lokum

we just arrived here in melbourne and recently opened a bank account with NAB. we don't have jobs yet, but we would like to open a credit card account so that we can build a credit history here in australia. we're looking for a no/or low cost credit card and we will be paying the entire balance monthly. Any recommendations on the best credit card to obtain? thanks.

ABCDiamond

Not a fee free card, as such, but worth looking at, depending on your card spending pattern:

ANZ Rewards Credit card -
An annual card fee of $48, which includes the reward card fee.

This card provides rewards points of 1 point for every $1.50 spent on the card.

Spending $9,504 a year will provide you with at least 6,336 points which would be valued at $48 in cash. (Although you do need to reach 13,200 points before you can cash them in for a $100 credit on your credit card account).

Net result is that if you spend $9,504 per year, or more, your card becomes FREE, and you may even then get paid for using it, on any spending above that figure.

We get at least $150 cash back every year, which well offsets the $48 annual fee.

The interest rate is irrelevant to us as we also pay off in full each month


Credit Cards in Australia

windog

You may want a credit card to use & thats fine, but i you are doing it 'to get a credit rating' ....dont! it doesnt work like that here! Effectively here you start off with zero and you can only make it worse by defaulting etc you cant make it better. Also any credit you have will come off the ammount of mortgage you may be able to get.

spottydog

Why do you want to build credit history? Unlike the UK you don't need to build history in Australia, it is more the other way around, you start off well and they take if off you if, for example, you make lots of credit applications, or miss payments.

I didn't get my Australian credit card out until I had my first home loan since the credit card limit (not the amount owed on the card) is taken into account for any other borrowings.

windog

Snap! only you put it better!

ABCDiamond

I agree with you on the above, but there is a way round the mortgage part.

If you pay off the full balance every month, and can prove that to the lender, normally with all the statements, they are able to disregard your credit limit when considering your mortgage.


Getting a Mortgage in Australia

obiwan

i read that the CUA supposedly has the lowest annual (primary/dependent) fees.....

ABCDiamond

Bank of Queensland has a "no annual fee" credit card.

http://www.boq.com.au/personal_credi...terestfree.htm

lokum

thanks for the replies. i guess it is just best for us just to use our ATM cards rather than applying for a credit card, since we will be paying off the card each month, and that we don't get a credit history. thanks!

wannabauzzienurse

I'd be surprised if any bank would give a credit card to new migrants without jobs

lokum

NAB offered us the option to open credit cards (and we don't have jobs) when we validated our migrant bank accounts. they recommended the standard card with $30 annual fee.

NigelWaring

Look at Credit Unions if you can qualify for one that is linked to your industry. I'm in two of them and haven't paid any bank charges for many years, still have access to ATMs and all banking facilities. Both Credit Unions give me two cards which can be used as either debit or credit, very handy to have plenty of cards when travelling especially overseas, at least one of them will always work. Also look at industry superannuation funds and industry health funds.