Who are low income credit cards suitable for?
Low income credit cards are designed for people who:
- Have a lower annual income
- Are students or young working adults
- Want to build a credit score without breaking the bank
- Seek basic credit card benefits without high annual fees
What to compare for low income credit cards
If you are comparing credit cards and have a low income, consider:
- Annual fees. Are there any fees you're incurring? Is it worth it?
- Income requirements. What's the minimum annual income needed to qualify?
- Rewards and cashback. Are you earning rewards like KrisFlyer miles for your spending habits? How do they work?
- Foreign currency rates. Will you be charged extra for overseas transactions?
How to compare low income credit cards
- Identify your spending habits and preferred rewards (if any)
- Compare different credit card options from various banks
- Check the income requirement and annual fees
- Compare rewards or rebate benefits (don't forget to check what the caps are)
- Consider foreign transactions and conversion rates, especially if you plan on using it overseas or shopping from international online stores
- Read reviews and personal experiences (search Reddit and as your own friends for their experience)
- Compare credit limits (expect them to be fairly low in general)
- Apply for the card that best fits your needs
Pros and cons
Pros
- Low income requirements
- Affordable or no annual fees
- Helps build credit score
- Simplified rewards structures
Cons
- Limited rewards and cashback
- Low credit limits
- Suitable for basic needs only
FAQs
Are there specific credit cards tailored for students?
Yes, some banks offer credit cards designed for students which usually have lower income requirements and help students learn financial responsibility.
What should I do if my application gets rejected?
It's important to review the reasons for rejection and work on improving your credit score, repayment history, or income level before re-applying again. If you apply too soon and are rejected again, this can make it more difficult to be approved in future. Avoid getting into this spiral of rejection by tidying up your finances first.