How to Apply for a Credit Card So You’ll Get Approved

The bank will check your credit score when you apply for a new card. Banks do their due diligence to ensure you’re capable of handling the line of credit and are currently in a position to do so. 

You can access a free credit report every three months from any or all of Australia’s three major credit reporting agencies: Equifax, Experian, and Illion. You can access a free credit report every three months. While it’s a good financial practice to do this once or twice a year, it’s even more crucial if you’re applying for credit or focusing on increasing your score. 

There are options available for consumers with a low (or no) credit score, it’s better to give yourself time to boost your creditworthiness by building good financial habits.

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If your score needs some work, aim to get it in the green before applying for credit card products. 

To improve your credit score: 

• Make payments on time. 
• Keep balances low on existing credit cards. 
• Avoid new debt. 

For Equifax, credit enquiries, applications, and repayment history account for over 75% of the score, so focus on those straightforward steps to boost your approval odds. If you can, wait a couple of months to let those positive habits reflect on your score. 

Alternatively, maybe you spotted a mistake that needs fixing, or there are behavioural changes that need to occur to increase your score. If so, contact the credit reporting agency to correct any errors on your credit report.

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When you apply, you’ll be asked similar questions no matter which company is issuing the card.

Similar to a credit report, you’ll need to share confidential personal information to prove your eligibility, providing at least one form of ID such as a driver’s licence, Medicare card or passport. And because credit scores don’t reflect your income, they’ll ask for proof that you can make payments. 

Get all your supporting documents together to help the bank best assess your situation. These additional documents include:

• Employment details or other acceptable income types.
• Payslips and most recent tax return.  
• What you own (assets) and owe (debts). 
• General living expenses.

Compiling all your information and completing the online application is relatively straightforward. The preparation leading up to the application is most important, so give yourself enough time. 

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If you have bad credit, you may not get approved for a card with a large sign-up bonus and lucrative rewards. Each credit card application can temporarily ding your credit scores, so consider types of credit cards that offer ‘soft’ credit checks or pre-qualification.

You can also call the card issuer and ask about a specific card’s requirements.

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Get clear on what features are most important to you. Is it a low interest rate, fewer fees or more rewards? Knowing this will help direct your search.

You might like or have experience with one bank, but this doesn’t mean they have the best credit card options for your needs. Beyond the ‘big four’, there are plenty of other smaller banks and financial institutions. 

Australians rate Bendigo Bank, ING, St.George Bank, Suncorp Bank, Bankwest, and many others higher than the big institutions[1]. You have options. Consider the banks, the credit products and offers. 

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Once you’ve shortlisted a couple of products you’re interested in, call the banks. Yes, you can apply online — as the banks will encourage you to do — but talking to someone on the phone can provide more clarification and confidence in your choice.

Banks want you as a customer, and they’re more likely to offer better deals over the phone — much like a representative from a telecommunications company can. This is the step most people skip or simply do online, but you’ll make more informed decisions by speaking to people who know these products inside and out. 

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How long will you keep this credit card? Are you signing up with an offer that will only last 12 months? Or, have you found the ideal product that you plan to keep for years to come? 

Keep your strategy front of mind. Know when and how you’ll use your new credit card, how long you plan to keep it, and your ideal limit. You might be eligible for a higher limit, so be conscious of how much you’re comfortable repaying.   

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Complete the online application for the best credit card for you. Avoid applying for more than one product at a time. This will damage your credit score and erase all the good work you’ve done to increase it. You don’t want to have a red mark against your name with separate lenders either, as this could hurt you in the future. 

Don’t request a huge credit limit straight out of the gate. Apply for a reasonable limit that you know you can handle. Once you’ve been a customer for some time with a positive track record, you can increase the limit. The lower the limit, the higher your chances of approval.

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