Credit Card Application
The credit card application process can be long and fraught with risk. We help you through the process to make it quick and painless, and give you all the tips to get approved.
| Interest Rate (p.a.) | Cash Advance Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual fee | Interest Free Days | |||
|---|---|---|---|---|---|---|---|
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See why HSBC is shaking up the credit card market with their no annual fee credit card... |
17.99% p.a. | 21.99% p.a. | 0% p.a. for 6 months | $0 | 55 |   |
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Do not miss out on what everyone else knows is one of the best credit cards on the market. |
13.24% p.a. | 21.49% p.a. | 0.99% p.a. for 12 months | $55 | 55 | |
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500+ rewards programs means you will plenty of choice with your ANZ Rewards credit card. |
19.74% p.a. | 20.99% p.a. | $89 | 44 | | |
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Enjoy the rewards of a platinum credit card, but the interest rate of a standard card! |
11.99% p.a. | 21.74% p.a. | 2.9% p.a. for 12 months | $99 | 55 | |
Filling out a credit card application to the show you in the best light is an important step in acquiring the right card. First you must understand what it means to show yourself in the best light because it certainly does not mean lying. Credit card issuers are smart and they have loads of resources at their disposal. If you falsify any information on your application they will discover it and reject you immediately.
Some credit card companies, like American Express, delve deeply into your application by double checking your work or housing history. By only putting down truthful and honest information you will get the card that you deserve and can afford. Showing yourself in the best light means making sure that you apply for a card that is within your budget. It also means double checking to make sure that your data is accurate. It may even mean waiting weeks or months to fill out the application until your credit file proves that you are not a credit risk. All of these steps improve your chance of getting approved for the credit card. It also improves the chance that you will get lower interest rates and better terms which save you money over the life of your credit card.
What's Available?
Before you begin to apply for credit card, you should get familiar with the types of cards and deals available. Balance Transfer Cards - These are cards that allow you to transfer existing debts over to a new card, in order to consolidate your debts, and pay them off more swiftly. Reward Credit Cards - These cards reward you each time you spend on them by giving you points. These points can then be exchanged for various gifts, rewards and merchandise. Gold and Platinum Credit Cards - These are cards that normally have a higher credit limit, and are aimed at people earning a certain amount of money. There are normally many rewards available, however the interest rates, and annual fees can often be higher with these type of cards. No Annual Fee Cards - This is a credit card that does not charge the normal annual fee for being a member each year. These are just some of the deals available but how do you apply?
What you'll need to apply for a credit card
There will inevitably be variations in what different credit card providers ask for, particularly if you are applying for a more prestigious card, but these are the most commonly requested pieces of information:
- Your personal and contact details, such as full name, date of birth, home and email addresses, home and mobile telephone numbers, and the same for any additional cardholder you wish to include
- Your Australian driver's licence number, if you have one
- Your income details, which generally needs to be at least $15,000 pre-tax for a standard credit card, and higher for more prestigious gold and platinum credit cards
- Your financial details, such as expenditure, debts and assets, including monthly expenses, mortgage payments, outstanding loans, and any property owned
- Your employer's name, address and contact number as listed in the White Pages
- Your accountant's details if you are self-employed
Besides this, you must make sure that you are eligible generally to apply for a credit card, and specifically that you fit the criteria for the level of credit card you want. General requirements are that you are at least 18 years old, a permanent Australian resident, and that you have a good credit history. Specific requirements will be the income criteria that apply to the various levels of card.
Filling Out An Online Credit Card Application
The fastest and easiest way to fill out a credit card application is to do it over the Internet. All of the major card issuers have websites that allow you to input your data and get usually get a response in moments. When you sit down to fill out the application give yourself about fifteen minutes to read everything and type in all your information. Most of the sites allow you to stop and save the form and come back to it later if, for whatever reason, you are interrupted. Be sure that you have your financial information including the address and phone number of your residence and your employer handy. You will also want to have your income and asset information close by to include it on the application.
Applying online is one of the most secure ways to get a credit card. It used to be that we had to fill out paper forms and then send them through the mail to a credit card issuer. That process could be stressful when you consider how easy it would be to steal your identity if those forms wound up in the wrong hands. An online application negates this issue. Bank websites have built in security protections for all of your data. Even as the data is processed it is likely that the receiver at the card issuing company can not even see sensitive information like your account numbers as your application goes through. You can rest easy knowing that it is in both yours and the card issuers interest to keep your personal data safe.
What To Do If Your Credit Card Application Is Rejected
If your credit card application is rejected the first thing to do is find out why. Usually you can call the credit issuer and ask why your application was declined. It might take a little pushing but they will be able to explain which criteria you did not meet or if it was due to negative marks on your file. Sometimes credit issuers reject applications just because you were rejected on that last card application you submitted. If this is the case you might have to keep going back to the previous issuer to find out why they rejected your application. When you find out why see if it is something you can fix. Maybe it was an error on your part in filling out the application. If it was due to a negative mark in your credit file you should see if you can fix that problem.
After you have received an application rejection it is important to wait a couple of weeks before you apply for a card again. The same is true for filling out the initial credit card application. Do not fill out a bunch of applications and hope you get approved for one of them. Start with the card that you want the most, the one that best suits your financial status. If you apply for all of the cards and get rejected then you wind up with several negative marks on your file. But, if you only get rejected for one you can find out why and fix the problem, with only one rejection on your file.
An Approved Credit Card Application
Even if you wind up getting approved for all the cards, that is not necessarily always a good thing. For starters, having lots of credit cards increases the risk of overspending. It also means you will pay annual fees on several cards even though you only need one or two credit cards to manage your finances. Lastly, once you have a credit card it is not always simple just to close that line of credit and again, that action will be reflected on your credit report. If you have really great credit and apply for cards within your budget you will likely be approved. As a matter of fact, the credit issuers will want your business so you could wind up with a pile of cards fairly easily.
When you know that your credit status or income preclude you from most credit cards you should consider getting a secure card. A secure card gives you the convenience of owning a credit card with none of the risk. Instead of getting a line of credit you must back up the credit limit with a cash deposit.
While this does not give you the spending power and freedom of a traditional card it does give you the convenience of one. You do not have to carry cash, just the card and it is accepted anywhere that has the logo of your secure card. More importantly a secure card helps you improve your credit rating. If you have fallen behind in payments or overspent in the past you can show that you are ready for a real credit card by first showing you can handle your secure one. It might take a year or so of using the secure card, but in the end it will be worth the effort.
A credit card application is a door to financial freedom. In this day and age everyone needs to own a credit card. We use them to rent cars and reserve hotel rooms. We use them to make online and telephone purchases. We also use them because they are more secure then cash as they are insured against loss and theft. All you have to do is make sure your credit is in good shape and apply for the right card and you too can take advantage of the benefits of card ownership. Be honest about where you stand financially and what card suits your needs. Be honest when you fill out the application and you will get the card you want.
