No credit check credit cards

No credit check credit cards

When you have a less than average credit score, searching for a credit card can feel like dodging an ‘approval’ mine field. However, you can still apply for a credit card online or in a branch with bad credit, and there are still credit card providers who will approve you – you just have to do your research first.

Can I get a no credit check credit card?

It is extremely rare to get any financial product in Australia without a credit check. This idea is typically limited to ‘payday loans’, which are sometimes used as short-term solutions for cash-strapped Australians. They carry a range of risks, including putting individuals into a worsened cycle of debt due to higher than average fees.

However, this does not mean that you won’t be approved for a credit card if you have bad credit. Some lenders will provide credit cards to Australians with bad credit scores, but it all depends on the lender’s individual eligibility criteria.  

Warning – don’t apply just yet!

Every time you apply for a credit card (or any financial product) the lender will perform a ‘hard’ inquiry on your credit report. If you are rejected, this will negatively impact your credit score and show up on your credit history for up to 12 months.

Ensure you’ve researched the credit card rates, fees and features, the lender’s eligibility criteria (minimum income requirements etc.) and that you’ve presented yourself as a reliable borrower before applying. 

Why do banks perform credit checks?

Financial providers perform credit checks to determine your credit-worthiness. This is to protect themselves as well as you. They want to provide financial products to individuals who are likely to pay their bills and not overdraw their accounts. Lenders also don’t want you to fall into debt and negatively impact your credit score, as well as your livelihood.

This is where credit scores come into play. According to ASIC’s MoneySmart website, the position of your credit score on this scale “helps lenders work out how risky it is for them to lend to you:

  • Excellent – you are highly unlikely to have any adverse events harming your credit score in the next 12 months;
  • Very good – you are unlikely to have an adverse event in the next 12 months;
  • Good – you are less likely to experience an adverse event on your credit report in the next year;
  • Average – you are likely to experience an adverse event in the next year; and
  • Below average – you are more likely to have an adverse event being listed on your credit report in the next year.”

Where do I get bad-credit credit cards with no credit check?

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You won’t be able to get a credit card with no credit check, but you can search and compare bad-credit credit cards by utilising comparison tools.

RateCity’s bad-credit credit card comparison table helps you to find competitive credit card options for your financial needs. Comparison tables let you add search filters for your personal finances, examine credit card interest rates, fees and features, and also read reviews of the presented credit cards.


How can I improve my credit score?

Your credit score will improve if you demonstrate that you’ve become more credit-worthy. You can do that by minimising credit applications, clearing up defaults and paying bills on time.

If you have a bad credit score, you can try doing the following things before applying for a credit card:

  1. Pay off your debts – credit card providers examine your personal finances to determine your credit-worthiness, so if you have any outstanding debts this may reflect negatively against you. However, this is a reality for many Australians. If you’re consistent with making regular repayments – more than the minimum requirements if possible – then providers will see you have stability in your finances. This can also increase your chances of improving your credit score.
  2. Get your free credit report – every Australian is entitled to one free credit report per year. It’s crucial that you go through your credit report and look for any errors as it’s not uncommon for them to contain mistakes, such as having the debt of a family member with a similar name credited to you. Learn more about credit scores here.
  3. Check the minimum income requirements – credit card providers look at your annual income amount, as well as your occupation, so you won’t necessarily be rejected if you have part-time or casual work. Minimum income requirements tend to be between $30,000 – $40,000 for standard and rewards credit cards, however low income credit cards can have minimum income requirements as low as $15,000 per year.

Who offers credit cards for bad credit with guaranteed approval?

Guaranteed approval is impossible to come by in Australia, and there is no universal definition of bad credit. Each lender will have their own criteria around bad credit classifications, and how this determines your eligibility and chance of approval.

This is the same for instant approval, credit cards. They may be possible to get – but please note that the term may be misleading. “Instant” approval tends to mean that when you apply online the lender will let you know the likeliness of your eligibility for a credit card within 60 seconds of receiving your application. 

Do you need financial counselling?

If you’ve got bad credit and you find yourself in a dire financial situation, it may be wise to seek financial counselling before applying for any further loans or credit cards. To find your nearest financial counsellor, or for more information, please visit ASIC’s MoneySmart website.

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Learn more about credit cards

How easy is it to get a credit card?

For most Australians, there are no great barriers to applying for and getting approved for a credit card. Here are some points that a lender will consider when assessing your credit card application.

Credit score: A bad credit score is not the be all and end all of your application, but it may stop you being approved for a higher credit limit. If your credit score is less than perfect, apply for the credit limit that you need, rather than the one you want.

Annual income: Most credit cards have minimum annual income requirements. Make sure you’re applying for a card where you meet the minimum.

Age & residency: You need to be at least 18 years old to apply for a credit card in Australia, and most require that you are an Australian citizen or permanent resident. However, there are some credit cards available to temporary residents.

Do you need a credit card to get a loan?

You do not need a credit card to get a loan, but you usually need to have a credit history. Without a credit history, a financial institution cannot assess your ‘credit worthiness’, or your capacity to pay off the loan.

If you don’t have a credit card, your credit history can reflect any record of paying off an asset. Without any credit credit history, you’re limited in the type of loans you can apply for. But you may be able to obtain a secured loan against an asset. For more information on improving your credit score, go here

What should you do if your credit card is compromised?

Credit card fraud is a serious problem. If your credit card is compromised and you’re wondering what to do, here are a few precautionary steps to take.

Contact you credit provider – Get in touch will your credit card provider. If you feel your card has been compromised, you should be able to lock or block it.

Monitor your accounts – Keep an eye on your credit card accounts. Any unauthorised transactions could be a sign your credit card has been compromised.

Check your credit rating – It’s also important to check your credit rating, to ensure you’re not a victim of identity theft or some other financial mischief.

Can a pensioner get a credit card?

It is possible to get a credit card as a pensioner. There are some factors to keep in mind, including:

  • Annual income. Look for credit cards with minimum annual income requirements you can meet. 
  • Annual fees. If high fees are a concern for you, opt for a card with a low or $0 annual fee. 
  • Interest rate. Make sure you won’t have any nasty surprises on your credit card bill. Compare cards with a low interest rates to minimise risk.

What happens if I have a bad credit score?

If you have a bad credit score, you might encounter two main problems. First, the lower your credit score, the more likely you are to be rejected when you apply for a loan or any other credit product. Second, if your application is accepted, the less likely you are to qualify for the lowest interest rates.

How do you use credit cards?

A credit card can be an easy way to make purchases online, in person or over the phone. When used properly, a credit card can even help you manage your cash flow. But before applying for a credit card, it’s good to know how they work. A credit card is essentially a personal line of credit which lets you buy things and pay for them later. As a card holder, you’ll be given a credit limit and (potentially) charged interest on the money the bank lends you. At the end of each billing period, the bank will send you a statement which shows your outstanding balance and the minimum amount you need to pay back. If you don’t pay back the full balance amount, the bank will begin charging you interest.

Can I get a credit card with bad credit?

Yes, some lenders will provide credit cards to Australians with bad credit scores. It depends on the provider's individual lending criteria and whether you’ve presented your personal finances to show you’re an ‘ideal’ applicant.

How do you apply for a credit card?

You can apply for a credit card online, over the phone or in person at the bank. Once you’ve compared the current credit card offers, the application process is quick and easy. Before you get your application started, you’ll need to gather your personal information like proof of ID, payslips and bank statements, proof of employment and details of your income, assets and liabilities. To be eligible for a credit card, you’ll need to be an Australian citizen over 18 and earn a minimum of $15,000 each year. Once you’ve applied for a credit card, you should get a response fairly instantly. If your credit card application has been approved, you should receive a welcome pack with your new credit card within 10-15 days.

Why do different credit reporting bureaus use different scores?

The reason Equifax, Experian and Illion use different scores is because they are independent companies with their own different methodologies. As a result, a score of, say, 700 would mean different things at different credit reporting bureaus.

However, the one thing they have in common is that they divide their scores into five tiers. So if you receive a tier-two credit score from one bureau, you will probably receive a tier-two score from the others, as well.

Can I get a credit card on part-time/casual work?

Yes, as credit card providers look at your annual income amount as well as your occupation. Minimum income requirements tend to be between $30,000 – $40,000 for standard and rewards credit cards, however low income credit cards can have minimum income requirements as low as $15,000 per year.

How to get a credit card for the first time

A credit card can be a useful financial tool, provided you understand the risks and can meet repayment obligations.

If you’re a credit card first-timer, review your options. Think about what kind of credit card would suit your lifestyle, and compare providers by fees, perks and repayments.

Once you’ve selected a card, it’s time to apply. Credit card applications can generally be completed in store, online or over the phone.

When you apply for a credit card for the first time, you must meet age, residency and income requirements. As proof, you must also provide documentation such as bank account statements.

What's the best credit card for rewards?

There is no one-size-fits-all best rewards credit card. It's best you research what type of rewards program you'd like, as well as the fees, interest rate and conditions associated with those types of cards before making a choice. 

Rewards credit cards can also come with high annual fees that may end up nullifying the rewards, so think how often you use the card to decide whether the benefits outweigh the extra cost for you. A card with a lower annual fee might require a lot of spending to get any useful rewards, while another card with a higher annual fee might need fewer purchases to get a reward. 

How many numbers are on a credit card?

The numbers on your credit card actually follow a universal standard which is used to identify specific functions. Each credit card has a different amount of numbers. Visa and Mastercard have 16, American Express has 15 and Diner’s Club has 14. 

The first number on a credit card always identifies what type of credit card it is. Visa cards start with a 4, whereas Mastercard starts with a 5 and American Express with a 3. The remainder of the digits represent the account number, including the last number which is used to verify that your credit card is actually valid. 

Credit cards also have additional verification numbers, which are mainly used when the card isn’t present for phone and online purchases. These are the three-digit numbers on the back of Visa and MasterCard or the four-digit numbers on the front of an American Express card.

Where can I get a credit card?

Looking to get your first credit card? You might be confused as to exactly where to go to apply for one. Here’s where to go when you are ready to put in that application.

The bank: Your bank is a great place to start, provided that you have a good banking history. Since you already have a financial history, you have more chance of your application being approved.

Credit card provider: Another option is to apply for a credit card directly from the issuer, such as Visa, Mastercard or Amex. This will most likely be an online application, so do your research and apply for a suitable card for your circumstances.

Major retailers: Coles, Woolworths, Myer and David Jones all have credit cards available. But watch out for the interest rate and annual fees – these cards are designed to help you spend more in store.