A Quick Look At Credit Card Pre-Application Checks

Information verified correct on October 21st, 2016

What are the pre-application checks that banks make when you do a credit card application online?

There are a few pre-application checks that card issuers undertake. They do them to make sure that the person applying for a credit card is going to be a safe risk for them to have as a client. These checks help them determine whether or not someone should even be considered for their card. Once they know that an applicant is eligible they will go further into their data to figure out how much their spending limit and interest rate should be. Those who have better credit histories and higher incomes are likely to get better rates and credit limits, while those with questionable incomes and credit files will get higher interest rates and lower limits. Find out what your credit history looks like.

Credit Card Pre Application Checks

    • Identity - The first thing that any credit card issuer will do is verify that person applying for the credit card is actually the name on the credit card application. They do this mostly to protect themselves. If the credit card issuer gives a card to someone who has stolen an identity they will wind up with a bill that no one is going to pay. Credit card identity theft costs card issuers a significant amount of money each year. To avoid this the card issuer will ask for proof of identity, if you are unable to provide this you will not make it through even the pre-application process.

How to Avoid Credit Card Fraud

  • Income - The income check is done to make certain that the person applying for the credit card is being truthful about how much money they make. The recent credit and financial crisis has been blamed in part, on credit card companies for giving people more credit then they could afford or for not verifying their income. Many card companies are using new technology to help them verify income levels so they know immediately what an applicant makes per year.
  • Credit History - Your credit history indicates to the card issuer how good you are at paying bills on time and how much debt you currently carry. They need to know this to determine if you can take on more debt and if you will pay their bill on time.

When you make a formal credit card application, the card issuer will go further into your personal and financial history. They will check on the length of time you have been with your current and previous employers. They may even check to see how often you move and exactly what kind of defaults are on your credit file. This is all done to protect the card company from someone who will not pay their bill. However, you should also consider it a protection for you because it either protects you from owning a card you cannot afford or from having to pay the costs of others who do not pay their bills.

Learn more about Credit Card Application

St.George Vertigo Visa

St.George Vertigo credit card

The St.George Vertigo credit card will offer you a low interest rate on purchases, a low rate on balance transfers, and a low on-going annual fee.

  • $55 p.a. annual fee
  • 1% p.a. for 12 months (reverts to 13.24% p.a.) on purchases
  • 0% p.a. for 18 months on balance transfers
  • Cash Advance Rate of 21.49% p.a.
  • Up to 55 days interest free
Back to top
Was this content helpful to you? No  Yes

Related Posts

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

Credit Cards Comparison

Rates last updated October 21st, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months (reverts to 13.99% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $59 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

Ask a question