Instant Approval Credit Cards

Instant Approval Credit Cards: Frequently Asked Questions

Q: How does it work? A: When you apply online, your personal financial data is automatically checked with the national credit bureau, calculations are made to decide whether you qualify and an automated response is sent directly. The whole process usually takes under 60 seconds, although some banks can take longer.

Q: Who is eligible? A: Legibility requirements usually include citizenship or residency in Australia, a good credit rating and n income above the threshold applicable to the specific credit card.

*Q: What information do I need to apply for an instant credit card? On the application form you are required to provide a set of personal data – your name and address, previous address if you recently moved, employer, income and information on creditors and any outstanding debts.

Q: Is my credit rating important for getting approved? A: Yes, it’s crucial. Your credit rating is the key consideration for banks when they decide whether or not to approve you for one of their credit cards. Since the application is completed online and the decision is made automatically, approval or non-approval is fairly inflexible. You can check your own credit report by applying to a credit checking agency, and it’s a good idea to do this once a year to check that everything is up-to-date and there are no mistakes on your file.

Q: If my application is declined, should I apply for a different card? A: No, this could lead to you being repeatedly declined. Every time you apply for a new credit card, the bank checks your credit file, which includes details on any recent successful or unsuccessful credit card applications. Banks tend to look down on people who apply for multiple cards within a short period of time – they think it’s a sign of careless money management. The best thing you can do is to hold tight for a while before applying again. Failing to do so could mean you’re stuck in a circle of being declined for being perceived as having a higher-risk credit card user.

Q: How do I compare before applying? A: The purchase rate is the first factor to compare; this is the interest applied to any unpaid balance on your monthly credit card statement for purchases. You should also be aware that other transactions, such as cash advances, typically attract higher rates of interest, so familiarise yourself with these before applying. If the card has an annual fee, you should decide whether you can afford it and whether the extras are going to be of any benefit to you.

Q: What about balance transfers? A: An instant approval credit card with the option of a balance transfer allows you to move existing credit card debt to the new card and repay the old debt at a special low interest rate for a fixed period. Make sure the balance transfer deal you choose offers the best combination of interest rates and offer duration to make the most savings. When you are filling in the online application, apply for the balance transfer at the same time so you can start saving straightaway.

Q: What other features should I look out for? A: Some credit cards feature a special introductory offer of a low purchase rate for a fixed period. This can greatly reduce the cost of using your card, but you must be aware of how the interest rate changes at the end of the promotion. Many cards provide membership to rewards schemes including frequent flyer programs, retail rewards and other types of benefit, such as cash back, charity donations and more. If the card you are applying for includes a loyalty program, ensure that you can earn points in the way you like to spend and that you can make use of the rewards.

Q: If my application is approved, am I definitely getting a new card? A: The bank will give instant preliminary approval on condition of you meeting their lending criteria. If it turns out that you don’t actually meet their requirements, that details were missing or inaccurate from the documents you submitted, or that you can’t provide evidence to back up what you claim, then the bank can decline your application.