Once you submit your credit card application, the credit card issuer will evaluate your eligibility for the card by reviewing your financial information, including your credit history or credit file. 

In Australia, lenders or other credit suppliers like credit card issuers must offer credit responsibly. They can’t offer you a loan or any other credit you can’t afford to repay and, therefore, will assess your current income, expenses and financial history to determine your ability to repay. This is the information they’ll use to determine if they’ll approve your credit card application. 

They’ll also check your credit score and report to determine your creditworthiness. In general, the higher your credit score, the greater your chances of getting approved for a credit card or any other type of credit or loan, such as a home loan or a personal loan.

Once the credit card issuer has approved you for a credit card, they’ll then decide on the credit limit they’re willing to offer you. The credit limit is the maximum amount of credit on the card or the maximum amount of money you can spend using the card and is based on your financial circumstances.

Before applying for a credit card, you need to understand that the approval process and timeline differs depending on the card issuer. The information you provide will also impact the timeline. Ensure you provide accurate information and offer any additional information that’s requested. 

In general, the processing time for a credit card application may range from one to five working days. However, you may also be able to apply for an ‘instant card approval’ offered by some credit card issuers. An instant card approval means you can get a response within a few minutes of submitting your credit card application. 

It's essential to remember that even if you receive instant approval, you may have to wait to receive your new card. In such cases, your application is only ‘conditionally approved’. The card issuer will typically only give you guaranteed approval after verifying your financial information. They might also ask you to provide more information or documentation, even after conditionally approving your application.

The amount of time it takes to receive your physical credit card after approval can vary. However, most card issuers will have your card dispatched to your mailing address within a week or two of approval. 

As an example, the Suncorp Bank credit card will be shipped to your mailing address within 5-7 business days of your application’s approval. Similarly, Beyond Bank credit cards are generally dispatched within 5-10 business days of an application getting approved. 

If you’ve applied in person at a local branch, you may have the option of collecting the card directly from the branch within a couple of days of getting approved. Check with your credit card issuer for more information regarding how long it might take for you to receive your new card. 

In general, you may need to wait up to 10 business days to receive a credit card once approved. Your card issuer will advise you of how long it should take for the card to reach you, and if you don’t receive your card within this period, you may want to get in contact for an update.

It can be disappointing to have a credit card application declined. Still, it’s important not to rush into applying for another card without understanding why your application was declined first. If you apply for too many credit products within too short a period, it can impact your credit file negatively, which will further reduce your chances of being approved. Finding out why you were declined will also help you identify areas for improvement to increase your chances of approval the next time you apply.

Carefully reviewing the terms and conditions before applying for a credit card could help increase your chances of approval. It also helps to check the eligibility criteria for a particular card before applying to ensure you meet all the requirements. For example, some rewards-based credit cards may require a minimum credit card limit or income level to qualify.  You may also want to check your credit score before applying for a credit card to get an idea of how lenders will view your application. Finally, you should also double-check your credit file to ensure there aren’t any errors that may be preventing you from getting approval.