How to get a credit card in 3 simple steps

How to apply for a credit card in 3 steps

Getting a credit card shouldn't take very long if your credit score is in decent shape and you meet the card's eligibility criteria.

1. Figure out what card you're looking for.
2. Check that you're eligible for the card.
3. Complete the online application.

It's simple in theory. But if your application gets rejected we've also got some tips to help you.

1. Figure out what card you're looking for

There are actually lots of different credit cards for different people. What are you looking for?

• I just want a basic card with minimal fees and low purchase rate. I don't care about rewards or points. You are probably looking for a low rate card or a 0% purchase rate card. Or a no annual fee credit card.
• I want to earn reward or frequent flyer points when I spend money. I'm not so worried about paying an annual fee. You could look for a frequent flyer card that gives you Qantas or Velocity Points. Or a rewards card that gives you points to use on shopping discounts or gift cards.
• I am in a bit of credit card debt and the interest rate is too high - help! You need a credit card that comes with a balance transfer offer (when you apply, you need to state that you want to do a balance transfer).

2. Check that you're eligible for the card

Before you apply, check the following:

• Make sure you're 18. That's the minimum age for a credit card in Australia.
• Minimum income requirement. If a credit card requires a minimum income of $30,000 but you don't earn that much, you'll get rejected.
• Check your credit score. If you've missed some bill payments or have unpaid debts, it will show up in your credit report. And your application might get rejected. Check your credit score (it's free) and make sure there are no problems.
• Make sure the card is one you'll actually use. There's no point getting a rewards credit card if you don't need the reward points. Especially if the card has an annual fee. Some cards offer bonuses or other benefits that you can only get if you spend a certain amount with the card.

3. Complete the online application

This part usually takes around 10 to 20 minutes online.

• Personal details. This includes your full name, date of birth, Australian residency or citizenship status, contact phone number, email address and residential address.
• Identification. You need to provide a valid form of ID, such as your driver's licence, passport or Medicare card details. Once the initial application is submitted, you may also be asked for certified copies of these documents.
• Employment details. You'll be asked for details of your employment status, including your profession, your employer's name and contact details, as well as your salary. You may be asked to provide recent payslips to verify your income.
• Other financial details. This includes any other types of income, such as Centrelink payments, as well as any savings, shares or other assets. You also need to provide estimates of your regular expenses, including rent or mortgage payments, loan payments, bills and grocery costs.
• Card details. During the application, you'll be asked about some card features, including the credit limit and any balance transfer (if you're moving debt from an existing account).

What happens after you apply?

Most credit card providers offer a response within 60 seconds of applying. There are typically 3 potential outcomes: approved, conditionally approved or declined. The bank may ask for more information before making its final decision.

• If you're approved you can expect your new credit card to arrive in the mail within a week or so.
• If you're conditionally approved you may need to give the card provider some more details or just wait another day or two as it processes your application.
• If you're not approved you need to figure out why and avoid applying for the same card right away. More on this in the next section.

My application got rejected! What do I do?

Credit card companies reject applicants all the time and don't always explain why. It's extremely frustrating.

Do the following:

1. Check your credit report (if you didn't do this before). You may have an error on your report or your credit score may be worse than you think.
2. Don't re-apply for the same card right away. Getting rejected for a credit card hurts your credit score temporarily. Getting rejected again only makes it worse.
3. Check you meet the income requirement. Double check that you earn enough to get the card.
4. Take a look at your spending. Even if you tick every box you might get rejected if your monthly spending is too high.

Applying again

Once you've done the steps above you have a few options:

• Re-apply for the same card. Only do this if you think you know why you got rejected and have fixed the issue. It's best to wait a month or two.
• Re-apply as a joint cardholder. If you have a partner, see if you can apply with them. This can increase your chances of success (although that does depend on your partner's circumstances too).
• Apply for a different card. You might have to settle for a card that isn't quite flashy as the one you had your sights on.

"I got rejected the last time I applied for a credit card. It was a fairly high end frequent flyer card. I ticked every box but my spending was way too high. All our bills come out of my bank account, so the card company thought I couldn't afford the card. I re-applied jointly, with my wife as the primary applicant. We were approved in an hour."

Richard Whitten

Senior Money Editor

What to think about when applying for your first credit card

• How much do you earn? Banks and other credit card brands look at your income as part of the application process. If you're applying for your first credit card and don't have much credit history, they could place more weight on your income when deciding to approve or decline your application. If you're worried about this, you could compare credit cards with low minimum income requirements.
• How much can you afford to pay for a credit card? Credit card annual fees and interest rate charges can quickly add up – especially when you're not used to having one. So it can help to look at cards with interest rates and fees that are affordable based on your income and spending habits.
• Are you a student? If you're studying full-time, you may be able to get a credit card that's designed for students. Student credit cards usually have low credit limits and low or no annual fees to help you manage the costs (and reduce the risk of serious debt).

Finder survey: Have Australians ever used a comparison website to compare credit cards?

Frequently asked questions

• What if I don't activate a credit card?

  You can't use any new credit card until you've activated it. And the application details will still be listed on your credit history (this is the case even if you're not approved).

  What happens next depends on the provider and the terms and conditions that you agree to when you apply and submit your application. In some cases, your account may be set up as soon as your application is approved, especially for digital or virtual cards.

  For example, the MONEYME Cashback Rewards Credit Card terms and conditions state that the card "will be activated and ready for use once MONEYME has approved the opening of your Account", while Bankwest states its digital cards don't need to be activated.

  If you don't want to activate or use a credit card after you've applied and been approved, you should call the provider as soon as possible and explain that you have changed your mind and no longer want the account. In most cases, this will void the card and the account before you have accepted it.

• What credit score is needed to get a credit card in Australia?

  There is no set credit score requirement that you need to meet before you can get a credit card in Australia. But many credit card providers will say that you need to have "good" or "excellent" credit history. Your credit score can give you a sense of whether you meet this requirement. If you don't know your credit score, you can check it for free through Finder.

• Can I get a credit card as a casual employee?

  It's possible to apply for a credit card when you're a casual worker, as long as you meet all the eligibility requirements and can provide supporting documentation of your regular income. This typically includes:

  • Recent payslips for the past 2-3 months (or more)
  • Your most recent income statement (previously known as a payment summary or group certificate)
  • Your employer's contact details and/or a letter confirming your employment
  • Your 1-2 most recent Tax Assessment Notice from the Australian Taxation Office

  The credit card provider will also consider the length of time you've been employed, any other sources of income and your household assets and expenses as part of the application. As a general guide, including as much detail as possible gives you a greater chance of approval.

• Can I get two of the same credit card?

  It's sometimes possible to get two of the same credit card but it depends on the lender's application criteria and assessment. Some lenders might be concerned that a second application for the same account was a case of identity theft.

  Also keep in mind that introductory bonus point and promotional interest rate offers are typically reserved for new credit card customers. Most providers explicitly state that you won't be eligible if you hold a similar account with them.

  So, it's often easier and more practical to look at other options that fit with your goals. This could include:

  • Getting an additional card for the account. If you want to share your credit card with a family member, you could look at adding them as a secondary cardholder.
  • Getting access to more credit. If you've had your credit card for a while and just want more funds, you could request a credit limit increase on your existing account.
  • Different features. Sometimes the features on a particular credit card will change for new customers, but not for existing customers. If that's the reason you want to apply for a new version of your credit card, call your provider and see if the updates will be applied to your existing account. If not, you could compare other cards to find one with the features you want.
  • Separating expenses. Having a different credit card for work spending, online purchases or travel can be a convenient way to manage your money. If that's the goal, you could look at getting a dedicated business credit card, a card with 0% foreign transaction fees or one with other benefits based on what you plan to use it for.

Written by

Richard Whitten

Senior Money Editor

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Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

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Richard has written 763 Finder guides across topics including:

• Home loans
• Credit cards
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