A credit card is a powerful financial tool that allows you to pay bills or shop with rewards. However, it is often challenging to get one approved by submitting an application. Card issuers always verify your personal details before sending an approval. So, how will you qualify for a credit card from ING or another provider?
It is essential to understand the eligibility criteria before applying for the card. Comprehensive information about the application process will reduce the risk of rejection. Thus, read the blog to ensure a smoother application for a credit card.
Minimum Age to Apply for the Credit Card
The minimum age of the card applicant must be 18 years. It is the legal age when an Australian can make financial contracts.
For some premium credit cards, the minimum age to qualify is higher. Younger applicants have just started their financial journey. Thus, a low-limit or entry-level credit card is the best choice for their financial needs.
Citizenship Status
The financial institution will check your residency status before approving your request. Are you a permanent Australian resident or a visa holder applying for the card?
Temporary residents can apply for the credit card only at a few banks in Australia. But, they need to show their valid visa or proof of stable employment.
Your Earnings
Some banks have set a minimum income to apply for a card. The card providers want to ensure that your earnings will help you repair the credit used. For instance, permanent residents with annual earnings of $25,000 to $36,000 can apply for the card.
Those with higher incomes will have an opportunity to obtain a reward card. During your application, you need to submit income proof, such as:
- Tax documents
- Pay slips
- Bank statements
Irregular or low payments will result in the declination of your application.
Your Credit Score
Your existing credit score shows that you have managed your past credits. While assessing your credit profile, the bank will check your:
- Previous loans using credit cards
- Late or missed payments
- Repayment history
Thus, improve your credit score to obtain approval for a new credit card.
Your Financial Commitments
Credit card providers will check the amount of debt owed. It allows them to calculate the debt-to-income ratio of the card applicant.
For instance, you might have allotted a significant part of your income to a personal or car loan. In this case, the lender will reject the application or limit the credit.
Types of Credit Cards Available for Australians
The credit card type varies with the chosen financial institution. Banks issue various types of credit cards:
Low Rate – Focusing on a lower variable interest rate for cash advances and purchases
Rewards – Offering rewards points on your purchases
Conclusion
The credit card application process in Australia is not just about submitting an online form. The card issuer will assess your personal details, such as income and residency status. You should also check your credit health before applying for the card. Besides, apply for the right type of card to increase the chance of approval. It is now easy to send your application through online platforms.
