How to Apply for a Credit Card in Australia: Step-by-Step

Applying for a credit card in Australia can be simpler when you understand the usual process, eligibility rules, and what lenders typically assess. While many lenders follow a similar application journey, small differences in criteria can affect the outcome¹. This guide explains how credit card applications generally work, what documents you may need, how approvals can work, and practical ways to strengthen your application—especially if you’re applying for the first time.

Understanding the process may help you avoid avoidable rejections, protect your credit score, and choose a card that better suits your financial situation².

Before You Apply: Is a Credit Card Right for You?

A credit card can be useful for some people, but it may not suit everyone. Before applying, consider both potential benefits and common risks.

Benefits of credit cards in Australia

• Interest-free periods are commonly available (often around 44–55 days) if you pay the closing balance in full by the due date³
• Fraud protection policies may apply for unauthorised card transactions, depending on the provider and circumstances⁴
• Convenience and cash-flow flexibility for emergencies or short-term expenses (when managed carefully)
• Credit-building potential, as on-time repayments may contribute positively to your credit report⁵

Potential drawbacks

• Interest charges can apply if you don’t repay the balance in full by the due date
• Fees may apply (for example annual fees, late payment fees, and cash advance charges)
• Overspending risk, especially if your credit limit is higher than what you can comfortably manage

Quick self-check before applying:

• Can you pay the balance in full most months?
• Do you have stable income?
• Are you comfortable managing repayments and due dates?
• Do you understand fees, interest rates, and what triggers charges?

If you answered “no” to most of these, it may be worth improving your budget and repayment plan before applying⁶.

Step 1: Understand Credit Card Eligibility Requirements in Australia

Age and residency requirements

To apply for a credit card in Australia, you generally need to be at least 18 years old⁷. Acceptable residency statuses often include:

• Australian citizens
• Permanent residents
• New Zealand citizens on a Special Category Visa (SCV)

Many lenders may not approve credit cards for some visa categories, such as:

• Visitor visas
• Working Holiday visas
• Student visas
• Bridging visas without work rights

Some lenders may consider temporary visa holders on a case-by-case basis, but eligibility can be limited⁸.

Income requirements

Minimum income thresholds vary depending on the type of credit card⁹. (Reformatted as bullet lists to avoid tables.)

• Basic / low-fee cards: often around $15,000–$25,000 (typical minimum income range)
• Rewards cards: often around $35,000–$50,000
• Premium cards: often around $75,000–$100,000+

Accepted income sources may include:

• Full-time or part-time employment
• Casual employment (usually where there is a consistent history)
• Self-employment (typically requires additional documents)
• Some government benefits (depending on the lender)

Lenders usually focus on regular, ongoing income rather than one-off payments¹⁰.

Credit history requirements

Australia uses comprehensive credit reporting, which can allow lenders to view details such as repayment history, credit limits, outstanding balances, and defaults¹¹.

Some guides refer to broad score bands like:

• Good credit: around 650+ (may improve the likelihood of approval, depending on the lender)
• Fair credit: around 550–649 (may have fewer suitable options)
• Poor credit: below 550 (may have higher risk of rejection)

Common factors that may lead to a decline can include:

• Defaults over $150 that are 60+ days overdue
• Bankruptcy or debt agreements
• Multiple recent credit applications
• Unpaid BNPL accounts (depending on reporting and lender policy)¹²

You can usually check your credit score for free through official credit reporting bodies¹³.

Existing debt considerations

Lenders commonly assess debt-to-income (DTI), which looks at how much of your income goes toward debt repayments¹⁴.

Simple way to think about it:
Total monthly debt repayments ÷ gross monthly income

Existing debts (like personal loans, car loans, or other credit cards) may reduce borrowing capacity—even if repayments are up to date¹⁵.

Step 2: Decide What Type of Credit Card You Need

Choosing a card type that matches your needs and spending habits may help reduce costs.

Low-rate credit cards

• Lower purchase interest rates (often around 10–14%)
• Fewer rewards features
• May suit people who sometimes carry a balance (interest may still apply)¹⁶

Low-fee or no-annual-fee cards

• Often around $0–$99 annual fee
• May have higher purchase interest rates
• Can suit occasional use or beginners wanting lower ongoing costs¹⁷

Rewards credit cards

• May earn points or cashback
• Often have higher annual fees (for example $150–$400+)
• Value depends on spending patterns and whether you can avoid interest charges¹⁸

Travel and frequent flyer cards

• May include airline points, travel insurance, or lounge access
• Often have higher income thresholds
• Foreign transaction fees may still apply depending on the card¹⁹

Balance transfer cards

• May offer a promotional 0% interest period (often 6–24 months) on transferred debt
• Balance transfer fees can apply (often around 1–3%)
• Higher reversion interest rates may apply after the promo period ends²⁰

Secured and specialist cards

• Backed by a cash deposit (security)
• Often aimed at people building or rebuilding credit history²¹

Step 3: Gather the Required Documentation

Identification documents (100-point check)

Many lenders use Australia’s 100-point ID system²². Common documents include:

• Passport
• Driver’s licence
• Medicare card
• Birth certificate

Some lenders use digital ID verification via smartphone apps²³.

Proof of income

Depending on your situation, a lender may request:

• Your last 2–3 payslips
• Employment contract or letter
• Last 1–2 years’ tax returns (often for self-employed applicants)
• Bank statements showing income deposits²⁴

Financial information

Applicants are typically asked to disclose:

• Assets (for example savings, property, vehicles)
• Liabilities (for example loans, credit cards, BNPL accounts)
• Living expenses (for example housing, utilities, food, transport)

Lenders may verify this using bank statements and credit reports²⁵.

Step 4: Compare Credit Card Options

Key comparison factors

• Purchase interest rate
• Annual and ongoing fees
• Interest-free days
• Rewards earn rate (if applicable)
• Foreign transaction fees
• Credit limit flexibility²⁶

It’s usually helpful to review the Key Fact Sheet, which standardises costs to make comparison easier²⁷.

Using comparison tools

Independent comparison sites and ASIC’s MoneySmart resources can help you compare cards more objectively²⁸. Be cautious with promotional offers where introductory rates may change later.

Step 5: Complete the Application Process

Online applications

Many Australians apply online. The process commonly includes:

• Personal and financial details
• Identity verification
• Document upload (if required)
• Credit check

Timeframes vary depending on checks²⁹.

In-branch applications

This may help if:

• Your situation is complex
• You’re self-employed
• You prefer face-to-face assistance³⁰

Phone applications

Some lenders offer phone applications, though processing times can vary³¹.

Step 6: Navigate the Approval Process

Conditional approval

Conditional approval usually means your application has passed an initial review but still needs verification checks³².

Credit assessment

Lenders commonly assess:

• Credit score and report
• Income stability
• Expense information
• Employment history

Assessment timeframes can vary and may take anywhere from 1–10 business days depending on the lender and your circumstances³³.

Choosing your credit limit

A higher limit can reduce future borrowing capacity because lenders may assume the full limit could be used. Requesting a modest, realistic limit may improve your application strength in some cases³⁴.

Final approval and card issuance

If approved:

• A digital card may be available quickly (depending on the lender)
• A physical card may arrive in around 5–10 business days
• Activation is usually required before use³⁵

Step 7: Set Up and Start Using Your Card

Card activation

Common activation methods include:

• Mobile banking app
• Online banking
• Phone activation³⁶

Digital wallet integration

Many cards support Apple Pay, Google Pay, and Samsung Pay, which use tokenisation to help protect card details during payments³⁷.

Setting up repayments

Common best practices include:

• Setting up auto-pay for the full balance each month (if you can)
• Avoiding minimum-only repayments where possible
• Monitoring due dates and statements carefully³⁸

Tips to Improve Your Credit Card Approval Chances

Before you apply

• Check your credit report
• Reduce outstanding debts where possible
• Avoid making multiple applications close together
• Prepare accurate documents and expense information³⁹

During application

• Provide honest and consistent information
• Request a realistic credit limit
• Complete all sections fully

If your application is declined

• Ask for the reason (lenders may provide a general explanation)
• Consider waiting before reapplying (some guidance suggests 3–6 months can help, depending on the reason)
• Address the issue identified (for example correcting errors on your credit report or reducing debt)⁴⁰

Alternatives to Traditional Credit Cards

If credit card approval is difficult or a credit card doesn’t suit your needs right now, alternatives can include:

• Debit cards with online purchasing
• Secured credit cards
• Buy Now Pay Later services (fees and missed-payment consequences may apply)
• Personal loans (which may offer fixed repayments, depending on the product)

Apply now: https://www.credit24.com.au/au/apply/login

Applying for Credit Cards: FAQ

How long does approval take?

It can range from minutes to around 10 business days, depending on verification requirements and the lender’s process⁴¹.

Does applying affect my credit score?

A credit card application generally creates a hard enquiry on your credit file, which can affect your score⁴².

Can I apply for multiple cards at once?

Generally not recommended because multiple enquiries in a short time can reduce approval odds⁴³.

What if I have no Australian credit history?

You may need to start with a lower-limit card or a secured card while you build local credit history⁴⁴.

Sources

Credit card application processes – Australian Securities and Investments Commission (ASIC)
Credit reporting in Australia – ASIC MoneySmart
Interest-free periods – ASIC MoneySmart
Credit card fraud protections – Australian Banking Association
Credit reporting impact – Equifax Australia
Responsible credit use – ASIC
Minimum age requirements – ASIC
Residency eligibility – major Australian banks’ credit card T&Cs
Income thresholds – ASIC MoneySmart
Income assessment rules – ASIC
Comprehensive credit reporting – OAIC
Default rules – Equifax Australia
Free credit reports – ASIC MoneySmart
Debt-to-income ratios – APRA guidance
Credit assessment practices – ASIC
Low-rate cards – MoneySmart
No-fee cards – ASIC
Rewards valuation – ASIC
Travel card fees – ASIC
Balance transfer risks – ASIC
Secured credit cards – ASIC
100-point ID system – AUSTRAC
Digital ID verification – AUSTRAC
Proof of income requirements – ASIC
Expense verification – ASIC
Credit card comparison factors – MoneySmart
Key Fact Sheets – ASIC
Comparison tools – ASIC MoneySmart
Online approvals – Australian Banking Association
Branch applications – major banks
Phone applications – bank disclosures
Conditional approval – ASIC
Assessment timeframes – Australian Banking Association
Credit limits and borrowing power – ASIC
Card issuance – major banks
Activation security – Australian Banking Association
Digital wallets – Reserve Bank of Australia
Repayment strategies – ASIC
Approval tips – ASIC
Reapplication rules – Equifax
Approval timeframes – banks
Credit enquiries – Equifax
Multiple applications risk – ASIC
Building credit history – ASIC MoneySmart

Disclaimer
IPF Digital Australia Pty Ltd, trading as Credit24, ABN 59 130 894 405. Australian Credit Licence 422839. The information in this article is general in nature and does not consider your objectives, financial situation, or needs. Lending criteria, fees, and charges apply. For product details, eligibility requirements, and full terms and conditions, visit www.credit24.com.au.