A credit report will be requested by the credit card company once they have received your application for a credit card.
This is a step that is never overlooked by the card company since the decision whether to issue you a card or not is based on what they see in this report. Keeping your record free of black marks is the only way to ensure that the door to credit stays open for you your entire life.
Your credit card application and what lenders look for
The first thing a credit card company is going to look at is your payment history. In Australia, negative information about your payments are entered on your credit file and there are no entries if you have been making payments on time. Therefore, if you do not have any entries in the payment history category, this means that you are more likely to be considered for an approval on your application.
Any payments that are more than sixty days past due will be reported to the credit reporting companies. This applies to any utility bills you have to pay and any plan you may have for a mobile phone. Even these small payments need to be made in time every month to keep your credit record clear. Lenders will also look for debts that have become collections, foreclosures, court judgments and writs, liens, and bankruptcies.
The next factor that a lender will take into consideration when deciding if you should be given a card is how much credit you have currently available. The credit card company must decide whether you have enough credit to handle already and if more would only be a burden for you.
Vendors will also screen borrowers by looking at how long you have used credit. If all else looks good and you simply haven’t built up a credit history yet you will often be considered for a card with a higher interest rate to begin with. Later on you will be able to apply for lower interest.
If you have been applying for a lot of different credit within a short amount of time you will appear desperate and may be turned down for a card simply based on that. Try not to apply for too many cards or credit within a short time span.
Credit reports have a big influence on credit card applications so you need to be sure that you keep your record clean at all times. If the lender sees that you have a good credit score your chances of getting approved for a card are very high.Back to top