Credit card application tips
Your credit history, income and the actual credit card are just some of the things that influence an application. Here are 8 tips to increase your chance of getting approved.
Key takeaways
- Only 9% of Australians report being rejected for a credit card, according to Finder data.
- Improve your approval chances by paying bills on time, clearing small debts and avoiding multiple applications at once.
- Every $5,000 of credit card limit can reduce your home loan borrowing power by up to $25,000.
Credit card applications only take around 10 or 15 minutes online and you can usually get a response within 60 seconds. But if you don't know what you need to apply or you're worried about being approved, these credit card application tips are a starting point that can help you increase your chances of approval.
Tips to get approved for a credit card in Australia
1. Check your credit score.
When you apply for a credit card, lenders check your credit report as part of their assessment. The higher your score, the less "risky" you are. You can get a copy of your credit score for free in the Finder app, and we'll send you an update on your credit score every month. You can also contact credit score providers like Experian and Equifax for a free copy of your report, though each agency has different rules around how often you can access it (usually once every 3 months).
2. Pay bills on time to improve your score.
If your credit score is on the lower side, paying bills on time is one way to help build good credit history. It also shows lenders that you're responsible with money, even for bills that aren't on your credit report.
3. Pay off smaller debts.
If you have existing cards or debts, paying them off or closing some of them can help improve your chance of approval. This is because lenders consider your financial commitments when you apply. So having fewer bills can help show that you're able to service a new credit card.
4. Check the eligibility criteria.
Before you apply for a credit card, you need to confirm you're eligible for it. The criteria typically includes your Australian residency status, income, employment and credit history. If you don't meet all the requirements, choose a different credit card or work towards becoming eligible.
5. Don't apply for too many cards at once.
Applying for a few cards in a short amount of time can have a negative impact on your credit score, because each application is listed on your credit report. Most lenders also consider multiple applications as a red flag, regardless of your credit score.
6. Apply for a reasonable limit.
As part of Australia's credit card regulations, lenders must assess your ability to repay the entire credit limit over 3 years (with interest). So while it may be nice to have a card with a high limit, your chance of approval can increase if you keep your limit low.
7. Avoid using BNPL too much.
Buy now pay later (BNPL) services offer interest-free finance and flexibility. But too many BNPL transactions in your bank statements can indicate that your spending habits are not responsible.
8. Lower your limits.
If you have a credit card already and you're applying for another one – either to use as a second card, or to replace your existing card – reduce the limit on this card to the lowest amount you're comfortable with. This will reduce your overall debt-ratio, giving you a greater chance of being approved for your new card.
Wondering if you'll get approved?
Only 9% of Australians say they've been rejected for a credit card, according to our consumer sentiment tracker. 80% of Australians say they've never been rejected for any products at all.
What happens after I submit my application?
When you apply for a credit card online, you should get a response within 60 seconds of submitting your application. If you're successful, you will receive account details and your new card should arrive in 5 to 10 business days.
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 10 minutes. To improve your chances of approval, compare your options, check that you meet the eligibility criteria and make sure you have up to date paperwork, like recent payslips, to avoid delays.
Our expert says
"It's important to understand the impact credit cards have on your home loan application. The general guidance is that every $5,000 worth of credit card limit you have, reduces your borrowing power by up to $25,000. So if you're applying for a credit card but you're interested in getting a home loan in the next 3-6 months, it might be worth holding off and getting a new card after you've secured your mortgage. Banks look at the overall limit, not the balance, when assessing your application – so sometimes, it pays to wait."
What is the minimum credit score for a credit card in Australia?
Each credit reporting agency uses slightly different metrics and rankings; some are a number out of 1,000, others go up to 1,200. Generally, the minimum credit score you need for a credit card in Australia is a 'good' score, which is roughly:
- Experian: 500 to 699 is a "good" credit score
- Equifax: 661 to 734 is a "good" credit score
Finder survey: How many times do Australians typically apply for a credit card?
| Response | |
|---|---|
| 1 | 34.41% |
| 2 | 21.56% |
| 0 | 21.2% |
| 3 | 10.78% |
| 4 | 4.49% |
| 5 | 3.95% |
| 7 or more | 2.88% |
| 6 | 0.72% |
Source: Finder survey by Pure Profile of 1113 Australians, December 2023
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This is my ref no plz check the status and get back to me
Hi Vishal,
Please note that you have come through to finder.com.au, not a provider. As such, we’re unable to check the status of your application. You’ll need to contact your provider to confirm this information. If you can confirm the provider you’ve applied with, we may be able to guide you in the right direction.
I hope this has helped.
Cheers,
Sally
how is my credit card application progressing
Hi Sharon,
Thanks for your question.
You may have to directly contact the credit card provider to check your card application. You can find this guide on how to check your credit card application status useful to see application details outlined for every credit card issuer. Please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered on your application.
I hope this has helped.
Sharon
I got conditional aaproval for a coles mastercard, is this approved? I have sent through the paperwork they asked for. Just looking for clarification.
Hi Barb,
Generally if you have been conditionally approved, and the documentation you’ve sent in supports everything you’ve stated in your application, then your application should go through.
Cheers,
Shirley
How is my application progressing?
Hi Ernest,
Thanks for your question.
You may have to directly contact the credit card provider to check your card application. You can find this guide on how to check your credit card application status useful to see application details outlined for every credit card issuer. Please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered on your application.
I hope this helps.
Cheers,
Jacob
My salary is $200,000 p.a. I want to buy a credit card with limit of $15,000 to $20,000. Is it possible?
Hi Sonam,
Thanks for your question.
A credit limit is assigned based on the information you provide during the application. You can request a certain credit limit when you apply for a card, but the final say will rest with the credit card issuer. You may refer to our comparison of high credit limit credit cards to find a suitable card for you. 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.
I hope this helps.
Cheers,
Jacob