The lowdown.
What is an instant approval credit card?
An instant approval credit card provides you with an almost instant confirmation (generally within 60 seconds of application) regarding whether you’re eligible for a card. However, this doesn’t always mean that your approval is guaranteed.
An instant approval generally indicates that you have met the eligibility requirements for the card you applied for. Depending on the provider’s policies and your financial circumstances, the approval may be conditional. This conditional approval indicates that your application has passed an initial automated check, but the issuer may still need to verify your identity and financial details before granting full approval.
How long does an "instant" decision take?
When you apply for an instant approval credit card, banks typically provide a response within 60 seconds of submission, making it one of the fastest application processes available in Australia.
However, approval for one of these cards is not guaranteed. You may want to compare instant approval credit cards to ensure you meet the eligibility criteria before applying, as this can significantly increase your chances of approval. If the criteria are not met, there is a higher likelihood of the application being declined.
Expert opinion
Are 'no credit check credit cards' available in Australia?
Andrew Boyd, co-founder of Credit Card Compare, explains why there is no such thing as "no credit check" credit cards in Australia.
In Australia, credit card companies are obliged to adhere to the National Consumer Credit Check Protection Act 2009, which means they have to provide credit responsibly and only accept customers that can financially afford the specific loan or credit card.
That means they will check your credit report and run the numbers on whether you can afford it based on your income, spending, debts and other financial commitments.
What to consider before applying for an instant approval credit card
Whether this is you are applying for your first credit card or you've done it before, here are a few things to check before going any further.
- Eligibility criteria. Review the issuer's eligibility requirements, such as minimum income thresholds, credit score benchmarks, and other criteria.
- Interest rates and fees. Understand the card's purchase interest rate, annual fee, and any other fees and charges associated with keeping and using the card.
- Rewards and benefits. Some instant approval cards may offer frequent flyer points with Qantas or Velocity. If the card is linked with a rewards program, earns cashback, or comes with other perks, how do they align with your spending habits and lifestyle?
- Credit limit. Consider the card's credit limit and ensure it meets your purchasing needs.
- Payment flexibility. A credit card with more interest-free days can make managing your finances easier. Some cards have up to 55 days interest-free, although banks have been reducing them recently.
Who offers instant approval credit cards in Australia?
Several credit card providers in Australia offer instant approval credit cards, though final approval is often conditional upon verification of personal and financial details. You can compare instant approval credit cards from over 50 issuers in our database, including major banks like ANZ, NAB, and Westpac, as well as American Express (Amex), which also offers instant or near-instant approval on select cards.
Additionally, digital-first providers such as MONEYME may offer cards that can be used immediately upon approval via digital wallets like Apple Pay or Samsung Pay.
When comparing, remember to look at the eligibility criteria, fees, interest rates, and any rewards programs each issuer offers to find the best fit for your financial needs.
Expert opinion
How to get the best instant approval credit card that suits you
David Boyd, co-founder of Credit Card Compare, explains the process of applying for and getting an instant approval credit card.
There are no guarantees when it comes to credit card applications, and that includes instant approval credit cards. Before you apply for any credit card, check your credit score and have a look through your credit report.
Banks can also see what's in your report, you'll be asked to give your consent for them to check it as part of the application, and they'll be able to see recent missed payments and defaults.
How instant approval credit cards work
Instant approval credit cards streamline the application process by leveraging automated systems to assess an applicant's creditworthiness in real time.
When you submit an online application for an instant approval credit card, the issuer uses algorithms to quickly evaluate your credit history, income, and other relevant factors to determine your eligibility.
If you meet all of the issuer's criteria and they do not require further evidence, you may be approved within 60 seconds. However, it’s important to check any minimum income requirements before applying for the card. If you're concerned about meeting these criteria, we also have a comparison table of easy credit cards to get approval for. These cards typically have lower minimum income requirements and more relaxed eligibility criteria. They could be a good option for someone applying for their first credit card.
How long does it take to receive the physical card?
After receiving approval, you will typically need to wait 5 to 10 business days for the physical card to arrive in the mail. However, some providers offer digital versions (or virtual credit cards) that can be used immediately, allowing you to start making purchases right away.
These virtual cards can be added to a mobile wallet, such as Apple Pay or Samsung Pay, and used instantly. Issuers that may provide virtual cards include Bankwest, Bendigo Bank, Latitude Financial, MONEYME, and Westpac. MONEYME states on its website that you can start using their virtual card immediately after your application is approved.
How to improve chances of getting approved before applying
While instant approval means receiving a decision quickly, it does not guarantee acceptance. If you're looking to apply for an instant approval credit card, there are a few steps you can take to improve your chances of success.
- Check your credit history. It's a good idea to check your credit score and history before applying for a credit card. If you have bad credit, your chances of approval will be lower.
- Manage your debts better. If you have existing loans, credit cards, or other debts, paying them down or making regular, timely payments can significantly improve your credit card application. Lenders typically review your repayment history to assess how well you manage debt. Consistent payments, especially those above the minimum required, demonstrate financial responsibility and can help improve your credit score over time.
- Build your savings. A healthy savings account can be a strong indicator of financial responsibility. Regularly saving money showcases financial discipline, and lenders may view your application more favourably due to your consistent savings habit.
- Steady income. Most credit card providers require proof of regular income to assess your ability to repay the credit. If you don’t meet the minimum income requirements for the card you're applying for, you can consider applying for low income credit cards, which may offer more lenient criteria. Make sure you have recent payslips or tax returns available when applying, as they may be required to prove your income.
- Avoid making multiple applications. It’s generally advisable to avoid applying for multiple credit cards at once. Each credit inquiry can temporarily affect your credit score, and multiple inquiries within a short period may make lenders cautious. Instead, carefully compare your options and only apply for cards that you're confident you'll qualify for, based on the eligibility criteria.
