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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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