Why your credit card application was declined, and how to fix it

8 reasons why your credit card application may be declined

1. You have irregular income. Full-time, or stable part-time employment will increase your chances of getting a card application across the line.
2. Your income is too low. Some credit cards list a specific minimum income requirement that you must meet. And even if this isn't listed, card providers are obliged to lend responsibly. This means they can't give you a card if you can't afford repay it.
3. Your spending is too high. Even if you do meet the minimum income criteria, you'll get knocked back if you spend too much of your income each month.
4. Your credit score is too low. Most Australian credit cards need you to have a credit score that is Good or Excellent. Check your credit score for free and see if you have any late or missed payments on debts and bills to sort out.
5. You put incorrect information in your application. Credit card issuers need to verify all of your details before they move forward with the application. Something as simple as a misspelt address or wrong digit in your licence could cause a problem.
6. You're under 18. You have to be 18 or older to get a credit card in Australia.
7. Your circumstances have changed recently. If you have recently moved or changed jobs and haven't updated this information across all your networks, it could be hard for the issuer to verify your identity or access your credit report.
8. You don't meet the citizenship or residency requirements. While there are some credit cards available for temporary residents who hold a specific visa, other cards are only available for permanent residents and citizens of Australia.

Finder survey: How many Australians have had a credit card application declined?

How to improve your chances of credit card approval next time

If your credit card application has been declined, don't rush out and apply for another one right away. Look at the list above and try to figure out what went wrong.

Applying for several credit cards in a short period of time leads to multiple enquiries on your credit report and can be a red flag.

• Get a copy of your credit report. This allows you to make sure all the details listed are accurate. It can also give you a better understanding of how you can improve your finances. For example, if you have multiple late payments listed, paying your bills on time could improve your credit score.
• Choose a card that suits your circumstances. If you have a low income, you probably won't qualify for a credit card with a high annual fee that lets you earn stacks of frequent flyer points. Look for a low rate, low fee card.
• Update your details before you apply. When you check your credit history, make sure that your personal details (including residential address, phone number, email address and employment) are up to date before you apply.
• Reduce your spending. Before applying for another card, try to cut back on how much you spend for a month or two. This will increase your chances of success.
• Apply jointly. If you have a partner, making a joint application can boost your chance of success, especially if you both work. This probably won't work if one (or both) of you has a low credit score though.
• Have your supporting documentation ready. Credit card issuers require a range of documents before they can process your application. This includes copies of your passport or driver's licence, pay slips and bank statements. This will help the bank verify your information and may speed up the approval process.

Our expert says: The fear of rejection is real

"19% of Australians say fear of rejection has stopped them from applying for a loan or credit card. I went through a similar experience when I got rejected for a credit card. Frustratingly, credit card providers rarely tell you exactly why you got declined. But they do suggest waiting a month or two before applying again. Most of the time the reason you got rejected will be fairly obvious: spending too much, not earning enough, applying for an unsuitable card, or your credit score is too low. "

Richard Whitten

Editor

Frequently asked questions

• I have a high interest rate on my current credit card. I've tried to move it to another card with a balance transfer offer but my applications keep getting rejected. What should I do?

  Frequent applications and rejection can hurt your credit rating. In this case, you may want to wait a few months and then find a card that suits your needs and also has eligibility requirements you can meet.

• I am retired. Will this affect my application?

  It depends on the card. Lenders may look at both the employment details and income of a person, which means you could still get a credit card when you are retired if you meet the minimum income requirements. You can compare credit cards for retired applicants here.

• I am new at my current job. Should I wait for some time before making an application?

  Card issuers generally require a minimum of 2 to 4 months of employment with your current employer. Alternatively, you may be asked to provide a letter from your employer confirming the terms of your employment and salary.

• Is it harder to get approval for your first credit card?

  Credit card issuers consider many different factors before approving or declining an application. While you may not have much credit history if it’s your first credit card application, other details such as your employment and income can help you get approval. You may also want to check out our guide to applying for your first credit card for more information.

To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten as part of our fact-checking process.

Written by

Amy Bradney-George

Editor

Amy Bradney-George was the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 16 years of editorial experience and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald. See full bio

Amy's expertise

Amy has written 565 Finder guides across topics including:

• Credit cards
• Frequent flyer
• Credit score
• BNPL
• Money management
• Sustainability