apply for a credit card, first check if you meet the minimum income requirement. As a student, you want to find the cards with a zero or low minimum income requirement. For example, on Kredmo’s site when searching for a credit card you should select the income filter of “less or $15,000". 

Smaller credit limit.

Credit card providers will generally provide students with lower credit limits. These limits can start as low as $400 and be as high as your provider will allow depding on your income, credit history etc.

As a general rule, the higher the credit limit then the higher the income required to apply. Some credit cards may have a low minimum income but a higher credit limit than $6,000 - just watch out for these types.

Low annual fee.

Typically, most student credit cards have low or no annual fees. Helping reduce the cost of owning a credit card for a student. 


Are there different types of student credit cards?

Yep, there sure are!! 

For students the majority of them are low or no annual fee credit cards. 

Other credit card types such as low rates, rewards points, travel, and frequent flyer and balance transfers are all available to students too. These are available in smaller quantities though, because of the higher annul fees and stronger application criteria - you'll see this especially with reward point credit cards.  

The reward point credit cards will usually come with more perks but also a higher annual fee. You should weight out whether your reward points earned back cover the annual fee cost to judge if it’s worthwhile for you. 

Low rate credit cards

Low annual fee credit cards

Rewards credit cards - **to see the student options, you need to sort the list via the 'annual fee' column with lowest at the top**

Balance transfer credit cards

Travel credit cards

Frequent flyer credit cards - **to see the student options, you need to sort the list via the 'annual fee' column with lowest at the top**


How to find student credit cards on Kremdo?

Navigate to Kredmo's homepage compare credit cards. First, select your credit card type, then extra feature and select income of "Less or $15,000" if that's your income bracket.




How can I apply for a student credit card online?

On the Kredmo credit card results page, select a credit card and click on its ‘go to provider’ button. This will take you the credit card provider’s website. Or you can go direct to your bank’s or the provider's website. 

A few key personal checks to do when applying online.

Age: You have to be 18 years of age or over.

Residency: Generally, you have to be Australian citizen or permanent resident with several months still remaining to apply. If you don’t have either of them then call the credit card provider to inquire about your options.

Income: Ensure that you meet the minimum annual income requirement.

Student as Occupation: Be sure to select the full time student identifier on the application if there is one. This ensures your application will be assesed as a student and not a full time worker. Providing more leniency to your submitted application.

Or also check out 5 thing to know before you apply for a credit card online.


Here are some best practices when using a credit card?

Setup a direct payment.

Set the direct debit payment option to automate your monthly repayments. Setting this up can save you from missing a payment and pontentially putting a dent in your repayment history. Plus, you will avoid being charged late payments fees too.

Don’t overspend your budget.

Though it may feel like free money it's unfortunatey not. Do budget your monthly spending, because what's borrowed will need to be paid back and sometimes with interest. So do your best to use it responsibly. 

Choose a reasonable credit limit.

Sometimes the higher the limit comes with a greater tendency to spend. Keeping this in mind, go with a limit is comfortable for you to pay off if you reached the limit. And of course, choose a limit that’s not too low that you keep going over the limit each month.

Avoid using cash advances.

It's best to avoid cash advances unless you desperately have to use them. Drawing cash from your credit card means you start paying interest immediately regardless of the interest rate free period. 

The interest on cash advances is charged on a daily basis until you pay back the drawn amount and the cash advance fee of 2% to 3%.

As always if you have any comments feel free to share them below.