23 Aug 2024
Over 8,000 Nepalese are living and working in Australia. They earn a living and send money to Nepal from Australia to offer financial support back home. The thriving Australian economy, with a nominal GDP of $1.741.88 trillion and a GDP Per Capita income of $65,434.33, attracts many job seekers from developing countries like Nepal.
In developed countries, the plastic currency is writ large. Plastic currency refers to cards – Credit and Debit cards. When you travel abroad, you carry your cards with you, which in most cases do not work in Australia or any other foreign country that you travel to.
So, you have to apply for a credit card in Australia as a Nepali migrant as soon as you arrive there. Because if you do not apply for it quickly, it will create problems for you in managing your financials.
Applying for a Credit Card in Australia as a Nepali Migrant – The Basics and Essentials
The trend of using cash in developed countries like Australia is declining. It is on the decline – and has not disappeared yet! Even if it had finished already, you would have had several alternatives. However, people mostly use credit cards in developed countries like Australia for the following reasons:
· Online shopping
· Building credit score
· Easily borrowing money from banks and other financial institutions
But the question is: Can Nepalese working in Australia apply for a credit card? Because the use of a credit card in Australia comes after you get one. Right? Therefore, the straight answer to this question is: Yes.
You can apply for a credit card in Australia as a Nepali migrant if you meet the requirements. Below are the steps to follow to apply for a credit card. But first, you have to decide if you are applying for one to send money online to Nepal from Australia or for other regular financial purposes. You may want to reconsider if the purpose is to send money online.
However, take a look below.
Determine the Type of Credit Cards You Need
The first step is determining what type of credit card you want to apply for. When you hear the term credit card, you usually think of a typical credit card through which you can borrow money from your financial institutions, which in most cases are banks, to do online shopping, and so on. But when you delve deeper into credit cards, you learn there are several types of credit cards, and applying for one is as easy as applying for a general card.
However, these cards differ significantly in terms of their functions. Therefore, a certain card type may not be suitable for your financial needs. So, make sure to determine what type of credit card you need before applying for one.
Eligibility Criteria to Get a Credit Card in Australia
The eligibility criteria for applying for a credit card in Australia are quite flexible. It depends on the financial institution through which you have applied for one. Different banks will demand that you meet their conditions and will need other documents.
But overall, almost all financial institutions, including banks, will require that you be:
· 18 years or older
· An Australian citizen or hold an eligible visa or a permanent resident
· Having a good credit history
· Meeting any minimum income requirements as specified by the concerned financial institution
· Having a regular and verifiable income
Gather and Prepare the Required Documents
The next step is to gather all the necessary documents and prepare them for submission. Preparation here refers to meeting certain conditions, such as getting your documents verified by the competent authorities. But, this is a rare occurrence. But you may have to meet this condition, depending on your financial institution.
Furthermore, your financial institution will ask you to produce different documents, but overall, some of the most common documents required by all financial institutions are:
· Your payslips or bank statements
· Details of employment like job title and employer
· Recent tax return
· Proof of possession of assets such as a car or mortgage
· Visa documents or address proof
· Copy of recently submitted utility bills
If you look closely, you will realize that these are some of the documents that you require when you initiate a money transfer from Australia to Nepal through any financial institution like a bank or an online remittance transfer service provider.
Therefore, the provision of these documents should not be a problem.
Completely Fill Your Application
When applying for a credit card, it's crucial to ensure that your application is flawless. You've likely followed all the essential steps up to this point, but is your application truly complete and accurate? Before hitting the final submit button, take a moment to review every detail meticulously. Financial institutions often won't reconsider an application immediately if it’s rejected due to errors or omissions, which can lead to significant delays in receiving your card.
Considering the myriad uses for credit cards, from daily purchases to emergency expenses, such delays might not be feasible. To avoid such setbacks, double-check all parts of your application to ensure its completeness. Additionally, it’s important to understand the limits on credit card transactions to manage your spending effectively. Learn more about these limits to maximize the benefits of your card and avoid any potential issues with transactions.
What are the Different Types of Credit Cards?
As mentioned earlier, credit cards have many types. Each type of credit card caters to a different set of financial needs and requirements. Categorized below are the different types of credit cards that you should choose from for your specific financial needs.
Reward Credit Cards – Offering Rewards
As the title suggests, these cards aim to give you something in return for being used.
In most cases, you will earn points or cashback. These credit card types include:
· Travel Reward Credit Cards
· Frequent Flyer Credit Cards
· Premium Rewards Credit Cards
· Store Credit Cards
· Cashback Credit Cards
· Charge Cards
Balance Transfer and Low-Interest Credit Cards
These cards are generally cost-effective and straightforward.
These cards come with fewer features and no or little rewards. These include:
· Low-Interest Credit Cards
· Flat-fee, No-Interest Credit Cards
· Balance Transfer Credit Cards
Credit-Building Credit Cards
These are some of the basic types of credit cards.
If you are trying to use credit cards for the first time, you may find it easier to use these.
Clever usage of the cards can help you build credit over time, making it easy for you to use your credit card for some basic functions, including borrowing money, online purchases, and so on.
These cards include:
· Student Credit Cards
· Low-fee or Fee-Free Credit Cards
Before finally choosing one, thoroughly check if these correspond to your needs or not.
Look for Alternatives if the Purpose is to Send Funds Online Across Borders
If you want to use your credit card, whatever the type of it, to make an money transfer from Australia to Nepal, then you have to rethink. Because a) the cost of doing so will confuse you profoundly and may well throw your financials into disequilibrium and b) more cost-effective and financially beneficial monetary alternatives are already available with easy access.
Your purpose for working in Australia or any other developed country is to earn money and support your family back home financially. Therefore, when it comes to choosing the medium to send funds online, be particular, precise, and meticulous about it!
FAQs
Can I apply for a credit card in Australia as a Nepali migrant?
Yes. You can easily apply for a credit card while living and working in Australia as a Nepali migrant. You not only can apply for a credit card in Australia but you must apply for one as soon as you arrive in the country as in developed countries including Australia credit cards and debit cards are largely used for financial needs.
What are the steps to apply for a credit card?
The basic steps to apply for a credit card are to determine which type of credit card you need, check if you meet the eligibility criteria, gather your documents, prepare the documents, and see if a certain financial institution needs you to get your documents verified by certain competent authorities, complete and check your application thoroughly, and submit.
Which documents are required to apply for a credit card?
Different financial institutions can ask for different documents to be provided when you are applying for a credit card in Australia. But some of the most common documents include your payslips or bank statements, details of your employment, recent tax return, proof of possession of assets such as a car or mortgage, visa documents or address proof, and copies of recently submitted utility bills.
What are the different types of credit cards?
Some of the most common credit card types are reward credit cards, balance transfers, low-interest credit cards, and credit-building credit cards. But remember that these are the broader credit card categories. You will find multiple types of credit cards in each category, which will cater to your different financial needs and requirements.
Are credit cards fit for online money transfers?
No. Credit cards are not fit for online money transfers because they incur huge costs in the process. However, the need to use credit cards for this specific purpose diminishes further in the presence of some of the most cost-effective and financially viable online remittance transfer service providers.
Resource(s)
· Nepalese in Australia
· Australian GDP
(Australia - Gross domestic product (GDP) 2029 | Statista)
· Australian GDP Per Capita
(Australia - gross domestic product (GDP) per capita in current prices 2029 | Statista)
