Follow our guide to maximize your chance of successfully applying for a student credit card.
1. Choose the right card
Try to be realistic - the bank is unlikely to grant an application for a Royal Platinum Deluxe card when you're only working 15 hours a week as a sandwich artist. Plenty of banks now offer cards specifically for students (see the list at the end of the article) and these are your best chance of success. If none of those cards suit you, try a basic, entry level card (also listed at the end of the article).
2. Use your own bank
You often have a better chance of securing a credit card from a financial institution where you're an existing customer. This means the bank already has proof of identity and a financial history on which to base their decision. Some credit cards (such as the Commonwealth Bank student card) even require you to have a savings account with them before applying.
3. Reduce your debt
In assessing your credit card application, the bank will consider any other debts you may have including other credit cards, personal loans, mortgages etc. Some of these (such as high-interest personal loans) may have a negative effect on your application, but others may serve as evidence of your ability to repay credit.
If possible, try to reduce bad debt (such as high-interest or 'payday' loans) prior to your application.
4. Know the requirements
Student cards usually come with stricter eligibility requirements and it's important you collect any required information before beginning your application. Usually as a minimum you're required to be at least 18 and an Australian citizen. Some student-specific cards also require you to prove you're a student.
You don't necessarily need to be working, particularly if you're applying for a student credit card. Banks are aware that students don't always have an income stream and their lending criteria is adjusted accordingly. If you're not working or don't have steady income such as Youth Allowance, the bank may require a co-signer (usually a parent) who acts as a guarantor if you're unable to repay the debt.
Student cards
Other cards
