What can improve my chances of getting approved for a credit card?
Two primary factors that significantly influence your credit card approval odds are a solid credit history and a stable income. These two elements enhance your likelihood of securing a credit card because it is an unsecured form of credit, and financial institutions seek assurance that you can make the minimum monthly payments.
In Australia, credit card issuers must adhere to lending guidelines enforced by the Australian Securities and Investments Commission (ASIC). As per ASIC regulations, credit card companies and lenders are required to:
- Evaluate your application based on your ability to repay the credit limit within 3 years and
- Conduct inquiries about your financial circumstances before approving your credit application.
This is why card issuers assess your credit report when reviewing your application. Consequently, it is not possible to obtain a credit card without undergoing a credit check, and no card issuer can guarantee approval prior to you submitting an application.
David Boyd, co-founder of Credit Card Compare, explains, "While no foolproof method guarantees credit card approval, satisfying a card's eligibility requirements enhances your chances of success. Generally, cards with more basic features tend to have fewer eligibility criteria compared to premium cards loaded with perks."
Types of easy credit cards to get approved for
Consider the following types of credit cards that may have more relaxed eligibility requirements:
- Low income credit cards: These cards are for individuals with a solid credit history and an annual income ranging from $15,000 to $35,000. When applying, you must submit proof of income, such as recent pay stubs and employer details.
- Low credit limit cards: If your income is on the lower side, consider cards with minimum credit limits starting around $500. A lower credit limit can help minimize the risk of debt and make it easier to fulfil the eligibility criteria.
- Low annual fee credit cards: Annual fees for credit cards vary, but those with low or no annual fees typically offer fewer additional features and may have lower income requirements.
- Low rate credit cards: These cards provide a low interest rate for purchases and usually come with fewer extras (like rewards or complimentary insurance) compared to premium cards. They are also likelier to have lower minimum income requirements, potentially making qualifying easier.
- No interest, flat fee cards: Instead of charging interest, these cards have a monthly fee and offer credit limits ranging from $1,000 to $3,000. Designed to compete with buy now, pay later services, their structured repayments and low credit limits can make them easier to apply for and get approved.
- Joint account cards: With a joint account credit card, you apply and share responsibility with another person. Your combined income and financial situation are evaluated during the application process, which could improve your chances of approval. However, only a limited number of banks offer joint account cards, and the application process may take longer.
