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Are you ready to apply for a credit card

What is required to for the credit card application.

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Finding the right credit card is just one piece of the puzzle. Now you need to consider what is required to for the credit card application.

Are you eligible to apply for a credit card?

According to Finder there are almost 16 million credit cards in use across Australia, however, it can be hard to get a credit card if you don’t meet the eligibility criteria. 

If you have multiple rejections of credit card applications (or loans for that matter) this can negatively affect your credit score for future applications. For this reason it is important to understand eligibility requirements and ensure you apply for a credit card limit that you are eligible to apply for. 

Basic eligibility criteria

Due to the nature of a credit card not everyone is able to apply for one. In order to be considered, you must be 18 years or over, an Australian citizen or permanent resident, and have a good credit rating. You must also be solvent (i.e. you haven’t filed for bankruptcy) and be earning enough to pay the credit limit on the card. 

In deciding whether to approve your application, the credit card provider will look into your financial situation, from your income, monthly expenses and other liabilities through to your credit score and the assets you already own (such as a car or property).

Before applying, you should consider:

1. Your credit score: A poor credit score can significantly affect your borrowing power. You can check your score before you apply and take steps to fix mistakes or improve it. Details on how to check your score are provided below.  

2. Your income: If you don’t have a regular income, you may find it difficult getting approved for a credit card. As part of the application process, the bank or lender will look at your income to determine whether you could manage repayments. When applying for a credit card, nominate a credit limit that suits your needs and will allow you to meet repayment requirements each month. 

3. Your spending habits: If your credit card is approved, how do you plan to use it? Do you plan to pay off your credit card in full each month? Will the card be in your wallet just for emergencies, or do you plan to use it regularly? Working out your spending habits will help you decide what type of card (and credit limit) is most suitable for your needs, so you don’t end up applying for the wrong type.

4. How much you can afford to pay: Most credit cards have annual fees and charges associated with using them. You should consider the fees and charges, and whether you can afford them, when determining if the credit card you are applying for could be right for you.

What’s your credit score?

Your credit rating or ‘credit score’ is a number that indicates to lenders your trustworthiness as a borrower. The higher your credit score, the more credit-worthy you are. 

A credit score in Australia will usually be between 0-1000 or 0-1200. If you have a score of 700-749 (out of 1000) this is considered ‘good’, with scores of 750 and up (out of 1000) considered ‘excellent’. Scores under 580 (out of 1000) fall into the ‘poor’ range, which may impact your likelihood of having a credit card approved. 

You can access your credit score through websites including www.getcreditscore.com.au. Some websites will give you a score in minutes after verifying information such as your identification, address, and mobile number. You may wish to compare your credit score with a couple of bureaus to check for accuracy.

Your credit score can be affected by things like unpaid debts, repayment history, previous credit applications, and court judgments. While a low credit score does not automatically mean your application for a credit card will be denied, lenders may perceive you as a higher-risk borrower. 

The next step in applying for a credit card

Once you know what type of credit card you would like to apply for, and you believe you are eligible to apply based on your credit score and the card’s eligibility criteria, it’s time to get your documentation together and submit an application. 


This article is intended to provide general information of an educational nature only. It does not have regard to your objectives, financial situation or needs and must not be relied upon as financial product advice. Before you act on this information, you should consider whether it is appropriate for your circumstances. Information in this article is current as at the date of publication. Applications subject to credit approval and fees and charges are payable. Terms and conditions apply and are available on request.

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