Credit card application tips
Hint: your credit history and debt ratio will play a role.
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When you want a new credit card it only takes around 10 to 20 minutes to apply online, and you'll usually get a response within 60 seconds of submitting the application. But if you rush your application, it could hurt your chances of being approved and leave a mark on your credit history. So here are 7 tips to help increase your chances of being approved.
7 tips to boost your chances of credit card approval
1. Check your credit score.
When you apply for a credit card, lenders check your credit score to determine how creditworthy you are. Before you make your application, check your credit score first to understand where you stand and how likely the lender is to approve your application. If your score is less than perfect, you can work towards improving it before you apply to increase your chances of approval.
2. Pay bills on time and work on improving your score.
If your score is low, work on improving it before you apply. Your score could be low for a range of reasons, including bills you haven't paid or delayed repayments for another loan. You can start by ensuring you pay all your bills on time. Or you can find out more about applying for a credit card with a low credit score.
3. Pay off smaller debts.
If you have a number of open credit accounts, including another credit card or a buy now pay later (BNPL) arrangement, work towards paying it off. Regular repayments can help improve your score. You should also look into closing off smaller credit accounts by paying off those debts. A high ratio of debt can impact your credit score, so the more you pay off the better your chances.
4. Check eligibility criteria.
Lenders will consider things like your age, citizenship and credit score. There will also be income and employment requirements to ensure you're able to repay the loan. Find a card that you're eligible for, and don't apply if you don't meet their minimum requirements.
5. Don't apply for too many cards at once.
If you've narrowed down your options, it may be best to pick a single card and lender. This is because every credit application results in a hard credit check. Too many applications will result in many hard credit checks, all of which will be recorded on your credit report. Not only could this bring down your score, but the lender will also consider it a red flag.
6. Apply for a reasonable limit.
Aim to keep your debt ratio low and apply for a reasonable limit. It may be nice to have a card with a $10,000 limit, but your chances of approval are higher if you keep your limit low. Ensure the limit is well within your ability to repay it.
7. Try to avoid using BNPL too much.
Buy now pay later services offer interest-free finance and flexibility, but lenders don't like to see too many BNPL transactions in your bank statements. It can indicate that your spending habits are not responsible.
And finally, don't forget to compare credit cards to ensure you're getting the best deal and the features you want.
Compare and apply for a low rate credit card
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What happens after I submit my application?
If you applied for a credit card online, you should get a response within 60 seconds of submitting your completed application. When you're successful, you will receive account details and your new card should arrive in approximately 10 business days (although it could be longer in some cases). 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 15 minutes. To improve your chances of approval, compare your options, check that you meet the eligibility criteria and take the time to review your application before you submit it.
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Ask an Expert
Hi. I just applied for Anz rewards black card today. After talking back and forth with the Anz consultant about converting my rewards points to Qantas frequent flyer points. She said this can be done. But after reading all the fine prints and on here. Anz rewards black card cannot be converted to Qantas points. My application is not approved yet as had to provide more info.
My questions are:
1. can I cancel the application as it is clearly miscommunicated to me and not what I am after.
2. what ramification does this cancellation have if I want apply for a credit card that suits at a later date
3. Does this affect my credit rating. If so, Should I just keep it for 12 months then cancel?
Thanks
Hi Jen,
Thanks for your inquiry.
1. You can cancel this application by contacting ANZ customer service. We would recommend asking for a record of your interaction with them, preferably by email.
2. The general rule is not applying for more than one credit card per 3 months.
3. Credit ratings take your loan applications into account. Whilst we cannot comment on exactly how much this affects your rating, we can say that banks see what you have applied for which may impact your chances of being approved if you apply too frequently.
It is possible that you could ask ANZ to shift your application to the ANZ Frequent Flyer black, which provides Qantas instead of Rewards points.
Best,
Jonathan
Hi
Is it best for me to change my license over to the state I have moved to before applying for a credit card?
Thanks
Hello Dane,
Thank you for your question.
It is not necessary for you to change your license. Most (if not all) creditors would weigh more the authenticity and correctness of your identification and the other documents.
Please take note that there are credit card companies that may request a proof of your residence. If this happens, you only need to provide them an updated paperwork for verification. Don’t forget to talk to your issuer if you need to move out in the future.
Hope this helps.
Cheers,
Jonathan
Hi, I have just accepted an international teaching position for 2 years and leave Perth in August. Is there any chance that an Australian bank would give me a credit card based on my foreign employment contract for the 2 year period Aug 17-Aug 19? Obviously, it would be more difficult to obtain a credit card from a foreign bank in the country I’m moving to, so just wondering what my chances are here before I leave Australia?
Thanks.
Hi Hayley!
Thanks for reaching out.
We do have a list of credit cards for temporary residents. Please check that list and explore your options. After you’re done comparing your options, you can then select the “Go to Site” button to learn more.
Most of the card issuers would require your passport, visa, proof of employment with at least 6 months remaining, and pay stub.
Kindly ensure you meet minimum eligibility requirements.
Hope this helps.
Cheers,
Jonathan
Hi Jonathon, thanks for your reply. My original post wasn’t very clear…
I am an Australian – born here and lived here all my life. I have accepted a teaching position in China for 2 years, so will be moving there in August. I was trying to find out if any of our Australian banks would even consider giving me a credit card, knowing that I’ll be out of the country for 2 years and working for a foreign company.
Thanks
Hi Hayley!
Thanks for getting back to us and clarifying your inquiry. We do appreciate that! :)
You may visit this our page about some of the best credit cards to use overseas. This is our guide and list of card issuers that may approve you for your plans to use this card overseas.
Hope this helps.
Cheers,
Jonathan
I recently applied for ANZ credit card, what is the status on my credit car application?
Hi Selva,
Thanks for getting in touch.
Please note that you have come through to finder.com.au we are a financial comparison website and general information service and we do not represent any credit card company like ANZ.
As we don’t have access to your application, I’m afraid you may need to get in contact with ANZ directly to follow-up your application. For your convenience, I’ve forwarded to your email the phone number of ANZ.
I hope this has helped.
Cheers,
May
I recently applied Citibank signature and got rejected. It is not related to the credit rating though. And they just simply said have not met our credit criteria. Would like to apply for another card with different provider. Is it safe to apply or should I wait? How many is too many in a specific period of time?
Hi CorTan,
Thanks for your question and we’re sorry to hear about your rejected application.
You may not have met the eligibility requirements (such as income, credit score, provided necessary documents) when applying.
No, it’s not a good idea to apply for another credit card straight away as applying for multiple credit cards within a short period can reflect badly on your credit score and decrease your chances of approval in the future.
You should wait a few months before applying for another card. In the mean time, you can start comparing other credit cards and making a shortlist of cards you’re eligible for. Make sure to read all of the relevant product disclosure statements and contact the providers to discuss your chances of approval before applying.
I hope this helps,
Cheers,
Sally