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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Ive applied for a credit card but have not heard anything back although their website claims a 60 second response, is this an indication that I have been rejected. ?
Hi,
Thanks for your question.
The response you received may have been that your application will take more time to process, so if you received this message then this might be considered your response. You might want to get in contact with the card issuer to discuss the progress of your application and ensure it was successfully received.
I hope this has helped.
Thanks,
Elizabeth
I know this thread is old but westpac declined my credit card application and when I spoke to them they said
It had nothing to do with my credit history nothing to do with my credit file nothing to do with my income or assets or employment status ?? So what the hell was it then? My score was good as well she said she cannot have it reviewed but I could get my branch my manager to request it be reviewed but like why would they decline it if there wasn’t a problem in the 1st place could anyone please explain?
Hi Scott,
Thanks for your question.
As you can see from the information on this page, there’s a few reasons why your application may not have been approved. The banks don’t necessarily have to advise you as to why they’ve rejected your application, but they would have their own criteria in place they you would not have met if you were to be rejected. If you feel like you want the decision reviewed then you have that option open to you, as explained by Westpac.
I hope this has helped.
Thanks,
Elizabeth
Got a home loan approved, waiting for settlement. Would getting a new credit card impact my settlement?
Hi Shant,
Thanks for your question.
This could have an impact on your settlement depending on your lender’s policies. I’d recommend speaking to your lender about whether a credit card application will affect anything.
Please note that your home loan application could have an impact on your credit card application.
All the best,
Shirley
is there away you can workout you point score before applying for a credit card
Also is there a guide line on how much to apply for against earnings
Hi Hilda,
Thanks for your question.
You may want to use some of the credit limit calculators available online, though these should be treated as estimates only.
Unfortunately there is no ‘one size fits all’ guideline in terms of earnings and your credit limit. Each bank/provider has their own criteria which they will assess you against. For more information, please contact the relevant credit card issuer.
All the best,
Shirley
Hi, i applied for a credit card in order to do a balance transfer for my two credit cards. The credit cards are in my name, and i applied for the new one as a joint application with my partner. I have been employed 3 years, and his current employment is only 3 months in. No surprises that we were declined, i also did not list our assets as i should have. I want to apply again as a single applicant. How long should i wait between applications?
Hi Claire,
Thanks for your question.
As a general rule of thumb, one application every 3-6 months is favourable from a lender’s point of view.
Cheers,
Shirley