Pensioner and Retiree Credit Cards

Credit Cards For Pensioners and Retirees

People on a pension or even self-funded retirees can find it harder to be approved for a credit card because you may not fit the standard eligibility criteria for income.

Card providers look at 2 big factors: stable income and credit history.

As a pensioner or retiree, you no longer have the stable job and salary. You may still be able to get a credit card, but you might have to work a little harder to meet the card's eligibility requirements. It's very important to check the eligibility laid out for the card, since some have caveats for those on government pensions or receiving superannuation payments. 

Checking Eligibility Requirements

Before you click the apply button, check the card's eligibility. The income is where things get tricky for seniors because not all incomes are created equal. For example, one card may accept Centrelink payments as a form of income, but if that is your only income, you may not be approved.

Our most recent check has shown that St.George is one kind of bank that may need to see more than one stream of income if you're on a Centrelink pension.

If you’re unsure, contact the card provider to check.

Your credit history may also be a factor. When assessing credit card applications, card providers always check the applicant’s credit history. Providing important information regarding how well the applicant has dealt with credit in the past, their credit file allows card providers to assess how well they might deal with credit in the future.

As a pensioner, you are likely to have an extensive credit history – and as long as your relationship with credit has been good, this should bode well for you in future credit applications. To check your credit file, you can apply direct from any of Australia’s major credit reporting agencies (for free), or opt for a third party provider.

To find out more about what some of Australia’s biggest card providers look for when assessing credit card applications from pensioners, read this post.

Comparing the Best Credit Cards for Pensioners

The truth is, there is no ‘best’ card – there's only the best card for the way you live. So, how do you live?

You just want an everyday card

You know you’ll be using your card day-to-day, but you’re not interested in earning rewards or using extra features like a balance transfer. You expect you'll pay off your card at the end of each month.
Your card: A card with a low annual fee – or preferably no annual fee – that provides you with a credit limit that covers your everyday spending.

You want a low cost card

You know you might carry a balance once in a while, so you want to keep interest costs down.
Your card: A card with a low interest rate that will help you keep interest costs as low as possible while you work on paying off your balance. A low annual fee would also be worthwhile.

You want a card for emergencies

You’re not interested in using a credit card day-to-day, but you want one should an emergency arise.
Your card: A card with no annual fee. A low interest rate is also a good idea, in case it takes a few months to pay off your emergency spending.

You want to earn rewards

You have a significant monthly spend and you want to make the most of it by earning rewards. You always pay your balance in full each month.
Your card: A rewards card that offers a good rate of return on your spending, within a rewards program that you value.

You want access to perks

You want to take advantage of credit card perks, such as travel insurance, travel credit and airport lounge access. You always pay your balance in full each month.
Your card: A premium card, such as a platinum card, which offers the extras you need at an annual fee that suits your budget.

Applying For A Pensioner Credit Card

So you know you’re eligible for the card you want to apply for, now you will have to prove it to the card provider. When you apply, the card provider will ask you to detail relevant information regarding your income, assets and debts. You may then have to provide documentation to back that up. If you have an accountant, you may have to provide your accountant’s contact details.

Should you apply for a credit card with your bank? In some cases, applying for a credit card with your current bank could make it easier to get approved, especially if you have a good, long-standing relationship. You could try speaking to your bank to see what they could offer you. It’s always worthwhile comparing options elsewhere, however, to make sure you are getting a good deal.

Using Your Card

You’ve been approved. Congratulations! With your new card in hand, it’s a good idea to stick to a few guidelines, as follows.

Understand your introductory offer: If your card has an introductory offer, make sure you understand how it works. Know when the introductory period ends – and what happens when it does. If you need to meet certain requirements to be eligible for the offer, know what they are and make sure they are doable.

Keep on top of your spending: Use your card’s resources to keep on top of your balance, whether that’s using phone banking, online banking or your card’s app. You can pay off bits of your balance through the month if you wish, but always try to clear your balance at month’s end.

Be on the lookout for fraud: Keep your card and the details on it safe. Don’t tell anyone your PIN, and if someone asks for your card details over the phone or online, consider whether it’s safe to do so. Stay vigilant.

What is the minimum income for a pensioner credit card?

To apply for a credit card in Australia, you will need to have an income of at least $15,000 per year. While basic, low cost options typically have a low minimum income requirement, higher end cards and rewards cards tend to have a higher minimum income requirement. When you apply for a card, the minimum income requirement will usually be stated. If it’s not, ask the card provider for more info.

What is the minimum credit limit for pensioners?

On basic, low cost cards, the lowest credit limit available is typically $500 or $1,000. On higher end cards, the minimum credit limit may be as high as $10,000. When you apply for a card, your card provider will assess your creditworthiness and assign you a credit limit. You can request to lower this credit limit as long as you don’t go below the card’s minimum credit limit.

How do you find the best pensioner credit card for you?

When comparing options, consider the following:

Suitability: Think about what you really need from your card, then compare the options to find the one that matches your needs.

Affordability: Check the card’s annual fee and make sure that it not only fits your budget, but offers value in terms of what the card is providing you. If you think you might carry a balance, check the card’s purchase rate as well.

Eligibility: Before applying, check the eligibility requirements set out by the card provider. These will typically require you to be an Australian citizen or permanent resident, with a minimum annual income. Your credit history will also be a factor.