Credit Cards for Low Income Earners and Centrelink

If you are on Centrelink or a low income earner there are a few options in terms or qualifying for a credit card or even personal loan. Lenders look at numerous factors to determine a borrowers risk level and ability to service credit. Some of the criteria that is analysed include; credit history (good/bad/none), employment history, employment (if any), income to debt ratio, etc.

Depending on how you fair across these factors will determine the outcome. If Centrelink is your sole source of income, getting approval for a credit card may be challenging. That being said, depending on your specific circumstances on why you’re on Centrelink…you may still qualify.

There are numerous reasons to apply for a credit card, including some of the following; the ability to hire cars, travel, emergencies, consolidation of debt, etc. Below are a variety of options for different potential solutions.

If you are in need of money, options include.

 
Debit Credit Card – This is essentially an official credit card which can be used for travel, car hire, reservation holds, etc. The main difference here is that it only uses money you have in a bank account that is attached to the card. It is not a line of credit like with traditional credit cards.

Prepaid Credit Cards – Similar to the debt credit card, these can be purchased or ordered from banks and other designated locations. Unlike the debt credit card which is attached to a bank account, these cards are purchased with the amount that you’d like to have on them.

General Credit Card – You don’t know if you don’t try. Contact your bank to see if they have any products that may fit your needs and that you qualify for. If you don’t qualify, get the reason(s) on why you didn’t. Depending on what they are, you may or may not want to apply elsewhere.

The above are some of the main credit card options available for people on Centrelink or on a low income. If you are just in need of cash and it doesn’t need to be a credit card, learn about some loan options for people on Centrelink and/or low income earners here.