How A Credit Card Is Issued In Australia

While credit cards are now used around the world, the way they are issued can vary from country to country.

The issuing process in Australia has recently been affected by changes made to Australian banking through the Better Banking Reforms, forcing different issuers to cut back on unsolicited mail about credit cards and encourage people to nominate their own credit limits.

In fact, the only way for people to get a credit card now is to consciously and deliberately apply for them, whether this is in a store or bank, via mail, fax or online.

The credit card application process is relatively easy and the steps below are similar to those used in countries like the U.S. and U.K.:

1. Gather personal information and supporting documentation for the application
2. Fill out the application in person or online
3. Send or submit the application to the issuer; and
4. Wait for contact from the issuer

A lot of online applications, like those for Citibank or Virgin Money cards, can take just minutes to assess. Once the submission has been made, people will be informed of whether or not it is successful almost immediately, making this form of submission the quickest and often the easiest option.

The assessment process varies between credit card issuers, but most will look at credit history, assets and debts.

Once someone has been approved for a credit card, the issuer will assess their details more thoroughly and decide on specific card features like the credit limit to make sure people will be able to manage the amount of credit they have requested.

One of the major differences between issuing in Australia and other countries is that the interest rate does not depend on the cardholder. While a U.S. issuer might advertise what is called a “representative rate”, in Australia the standard variable rates are the same for every cardholder and only change with a rate rise.

With little else to assess, the time between submitting an application and getting the card is reduced. Most cards are now received within a week on approval, but a lot of issuers still advise that it could take up to 10 business days.

Whether you are looking for a low rate option or a card with rewards, the issuing process in Australia is relatively straightforward, but it pays off to know how it all works before you apply. Then it is just a matter of comparing cards and deciding on the ideal option.