To get your credit card application approved, you need to prove to the bank you can meet your repayments. There are also eligibility criteria you have to meet and documents you need to provide, which means there are many reasons your application might not be approved. In fact, Finder's research shows that 8% of people have had their credit card applications declined.
Here are the most common reasons your credit card application may have been declined and what you can do to get approved next time.
Finder research shows unsteady income is the main reason people are declined for a credit card, affecting 36% of those whose applications are rejected. This is because stable, ongoing employment helps show to lenders that you can meet repayments for a new credit card.
If your employment is temporary, casual, part-time or hard to verify for some other reason, you may find it hard to get approval. If this is the case but you meet the income requirements, contact the bank beforehand to confirm if there is any additional information you need to provide to demonstrate your ability to repay.
Some credit cards list a specific minimum income requirement that you must meet to apply. But even those that don't list an income amount must consider if your income could allow you to reasonably manage the card under Australia's responsible lending requirements.
If your annual earnings are less than this, your application will be declined. You can compare credit cards with low annual income requirements (between $15,000 and $25,000 p.a.) for some low-cost alternatives.
Credit card issuers need to be able 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. Make sure you carefully review your application before you submit it. If you make an error, you may be able to resolve it by contacting the issuer and amending your application.
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. As with mistakes on the application, you may be able to deal with this by calling the credit card issuer and providing additional documentation. If you include your employer's contact details in the application, you should also let them know that they may receive a call from the bank regarding your application.
Credit card issuers in Australia only approve applicants who have a good or excellent credit score. When you apply for a credit card, the issuer will request a copy of your credit report from a credit reporting agency. Late payments, defaults, too many applications for credit, or even not enough credit history, could result in negative information on your report, and the issuer may decline your application.
Finder research has found having a bad credit score affected 21% of people who had their credit card application declined. So before you apply for a credit card, check your credit report and credit score to make sure it's in good standing.
Lenders not only look at your income when you apply for a credit card, but also your expenses. If your expenses outweigh or take up a large percentage of your income, the issuer may consider you a high-risk applicant who could struggle to repay your balance.
This includes debt, with Finder research showing 22% of people had their credit card applications declined due to having too much debt.
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. If you don’t meet these requirements for a particular card, you won't be approved for it.
You must be at least 18 years old to apply for a credit card in Australia. If you are under 18 your application will be declined. While there is no maximum age limit on credit cards, banks may decline your application based on other factors, like your income or employment.
| Response | |
|---|---|
| No | 73.76% |
| Yes | 15.45% |
| I have never applied for a card | 10.78% |
If your credit card application has been declined, it may be because the bank has deemed you unlikely to meet your repayments. As much as you may want a credit card, it may not be the best financial decision for you at this time.
In Australia there is around $18.6 billion worth of credit card debt. While many people say they could manage their finances without a credit card, around 28% say they could not. This is where having a credit card could become dangerous, because there is a risk of ongoing debt.
If you feel that you will be able to make your repayments and you are eligible for a credit card, here are some ways you can prepare for your next application:
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 for lenders. If you're denied, wait a few months before applying for another card. In that time, you can improve your credit score and compare your options before applying for another card.
You can request a free credit report from all of the major bureaus once every year. This allows you to make sure all the details listed are current and 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.
Make sure you can meet the eligibility criteria. For example, if you don’t earn a lot of money, you may want to look at credit cards for low-income earners. If you are retired, on a pension or self-employed, you'll need to provide additional documentation to prove whether you are eligible.
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. This will make it easier for credit card issuers to verify the information on your application.
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.
Credit card issuers require a lot of information before they can make a decision about your application. So understanding what may cause a bank to decline your application, means you can improve your chances of approval next time.
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I’ve been wondering if I’m eligible for a credit card? I’ve been doing farm work for 8months all up but currently moved to another farm been there for one month now would I still be able to apply for a credit card? Not quite sure how this works? Also wondering if it would be harder to apply for one considering its my first time?
Hi Lean,
Thanks for your inquiry.
You might want to take a look at the different credit card options and compare the different options on the table until you find one that you think will suit your needs best. Once you have chosen a credit card from the table, select on the product name so that you will be led to its review page wherein the eligibility requirements and steps on how to apply are indicated.
Also, you might want to read through our post about How To Apply For Your First Credit Card as you might just find it useful.
I hope this helps.
Cheers,
Ally
Is applying for a credit card the same as applying for medical finance?
Hi Ivy,
Thanks for your inquiry.
Credit card facilities and medical finance loans can be assessed from your personal credit file. Credit cards differ in the way they are used, as they provide purchase, cash withdrawal, and other features. You may like to compare credit cards to see your options. 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.
Cheers,
Jonathan
My son applied for a GO MasterCard to use at Harvey norman, it was declined. Just wondering why as he has full time work, no outstanding bills, paid both his car loan and HSBC credit way ahead of time, only has his rent and phone to pay so what went wrong?
Hi Sandra, thanks for your inquiry!
Banks/lenders have individual lending policies and application requirements. It would be best to contact GO MasterCard directly to inquire further about the application.
I hope this helps,
Jonathan
Hi
I am looking for a balance transfer card but haven’t applied yet but would like some advice to increase my chances of being accepted.
I have an excellent credit Veda score and I own my house outright with no loans , have been at my job for almost 3 years ,but have very high credit card debt of over $X and all close to limits(due to a messy divorce).
My salary is not very high but over $Y. I have roughly $Z in the bank.I have a housemate just move in and will be paying a small rent and half the utilities.
My question is -it better to take some of the cash and put it towards the credit card balances before I apply so the cards so not to be almost maxed out? Or is it better to have available cash?
I also have a small investment portfolio in the US but should I list that as it is overseas?
thanks in advance
Hi Leslie,
Thanks for your inquiry.
In regards to paying credit card debts, it is usually advantageous to minimise debt amounts to avoid higher interest repayments. An ideal method of consolidating credit card debt, especially on multiple cards can be a balance transfer card. You may also like to see more information on credit records and tips on getting your credit card application approved.
Cheers,
Jonathan
The other day i had a credit card application declined. The credit card was a 12% interest free on purchases (i already have a credit card that has an interest free period but about to run out, that is also not owing anything) and i have closed one credit account before, as well as paying off a personal loan very early and having a car loan now. I earn pretty good money, and i don’t have many doubts about my credit history but for some reason i get declined? It just makes me wonder if the banks decline if they think someone has a TOO good of chance of repaying them before the interest free period is over (meaning they make no money, besides yearly fee) Extremely frustrating as it does not look good for someone who has an otherwise great history.
Sorry, meant to say 12 months interest free**
Hi Ktee,
Thanks for your comment.
As you can see from the page above, there are various reasons why a credit card application might be declined. Card issuer’s use a variety of criteria to determine someone’s eligibility, and unfortunately it’s not always obvious why your application might not have been accepted. As you mentioned, the card application will appear on your credit file as declined so it may be worth waiting until you apply for your next card to give yourself the best chance at approval.
Thanks,
Elizabeth