How To Get Your Credit Card Application Approved

Information verified correct on September 23rd, 2016
man with approved credit card application

If you’ve had troubles in the past to a credit card application approved then fear no more as with our handy guide you should be successful in applying for any credit card from herein.

When credit card applicants get denied it is usually for the reasons outlined below. In short, they have:

  • A bad credit file rating.
  • They don’t earn enough income according to the card issuer’s stipulation.
  • They’ve had delinquent accounts.
  • Their financial history is too short or unstable.
  • Or they’ve had a lot of queries on their credit file which often indicates trouble.
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Receive email alerts whenever specific changes occur on your credit file for 12 months. You also receive a copy of your credit file despatched within one working day..

What information is included in your credit file:

  • Details of consumer credit enquiries
  • Details of overdue consumer credit accounts
  • Commercial credit enquiries
  • Details of overdue commercial credit accounts
  • Bankruptcy & Court Judgements
  • Writs & Summons
  • Information on your current relationship with a credit issuer
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Why might a bank reject my credit card application?

Having a bad credit file rating

If your credit is bad, it means that lenders have had problems with you in the past. Those get recorded in a national database and any potential lender has access to your credit file. Therefore it is important to ALWAYS pay your bills on time!

Setting up direct debit certainly helps with this process. Alternatively you can develop a proven system that works to remind you to pay your bills on time. Failing to do so will damage your credit rating.

To find out where you stand with your credit file you can obtain a copy of it by visiting the MyCreditFile website and pay $29.95 incl. GST to be faxed, mailed or emailed a copy within 24 hours.

A lack of income

Some card issuers will not approve you if your income level is below what they stipulate. The American Express Platinum credit card for example requires you to earn $100,000 minimum or else you will not be approved, even if you pay your bills on time.

This has a lot to do with their own financial security as they offer you additional insurance – at no extra cost, plus much more. Most credit card issuers publish their income requirements for any given card in their terms and conditions. Make sure to check those before you apply. 

Delinquent accounts

If you ever had a delinquent account to your name – meaning you were 60 days past due with your payments – then chances are your credit card application approval will not happen. This information usually becomes nullified after five years have passed.

Lenders want to be sure that you can handle repayments because if you don’t, they stand to lose their money.

A short or unstable financial history

Most lenders want to see stability to get your credit card application approved for you. If you are constantly changing jobs or your place of residence it will look bad on your credit file. This indicates that you are not reliable enough – you can’t hold a job or a residence – a big warning sign for lenders.

Before you apply for any credit card be sure to have a solid employment history with a minimum six month track record.

If you have existing bad debt on your record you can take pro-active action to show potential lenders that you are serious about fixing your past errors. Pay off all past debts before applying for a credit card (excluded in this tip would be a home loan).

Too many credit file queries

Whenever you apply for a line of credit, a loan and a credit card, potential lenders can view your credit file. Each time this happens, the activity will be recorded in your file for a total of five years. Naturally any lending institution can see how many refused applications you’ve had in the past according to the activity shown on your file.

Whether you do your credit card application online or offline, you need to understand what’s expected of you before you take that step to increase your chances of getting your credit card application approved.

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6 Responses to How To Get Your Credit Card Application Approved

  1. Default Gravatar
    Kim | October 26, 2015

    Too many credit file queries
    On my file

    • Staff
      Sally | October 27, 2015

      Hi Kim,

      If you have too many credit file queries on your credit file, you may find that you’re unable to apply for a credit card and you may need to consider credit repair.

      Please see our credit repair guide for further tips and information.

      I hope this has helped.

      Thanks,

      Sally

  2. Default Gravatar
    Barry | January 29, 2015

    I am a discharged bankruptcy from oct 2014, my wife and I earn a fairly good wage per month.We would like to get a personal loan to pay a couple of credit cards , is there any chance?

    • Staff
      Jonathan | January 30, 2015

      Hi Barry,

      Thanks for your inquiry.

      Please see this page for more information on the types of personal loans available and their application criteria.

      I hope this helps!

      Cheers,

      Jonathan

  3. Default Gravatar
    Jules | April 10, 2013

    Hi
    I’ve had problems paying back credit cards in the past (around 10 years ago). Have finally paid back the last one a few years ago. I now have a car loan which I got a year ago and I haven’t defaulted on at all. I would like to try a credit card again but am a bit worried. What do you think my chances are?
    Thanks
    Jules

    • Staff
      Jacob | April 10, 2013

      Hi Jules. Good question. Check your credit file first to see what it contains. A credit card is a product for people with good credit only, so if you still have a mark on your credit file from a previous account that was in arrears, it may affect your chances of a successful application. If you’re worried about your chances of successfully applying for a credit card, best to apply in person. Jacob.

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