Credit card applications only take around 10 or 15 minutes online and you can usually get a response within 60 seconds. But if you don't know what you need to apply or you're worried about being approved, these credit card application tips are a starting point that can help you increase your chances of approval.
1. Check your credit score.
When you apply for a credit card, lenders check your credit report as part of their assessment. The higher your score, the less "risky" you are. You can get a copy of your credit score for free in the Finder app, and we'll send you an updated on your credit score every month. You can also contact credit score providers like Experian, Equifax and Illion for a free copy of your report, though each agency has different rules around how often you can access it (usually once every 3 months).
2. Pay bills on time to improve your score.
If your credit score is on the lowwer, paying bills on time is one way to help build good credit history. It also shows lenders that you're responsible with money, even for bills that aren't on your credit report.
3. Pay off smaller debts.
If you have existing cards or debts, paying them off or closing some of them can help improve your chance of approval. This is because lenders consider your financial commitments when you apply. So having fewer bills can help show that you're able to service a new credit card.
4. Check the eligibility criteria.
Before you apply for a credit card, you need to confirm you're eligible for it. The criteria typically includes your Australian residency status, income, employment and credit history. If you don't meet all the requirements, choose a different credit card or work towards becoming eligible.
5. Don't apply for too many cards at once.
Applying for a few cards in a short amount of time can have a negative impact on your credit score, because each application is listed on your credit report. Most lenders also consider multiple applications as a red flag, regardless of your credit score.
6. Apply for a reasonable limit.
As part of Australia's credit card regulations, lenders must assess your ability to repay the entire credit limit over 3 years (with interest). So while it may be nice to have a card with a high limit, your chance of approval can increase if you keep your limit low.
7. Avoid using BNPL too much.
Buy now pay later (BNPL) services offer interest-free finance and flexibility. But too many BNPL transactions in your bank statements can indicate that your spending habits are not responsible.
8. Lower your limits.
If you have a credit card already and you're applying for another one – either to use as a second card, or to replace your existing card – reduce the limit on this card to the lowest amount you're comfortable with. This will reduce your overall debt-ratio, giving you a greater chance of being approved for your new card.
Wondering if you'll get approved?
Only 9% of Australians say they've been rejected for a credit card, according to our consumer sentiment tracker (November data). 80% of Australians say they've never been rejected for any products at all.
When you apply for a credit card online, you should get a response within 60 seconds of submitting your application. If you're successful, you will receive account details and your new card should arrive in 5 to 10 business days.
If the card issuer requires more information, your application may be tentatively approved and you might need to supply further details. If you haven't had a response within a few days, you can usually contact the bank or check the status of your application online.
Applying for a credit card is a relatively simple process and can take as little as 10 minutes. To improve your chances of approval, compare your options, check that you meet the eligibility criteria and make sure you have up to date paperwork, like recent payslips, to avoid delays.
"It's important to understand the impact credit cards have on your home loan application. The general guidance is that every $5,000 worth of credit card limit you have, reduces your borrowing power by up to $25,000. So if you're applying for a credit card but you're interested in getting a home loan in the next 3-6 months, it might be worth holding off and getting a new card after you've secured your mortgage. Banks look at the overall limit, not the balance, when assessing your application – so sometimes, it pays to wait."
Each credit reporting agency uses slightly different metrics and rankings; some are a number out of 1,000, others go up to 1,200. Generally, the minimum credit score you need for a credit card in Australia is a 'good' score, which is roughly:
| Response | |
|---|---|
| 1 | 34.41% |
| 2 | 21.56% |
| 0 | 21.2% |
| 3 | 10.78% |
| 4 | 4.49% |
| 5 | 3.95% |
| 7 or more | 2.88% |
| 6 | 0.72% |
Get insights on how many people are part of supermarket and airline programs, how they redeem points and more.
Find out whether your spouse or children are eligible for cover under your credit card complimentary insurance policy.
Get a percentage of your spend back, gift cards or vouchers with a cashback credit card. Find out more and compare current offers in our guide.
While there isn't one best credit card, you can find a card that suits your needs by comparing the features, deals and offers that are trending here.
Just got a new job? Learn about the eligibility criteria you'll need to meet to apply for a credit card.
8 reasons why your credit card application might be refused and what you can do to increase your chances of approval.
Want to factor the credit card provider into your comparison? Here are some details to help you get started.
Compare credit cards that offer complimentary purchase protection insurance and cover your purchases against loss, damage and theft.
Calculate how much you're paying in interest based on your current credit card repayments and discover how much you should pay each month to meet your financial goal.
This is my ref no plz check the status and get back to me
Hi Vishal,
Please note that you have come through to finder.com.au, not a provider. As such, we’re unable to check the status of your application. You’ll need to contact your provider to confirm this information. If you can confirm the provider you’ve applied with, we may be able to guide you in the right direction.
I hope this has helped.
Cheers,
Sally
how is my credit card application progressing
Hi Sharon,
Thanks for your question.
You may have to directly contact the credit card provider to check your card application. You can find this guide on how to check your credit card application status useful to see application details outlined for every credit card issuer. Please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered on your application.
I hope this has helped.
Sharon
I got conditional aaproval for a coles mastercard, is this approved? I have sent through the paperwork they asked for. Just looking for clarification.
Hi Barb,
Generally if you have been conditionally approved, and the documentation you’ve sent in supports everything you’ve stated in your application, then your application should go through.
Cheers,
Shirley
How is my application progressing?
Hi Ernest,
Thanks for your question.
You may have to directly contact the credit card provider to check your card application. You can find this guide on how to check your credit card application status useful to see application details outlined for every credit card issuer. Please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered on your application.
I hope this helps.
Cheers,
Jacob
My salary is $200,000 p.a. I want to buy a credit card with limit of $15,000 to $20,000. Is it possible?
Hi Sonam,
Thanks for your question.
A credit limit is assigned based on the information you provide during the application. You can request a certain credit limit when you apply for a card, but the final say will rest with the credit card issuer. You may refer to our comparison of high credit limit credit cards to find a suitable card for you. You can select the “Go to Site” button of your preferred credit card to proceed with your application. You can also contact the provider if you have specific questions. A gentle reminder, please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply.
I hope this helps.
Cheers,
Jacob