No Credit Check Credit Cards : A Guide to Credit Cards with a Simple Approval Process

Are you Looking for a credit card with a simple approval process ? Need help finding a card with affordable rates? Read through our guide and find the right credit card for your needs!

What Is A Credit Card and Why Should You Consider Getting One?

A credit card is simply a type of payment medium that allows an individual to make purchases on goods and services without physical cash. Credit card companies issue cards after extensive investigation of a customer’s financial history. Once this is done, a credit line is opened on the customer’s behalf, allowing the customer to make monetary transactions using his or her card. This means that the credit card company acts as a guarantor between the individual and the merchant.

Credit cards differ from debit cards because debit cards are more like legal tenders that act in place of cash already in an account. Instead of moving around with cash, a debit card offers you a cashless way of purchasing goods and services and having them charged directly to your bank account.

On the other hand, a credit card works on the principle that an individual is capable of paying for a good or service on the authority of the credit card issuer. So there is no parting of cash but more of an agreement that the sum on all purchases would be paid to the merchant(s) on a stipulated date via the credit card company.

Why You Should Consider Getting A Credit Card

As an individual or business person, you will be making tons of transactions from time to time. Credit cards offer a seamless way to make payments without the use of physical cash. Now, with online transactions on the rise, a credit card is an indispensable tool to make payments a lot easier and faster.

But this is not the only reason for getting a credit card. There are many other benefits associated with owning a credit card. We’ve highlighted some of the reasons why you should consider getting a credit card below.

Credit cards are a great way to work within budget:

When a line of credit is opened for you by a credit card issuer, there is a stipulated amount assigned to the credit card issued to you. This amount, once exceeded, renders the card invalid until another line of credit is opened. So let’s say you have a credit line opened to the tune of $20,000. What it means is that you cannot make purchases beyond this $20,000 benchmark. If this happens, your card will be immediately declined until you make a renewal. In essence, credit cards are a great way to keep you in check and avoid spending recklessly, which is harder to do on a debit card.

Credit Cards Help To Build Your Credit History

Your credit card history forms an integral part of your financial records and your overall credit score. Having a good credit rating puts you in good standing when you need to make certain transactions in the future, like securing a credit facility or mortgage from a bank or lending house.

Cash Back Eligibility

Since Discover made cash backs popular, it has become a major draw point for individuals looking to own credit cards. Cash backs are simply rewards for all transactions made on a credit card over some time. Some of these rewards or bonuses can be anywhere between 1 to 6%. So if you made purchases worth $20,000 on a credit card with a reward rate of 5%, your cashback at the end of the day is $1000.

Credit Cards Are Universally Acceptable

For people who travel a lot, credit cards are a great way to make purchases anywhere and anytime. You won’t have to make any currency exchange before making transactions like hotel bookings, car or home rental, etc. This is, however, difficult or sometimes impossible with a debit card.

Smaller Card Fees

Credit cards generally have lesser charges than debit cards. Although there are annual charges that can be made on credit cards, the cash back rewards you get on them may balance out these charges out in the long run.

How To Get A Credit Card In Australia

Before you secure a credit card in Australia, there are certain requirements you must satisfy before you can have one issued to you. We will discuss a few of these requirements below.

Requirements for Getting A Credit Card in Australia

The following are general requirements for getting a credit card in Australia: - The minimum age requirement to get a credit card is 18. - You must be a citizen of Australia or have a permanent residency. - Your minimum annual income should range between $15,000 to $80,000 or more. - You must have an excellent credit score.

Other information to provide include: - Personal details (name, date of birth, phone number, email address, residential address, citizenship status) - A valid form of identification (Passport, Driver’s license, National ID) - Employment history/details - Financial/Transaction history

How To Get A Credit Card with a Low Credit Score in Australia

The best way to get a credit card with a low credit score in Australia is to use comparison tools. Comparison tools such as RateCity.com.au’s comparison table allows you to search and make comparisons on credit card options that accommodate bad credit scores. Certain credit card companies target their services to low-income earners and individuals with bad credit scores.

Do I need A Credit Score to get a Credit Card in Australia? Why?

The simple answer is YES. You need a credit score to get a credit card in Australia. Credit scores are important for many reasons that can have a lasting impact on your life in general. For one, your credit score information is a means by which most financial institutions, such as banks, lenders, and insurance companies, evaluate your credit-worthiness. Employers also use credit scores to estimate how fiscally responsible you are as a person before offering you employment. Credit scores are a very vital tool in making sharp, informed decisions in any organisation.

An Overview of the Top Five Credit Card Providers in Australia

Here are the top five credit card providers in Australia, their purchase rates, and annual charges.

Latitude 28 Degrees Global Platinum MasterCard

This is a popular Australian travel card that charges neither annual fees nor foreign transaction fees. A Latitude 28 Degree MasterCard attracts a purchase rate of 21.99%. This purchase rate is free for the first 55 days, after which it starts to accrue. Latitude 28 is great for people who travel a lot, especially since there are no international transaction fees.

Qantas American Express Ultimate

Qantas American Express Ultimate is a premium Australian credit card service that offers a 20.74% interest rate, free for the first 44 days. It is most suitable for frequent travellers who may need to make urgent transactions on the go and use the two complimentary Qantas Lounge invitations. Qantas American Express attracts an annual fee of $450 and sign-up bonus points of 100,000. They also do balance transfers and cashback rewards.

Commonwealth Bank Low Fee Credit Card

Commonwealth Bank Low Fee is a low-rate credit card that offers its clients a 19.74% purchase rate free for the first 55 days. Using this credit card attracts an annual fee of $29 per annum after the first year. This annual fee will be waivered if you make transactions of $1,000 and above in the previous year. Commonwealth Bank Low Fee sets a minimum credit limit of $500 on every card and lets you transfer your balance on renewal.

Westpac Low Rate

This is a low-rate credit card secured at a 13.74% per annum purchase rate free for the first 55 days. Westpac also attracts an annual fee of $59 per annum and allows you to make balance transfers at the term’s elapse. The balance transfers attract no purchase rate fees for 24 months (2 years). Westpac also allows one additional cardholder with no additional cost. Customers stand to get a $200 Cashback and a minimum of $1,000 to spend within three months of card approval.

Citi Rewards Credit Card

Citi Rewards Credit Card is a premium Australian credit card service that grants clients a credit limit of up to $100,000. This card comes at a 21.49% purchase rate and attracts an annual fee of $49 for the first year, then $149 per annum for subsequent years. Citi Rewards allows its clients to make balance transfers at a 0% purchase rate for 30 months. Great for consolidating debt, Citi Rewards also runs a reward program and covers overseas travel insurance.

When choosing a credit card company in Australia, it’s essential to consider each card’s terms to pick the one most suitable for your needs. This is particularly important if you’re looking to build a strong credit history. If used properly, you could go from a poor credit score to a good one within a year or two.