What credit score do you need to get a credit card?

Understanding credit score requirements and your options in Australia

Key takeaways

• Most credit card providers prefer applicants with a credit score rated as fair or higher, which generally means a score of around 550 or above. However, requirements vary by lender and card type.
• Your credit score is only one part of the decision. Lenders also assess factors like your income, employment stability, existing debts, and overall financial situation.
• There’s no single minimum score that guarantees approval. Some cards are designed for people with lower scores or limited credit history, while premium cards usually require a higher score.
• Healthy credit habits matter. Paying bills on time, keeping balances manageable, and limiting frequent credit applications can help improve your score over time.
• ClearScore lets you check your credit score for free and compare credit cards you’re more likely to be eligible for, helping you apply with greater confidence.

Is there a minimum credit score needed for a credit card?

There’s no magic credit score you need to hit for your credit card application to be approved. Although, the higher your score, the better the chances your application will be successful. But bear in mind, your credit score is just one piece of the puzzle - lenders also look at your income, employment, and repayment history when deciding whether to approve your application.

Important disclaimer: Before applying for credit, you should always make sure you can afford the repayments.

What is a credit score and why does it matter for credit cards?

Your credit score is a number that shows lenders how you've managed credit in the past. In your ClearScore account, you’ll see a credit score ranging from 0 to 1,200, with higher scores indicating better repayment history. Think of it as your financial report card that helps lenders assess whether to provide you with credit.

When you apply for a credit card, lenders use your credit score to evaluate lending risk. Credit scores are based on personal and financial information from your credit report, which you can access for free through various credit reporting agencies. A higher score suggests you're more likely to repay what you borrow, which may make lenders more willing to approve your application and offer better terms.

Your credit score affects not just whether you get approved, but also what type of card you may be offered. People with excellent scores might qualify for premium cards with rewards and lower interest rates, while those with lower scores might be offered basic cards with higher fees.

What credit score do you need to get a credit card in Australia?

The credit score you need depends on the type of card you want and which lender you choose. Most Australian lenders look for a minimum score somewhere in the "good" range, but requirements can vary significantly.

Credit score ranges for credit card approval

Understanding where your score sits can help you know what to expect when applying:

Note: These are illustrative estimates only and that final approval is subject to a full assessment by the lender, which includes factors beyond the credit score, such as income and employment status. Different credit bureaus have different bands, for example; Equifax deem, a ‘good’ score is 661-734, an ‘excellent’ score is 853-1200, and an ‘excellent’ score is 841-1,200 (source).

Did you know: With ClearScore, you can review your credit report and compare tailored credit card offers based on your profile.

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Having a low credit score doesn't mean you're completely locked out of getting a credit card. Options are available, though they might come with limitations or higher costs.

Can you get a credit card with no credit check?

The short answer is no - all legitimate credit card applications in Australia require some form of credit check. Lenders are required to assess your ability to repay credit before approving any application. However, some lenders may place less emphasis on your credit score if you can demonstrate strong income or employment stability.

If you see offers for "no credit check" credit cards, be very cautious. These are often either scams or products that aren't actually credit cards (like debit cards or prepaid cards that don't help build credit).

Credit cards for bad credit: What's available?

If your credit score is on the lower side, you still have options:

Basic Credit Cards: Some lenders offer simplified cards with lower credit limits and basic features. These often have higher interest rates but can help you rebuild your credit over time.

Store Credit Cards: Some retailers offer credit cards that may be easier to qualify for, though they typically can only be used at that specific store or chain.

The key with any of these options is to use them responsibly - pay on time, keep balances low, and gradually build up your credit history.

Related reading: How to get credit cards with bad credit

If your credit score needs work, there are practical steps you can take to improve it over time. While there's no quick fix, consistent good habits can make a real difference.

Steps to build a better credit score

Pay all bills on time: This is one of the most important things you can do. Set up automatic payments or reminders to help ensure you never miss a due date, including credit cards, loans, phone bills, and utilities.

Keep credit card balances low: Try to use less than 30% of your available credit limit. If you have a $1,000 limit, aim to keep your balance below $300. Paying off your full balance each month is even better.

Don't apply for multiple credit products at once: Space out credit applications by at least six months. Only apply for credit when you really need it.

Check your credit report regularly: Look for errors or outdated information that might be affecting your score. You can dispute incorrect information with the credit reporting agencies.

Keep old accounts open: The length of your credit history matters, so consider keeping old credit cards open unless they have high annual fees you can't justify.

Consider a mix of credit types: Having different types of credit (like a credit card and a personal loan) can help your score, but only if you can manage them responsibly.

Remember, improving your credit score takes time. You might start seeing small improvements within a few months, but significant changes often take six months to a year of consistent good habits.

How do I choose a credit card for the first time?

When choosing a credit card, you should first consider your main spending habits and your current income to realistically gauge how you are going to pay off your credit card bills every month. There are different types of credit cards that you can consider depending on your requirements.

You should consider factors like the total number of interest free days available, the monthly or annual fee, the main interest rate, and any other kind of fees associated with the credit card like cash advance and late payment fees.

Here are the main types of credit cards that you can consider:

Low rate: These are low interest rate or even zero rate credit cards that you can opt for if you think you may not be able to pay off all the repayment in full. These cards can help keep the interest accrued on the pending payments to a minimum.

Low fee: These cards have low monthly or yearly fees and other fees associated with them. They can be a great option if you aren’t going to use your credit card that regularly and you don’t want to pay extra fees just for owning a credit card.

Rewards: These cards offer reward points and benefits for every time that you use your credit card. You can then use your points at shopping centers, online stores, and even for booking flight tickets. But it's important to note that these cards usually have high annual fees and interest rates as compared to credit cards without rewards.

Understanding your current credit position is the first step toward better financial choices. With ClearScore, you can track your credit score for free, for life. Get personalised insights and see credit cards you're more likely to be accepted for - without affecting your score.

Ready to take control? Check your free credit score with ClearScore and compare credit card options tailored to your profile.

Can you get a credit card with no credit history?

Yes, but your options might be limited. If you've never had credit before, lenders can't assess your repayment history, which may make them more cautious. You might be offered a lower credit limit or a basic card to start with.

Some tips for getting your first credit card:

• Apply for a basic card from your current bank
• Consider a secured credit card
• Have proof of steady income
• Start with a lower credit limit request

How often should you check your credit score?

You can check your credit score as often as you like without it affecting your score. Many people check monthly or quarterly to keep track of changes and spot any errors early.

Regular checking is especially important if you're working to improve your score or planning to apply for credit. ClearScore gives you free access to your credit score and report, helping you track progress and spot opportunities to grow your financial wellbeing.

What happens if my credit card application is rejected?

If your application is declined, the lender must tell you why. Common reasons include insufficient income, too many credit applications, or a low credit score. Avoid immediately applying elsewhere - this can potentially hurt your score further.

Instead, consider waiting at least six months before applying again and use that time to address the reasons for rejection. You might also consider applying for a different type of card or with a different lender.

Does checking my credit score hurt my rating?

No, checking your own credit score is a "soft inquiry" that doesn't affect your score at all. Only when lenders check your score as part of a credit application (a "hard inquiry") does it potentially impact your rating.

How long do negative marks stay on my credit report?

Most negative information stays on your credit report for five years in Australia, including late payments, defaults, and bankruptcies. However, the impact on your score may lessen over time, especially if you build up positive payment history.

Can I improve my credit score quickly?

There's no instant way to dramatically improve your credit score, but you can start seeing small improvements within 1-3 months of consistent good habits. Paying down existing debt and ensuring all future payments are on time are among the fastest ways to see positive changes.

Ready to see where your credit score stands and what cards you might be eligible for? You can check your credit score for free with ClearScore and get personalised insights to help guide your next steps.

Disclaimer: This article provides general information only and does not constitute financial advice. Individual circumstances vary, and you should seek independent, professional advice before making financial decisions. ClearScore is a credit broker, not a lender. Information is accurate at the time of writing and may change.