A student credit card can be a great introduction to financial planning and budgeting. As they typically have low credit limits, it is also a fairly safe way for students to start building a good credit rating. However, it is important to remember to make repayments on time as interest rates tend to be charged at a relatively high rate compared to standard credit cards. Some student credit cards also offer introductory offers and special student rewards and benefits. Make sure these rewards are actually accessible to you and are not limited by terms and conditions that would render them valueless to you. Below are the student credit cards from the banks and providers within Australia. Use the table to find the best card for your needs. If you would like more information on student credit cards, please scroll to the bottom of the page.

Credit Card	Interest Rate	Balance Transfer Rate	Interest Free Days (up to)	Annual Fee	Rewards
Commonwealth Bank Student Card	19.99% p.a.	5.99% p.a. 5 months	0% 55 days	$0 annual fee for the duration of studies.	No rewards
Enjoy all the benefits of this card and pay no annual fee for the first year Card tailored for full time tertiary students Minimum card approval requirements No reward scheme available Up to 55 interest free from the date the purchase is made, after this period you will be charged an annual interest rate of 19.99%. Cash advances have an annual interest rate of 21.49%. Enjoy an interest rate (per annum) of 5.99% on balance transfers for up to the first 5 months. Once the 5.99% period ends you will be charged an annual interest rate of 21.49% on the transferred balance. You will not be charged interest on any purchases for the first 55. Once the 0% period ends you will be charged an interest rate (per annum) of 19.99% on any purchases you make. This credit card has an annual fee of $0 annual fee for the duration of studies. You do not receive rewards on this card.
Westpac Student Visa Card	20.2% p.a.	N/A	0% 55 days	$0 in first year, $30 p.a. standard.	No rewards
Enjoy all the benefits of this card and pay no annual fee for the first year Low requirements for card approval No reward scheme available Up to 55 interest free from the date the purchase is made, after this period you will be charged an annual interest rate of 20.2%. Cash advances have an annual interest rate of 20.2%. There is no introductory balance transfer offer on this card and any balance transfers will incur an interest rate (per annum) of 20.2%. You will not be charged interest on any purchases for the first 55. Once the 0% period ends you will be charged an interest rate (per annum) of 20.2% on any purchases you make. This credit card has an annual fee of $0 in first year, $30 p.a. standard. You do not receive rewards on this card.

What is a Student Credit Card?

Student credit cards typically tend to have:

• Low or no annual fees
• High interest rates
• Low credit limits (usually between $300 to $500)
• 55 day interest free period
• Introductory offers and special students rewards or benefits

The approval process for a student credit card is fairly straightforward. The minimum requirements are that you are over 18, an Australian citizen and a full-time student. You may also need a co-signer, such as a parent or guardian, who will be responsible for repaying any outstanding debt in case you are unable to. Usually, additional criteria such as having a bank account or savings account with the same bank is necessary. The banks usually have no trepidation in offering students credit cards as the credit limits are so low.

The low credit limits means there is a relatively low risk of accumulating credit card debt while allowing students to build a healthy credit history. This is important as landlords, utility companies and car insurance companies all look at your credit ratings to assess whether you are a low or high risk applicant. It will also make it easier in the future to apply for a standard credit card, assuming you make your repayments on time and maintain a spotless credit history. If your credit card debt is not paid back it means that the credit card holder is in default and a bad credit rating could affect your ability to borrow money for up to 7 years.

It is also important to take credit card security seriously. Do not reveal your PIN to anyone. It is best to remember your PIN number but if you need to keep a written record be sure to keep it separate from your credit card. If someone does use your credit card fraudulently, you are still liable.

Am I ready for a student credit card?

Making repayments on time is one of the best pieces of advice you can get. It is important to know how you are going to make your repayments each month. A regular form of income such as a part-time job would make a student credit card a much more viable prospect.

Interest rates are usually very high and can get you into a tight spot if you do not make your repayments on time. Always pay off balances as quickly as possible. Your diligence will be reflected in your credit history which will be highly beneficial to you in the long run.

If you do decide to apply for a student credit card, make sure you keep a record of all your spending. It's easy to lose track of how much you've spent if you do not keep a budget. This is how credit cards get abused and students find themselves with a debt they are unable to repay.

Debit cards are also well-worth considering as they offer all the convenience of a credit card without the risk as you are withdrawing money from funds that are already in your bank account. However, it is important to avoid any overdraft facility on your student debit card, or you will be charged bank fees.

How do I choose the right student credit card for me?

Choosing the right student credit card is an important decision as it could save you a lot of money. Factors to consider are interest rates, interest free periods, credit limits and rewards systems.

Low interest rates are particularly important for students with an irregular income. If you are unable to make your repayments each month, a high interest rate could put you in a financial bind.

If you are not confident about your budgeting skills, it would also be a wise move to opt for a lower credit limit that is manageable on a limited income. This would remove the temptation to spend beyond your means and stop you from accumulating a hefty credit card debt.

If you currently have credit card debt, you may want to consider a card that offers cheap balance transfers. This could reduce interest charges, lower fees and monthly repayments and allow you to keep your head above water financially.

Advantages of students credit cards

• Low or no annual fees
• Introduces students to financial planning and can help develop good money management skills
• Allows students to build a healthy credit history early on
• Gives students a level of financial freedom
• A student credit card is much easier to apply for than other types of credit cards
• Some student credit cards offer special student rewards and benefits
• Low credit limits means there is less risk of accumulating credit card debt

Disadvantages of student credit cards

• Students without a regular form of income may have difficulties making the minimum repayments
• Interest rates are usually higher compared to regular credit cards and if repayments are not made on time, you could be faced with a substantial credit card debt
• You must be enrolled as a full-time student in an accredited school
• You are often required to open a savings account with the bank that will issue the student credit card before the application is accepted
• A co-signer is often required, such as a parent or guardian, who will be responsible for repaying any outstanding debt in case you are unable to
• The monthly minimum repayments on student credit cards are usually higher than those of standard credit cards

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