Most people get impatient waiting more than five minutes for their morning coffee, so it’s no surprise that some are also on the hunt for instant approval credit cards.
If you’re looking for instant approval credit cards in Australia, or maybe want information around your credit card options if you have bad credit, read more below.
What is an instant approval credit card?
When a credit card advertises that it offers “instant” approval, this means that when you apply online the credit card provider will give you a response within 60 seconds after submitting your application.
The instant approval credit card provider will review your personal financial data offered in your completed application and determine your eligibility through its own calculation system. While this may not mean you’re guaranteed approval, they will rate your eligibility in near-instant fashion.
Who offers instant approval credit cards?
There are a range of Australian credit card providers who offer the “instant” approval quick evaluation service, including those shown in the above comparison table.
How do I choose the best instant approval credit card?
Before taking out any financial product, including instant approval credit cards, it’s crucial that you use comparison tools to search and compare credit cards that best suit your individual financial needs.
RateCity.com.au’s instant approval credit card comparison table allows you to search, filter and compare competitive credit card options that suit people with bad credit. Use this tool to find the most competitive credit card interest rates for your financial needs, read through instant credit card product reviews, learn who the instant approval credit cards are suitable for, what features and fees are involved and much more.
How can I get an instant approval credit card?
If you want to get an instant approval credit card, you’ll first want to ensure you’ve given yourself the highest possible chance of being approved. Here are a few things you can do improve your chance of approval when applying for an instant approval credit card:
- Go through your credit history
If you have a bad credit score this will negatively impact your chance of approval for instant approval credit cards. The first thing you should do when applying for any financial product is to obtain a copy of your credit history and go through it with a fine-tooth comb. It’s not uncommon for credit reports to contain mistakes, such as your name being credited with the debt of a family member. You should also ensure positive information is reflected in your credit history, such as having a full-time job, owning your own home, living at the same address for several years etc. as this shows you have financial stability. Learn more about how to repair your credit score here.
- Pay your debts
If you have one or more sources of debt, this will come up in the credit card provider’s analysis of your eligibility. Falling into debt isn’t uncommon amongst Australians, so to weigh things in your favour, try to show that you’ve been consistent with meeting your repayments. Credit card providers will look at your repayment history, so meeting repayments or paying off more than the minimum monthly repayment amount can improve your credit rating, and therefore improve your chance of approval.
- Find a regular income source
If you don’t have enough annual income to meet the minimum repayments on a credit card, the provider cannot legally approve you. If it’s a possibility for your financial situation, getting a full-time job or other source of regular income will improve your approval chances.
Alternatively, you can compare credit card options for those with low annual income.
- Start saving
If you’re able to show lenders in your bank statements that you can set a budget, save a regular amount each month and grow some savings, you’ll be presenting yourself as a more reliable credit card holder. Having self-control in your personal finances can improve your chances of approval for all financial products.
Can I get an instant approval credit card with bad credit?
Having a bad credit score isn’t a life sentence. While it can feel like an impossible situation, having bad credit doesn’t necessarily mean you can’t get a credit card.
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. Read on to learn how to best avoid hurting your credit score further.
Keeping this in mind, to help improve your chance of approval and decrease your risk of negatively impacting your credit score, you should utilise comparison tools to find credit cards that suit your financial situation.
How do I get a credit cards with no credit checks and instant approval?
Unfortunately, in Australia lenders will always need to perform a credit check on you when you apply for a credit card or any financial product.
If you have bad credit and are rejected for your credit card application, this can negatively impact your credit score. Alternatively, you could first look to lenders that perform ‘soft’ credit cheques (pre-qualifications showing your chance of approval). These will not show up on your credit history and you’ll feel more confident about applying for an instant approval credit card.
If you’re desperate to find a credit card provider with no credit checks, you could look into payday lenders and/or payday loans. However, payday lenders come with higher risk than traditional credit card providers, and it pays to do your research first.
Do you need financial counselling?
If you’ve got bad credit or are feeling overwhelmed with growing debt, you could benefit from seeking financial counselling before applying for any further loans or credit cards.
A professional financial counsellor can help you work through a debt consolidation plan and help facilitate smarter choices to clear your bad debt. If you know you’ve got bad debt and you’re struggling to make repayments, contact your lender. A proactive approach may help put a plan in place before it’s too late.
To find your nearest financial counsellor, or for more information, please visit ASIC’s MoneySmart website.