Credit Cards for Temporary Residents

Applying for a credit card as a temporary resident

Only a handful of banks let you apply if you hold a temporary visa. It can be tricky terrain, but if you do your homework its possible to get a credit card while you're here.

We'll explain some of the rules and restrictions you might come up against, and how to boost your chances of being approved.

Why is it more difficult to get approved as a temporary resident?

Risk! Banks want to be sure you can repay the money your borrowing. Let’s take a look.

As a temporary resident, you have no credit history.

First, your card provider wants to know how responsible you are with credit. By looking at your credit history, they can see how well you have dealt with credit in the past, which shows how you might handle it in the future.

If your credit file shows you have late payments or defaults, it suggests that you may not be very responsible with credit. This may mean your application gets declined. If you have a good credit history, on the other hand, your application is more likely to be approved.

When you apply for a credit card as a temporary resident, your credit history is limited. That means there is no way for your card provider to assess how responsible you are with credit. Even if you have exceptional credit history at home, Australian card providers cannot access this information, and will not take it into account.

As a temporary resident, you may leave at any time.

Another potential risk for card providers is that you could leave Australia at any time. It's hard to chase someone down from a different country. If it’s too time-consuming or expensive to retrieve those funds, the card provider would have to write off the loss.

How do you get approved for a credit card as a temporary resident?

While these factors may make it more difficult for temporary residents to get approved for a credit card, that doesn’t mean getting access to credit is impossible. Card providers willing to offer credit cards to temporary residents may be willing to overlook the above risks if the applicant is able to meet an expanded selection of application criteria.

Depending on the card provider, that may mean:

• You must hold a certain type of visa. Card providers that allow temporary residents to apply may specify the type of visa you must hold to be eligible. If you are unsure whether your visa is accepted, ask your card provider to confirm the details of what is acceptable before you apply.
• Your visa must be valid for a certain period of time. Card providers may also stipulate how much time you have left on your visa before it expires. This may be a period of one or two years, but if you are unsure, it’s a good idea to ask.
• You must have a certain amount in savings. Some card providers ask that temporary resident applicants have a certain amount in savings when they apply. This may mean simply showing proof of that amount, or holding it in an account with the provider.
• You must have an ongoing source of income. Your card provider may require you to have an ongoing source of income. In some cases, you may need to make more than a certain amount per year. Other providers may ask that you have worked in Australia for at least three months, and have completed your probation period.
• You must have an Australian residential address. Most providers ask that you have an Australian residential address. Typically, this can't be a hotel or hostel.

You may also have to provide proof of the necessary eligibility requirements. This may mean handing over your passport and visa documents, your employment agreement or your last two payslips.

However you choose to apply, and whatever information your card provider asks of you, you need to remember that each application is assessed on a case-by-case basis. That means your card provider may ask for further documentation, and even if you meet all eligibility requirements, your application still may not be approved.

What credit cards can you apply for as a temporary resident?

While your choice may be restricted as a temporary resident in Australia, there is still a good range of cards available to you. You may be able to find options with intro offers on purchase rates, rewards points and balance transfers too.

With all that in mind, you still need to meet the card provider’s eligibility requirements in order to be approved. Let’s take a look at the cards available to temporary residents in Australia, and what each card provider expects from applicants to approve their application.

• American Express: You need a visa of at least 12 months or more. Amex doesn't accept student visas.
• ANZ: ANZ says it accepts all temporary visa subclasses for working in Australia, except Working Holiday visas. You must have at least 12 months on your visa remaining to apply.
• Bank of Melbourne: You need an acceptable visa with a minimum of 1 year before expiry.
• CommBank: You need to have a visa that allows you to work in Australia, with at least 6 months remaining. Working visas aren't accepted, but CommBank does accept many work, business and student visas.
• NAB: You must be an Australian Permanent Resident or hold an acceptable Temporary Residency Visa. These categories are not acceptable: Visitor Visa (exception, a Special Category Visa - NZ Citizen is acceptable), Working Holiday, Student, Exchange/gap year, Transit/short stay/seasonal and Bridging.
• St.George: You need an acceptable visa with a minimum of 1 year before expiry.
• Westpac: You need an acceptable visa with a minimum of 1 year before expiry.

What are the eligibility requirements for a temporary resident?

Eligibility requirements vary, so it’s important to make sure you meet each before you apply. Eligibility requirements for temporary residents are even more strict. For instance, you might need to meet these requirements:

• Age: You must be at least 18 years of age to apply for a credit card in Australia.
• Employment: You must have employment in Australia, or proof of upcoming employment in Australia when applying. You may be required to supply details of previous employers. It’s a good idea to get official, written confirmation of your employment contract, including details of your salary to verify these details to the card provider.
• Income and assets: With a job generally comes an income. You must have a regular, Australian taxable income to apply for a credit card. You will find minimum income conditions apply for many cards. For some cards, you may also be required to have a specific amount of Australian dollars in an Australian bank account.
• Passport: You will have to supply your passport number. You may also have to provide a certified copy of your passport.
• Visa: To apply, you must have a valid, eligible visa, often with a minimum amount of time left on the visa before expiry.
• Address: You must have a residential address in Australia to apply for a credit card.
• Australian bank account: You must have an Australian bank account to get a credit card.

You might be asked to provide additional information, and your application might be assessed on a case-by-case basis.

Who isn’t eligible for a credit card?

If you’re here on holiday, if you are on a bridging visa, a spousal visa or a student visa, your chances of approval are lowered because your eligibility for employment tends to be restricted. Without a steady income, it would be hard to prove to card providers that you could repay your credit card debt.

What can you do to improve your chances of being approved?

All you can do is take the time to compare and find the right card that allows applications from your visa status, and meet the other eligibility requirements.

Read the small print and speak to the card provider if you're unsure. You may have to visit a branch rather than apply online. You may also have to provide extra info, such as references and utility bills.

It's possible you'll start with a lower credit than you're used to, but over time, you should be able build up that credit limit.