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Credit Cards for Bad Credit
Your credit score isn't necessarily the be-all and end-all when it comes to getting a credit card. While it's a lot easier to get a credit card with a high credit score, it's not entirely impossible to get approved with a poor credit history. Be sure to do your research first though, as your credit score drops every time you apply and get knocked back.
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Properties of this loan
- Credit card
- Interest-free period up to 55 days
Loan requirements
- At least 18 years old
- An Australian citizen or permanent resident
- Employed and earning a regular and verifiable income of at least $25,000 a year
About company
More information about the company Members Equity Bank Limited
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Properties of this loan
- Variety of credit cards
- Quick verification
Loan requirements
- 18 years or older and a permanent Australian resident
- Permanent full-time or part-time employment, or self employed
- Earn a minimum income of $25,000 per year or more
- Have a good credit rating
- Have an Australian mobile phone number
- Have your email address handy so you can receive electronic statements and other communications via email
- Have your existing flybuys membership number ready (if you have one)
About company
More information about the company Coles Supermarkets Australia Pty Ltd
Fast information
Properties of this loan
- Variety of credit cards
- Low interest rates
Loan requirements
- At least 18 years old
- An Australian citizen or permanent resident
About company
More information about the company Commonwealth Bank of Australia
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Properties of this loan
- Bank Australia Low Rate Visa Credit Card up to $40 000
- Term 1 – 60 months
Loan requirements
- 18 years or older
- A permanent resident of Australia or hold a relevant work visa
- Not currently bankrupt
- Employed, or a self-funded retiree
- Looking to borrow $1,000 or more
About company
More information about the company Bank Australia Limited
Fast information
Properties of this loan
- Credit card up to $40 000
- Term 1 - 12 months
Loan requirements
- You must be at least 18 years of age
- Be a permanent resident of Australia
- Receive a regular income
- Have not been bankrupt or insolvent in the last five years
About company
More information about the company ANZ Bank New Zealand Limited
Fast information
Properties of this loan
- Credit card up to $40 000
- Term 1 - 12 months
Loan requirements
- You must be at least 18 years of age
- Be a permanent resident of Australia
- Receive a regular income
- Have not been bankrupt or insolvent in the last five years
About company
More information about the company ANZ Bank New Zealand Limited
Can I get a credit card without a credit check?
It's not possible to get a formal credit card in Australia without being subject to a credit check. However, there are credit providers–– called payday lenders––who are happy to lend without performing a credit check.
Generally, payday loans are a thing to avoid due to their high interest rates plus fees and charges (capped at 48% per annum), but in the case of a bad credit score, a payday loan could be wise if it means avoiding further damage to your credit report. Each time you apply for a credit card, a credit check is performed. Your credit score takes a hit every time your credit card application is rejected. You can keep your credit score from dropping further by avoiding being rejected for credit card applications.
Any "hard" checks on your credit report––such as what is required with credit card applications–– impact your credit score, but "soft" checks can be performed with no detriment to your score. Search for a lender who can give you a good idea of whether you qualify for finance by initially performing a soft check. This will help you rule out any lenders who would surely reject your application so you can have the best chance at getting approval for a credit card that suits your financial situation. You can find comparison tools online that compare credit card options for people with a poor credit rating. This is a good way of determining your eligibility criteria before applying.
What credit card can I get with a bad credit score?
You can apply for a credit card with bad credit history but the options will be limited. A low limit credit card might be an option for you if your income is greater than $15,000 p.a. and you have few debts (or preferably no debt) built up. These are basic credit cards with a low minimum credit limit which means less risk to the lender and a higher chance of approval. The limit may be increased in the future once it's been proved that you can consistently meet the repayments.
A debit card or prepaid credit card might be a good option for you if you're simply needing a widely accepted method of payment. These cards don't impact your credit score at all nor do they provide a loan, but they can be used anywhere VISA or Mastercard are accepted as a payment method, it just needs to be money from your own pocket.
How can I get approved for a credit card?
Unfortunately, there is no easy solution to this; you need to clean up your credit report and show that you're capable of borrowing responsibly.
- Build savings. Consistent saving can demonstrate an ability to responsibly follow a budget and shows that you have the capacity to make repayments.
- Have a steady income. It is illegal for a credit provider to supply credit to someone who can not prove that they can meet the minimum repayments. If you are unemployed or a low-income earner, you may need to pick up more work to supplement your income to prove that you're capable of making repayments.
- Pay your bills. The number one best way to improve your credit score and increase your chances of being approved is to show that you are consistent and reliable when it comes to paying your bills and debt.
While the best option for finance is to rebuild your credit history, there are a few options available if you find yourself needing a loan with a bad credit score. (link to bad credit personal loans)
