For Australians with a poor credit history or no credit history at all, getting approved for a credit card can be challenging. Lenders typically assess an applicant’s credit report before making a decision, and if there’s a history of missed payments, defaults, or bankruptcy, approval may be difficult. This can be frustrating for those looking to rebuild their credit or access funds in an emergency.
In Australia, there are limited options when it comes to credit products that don’t require a credit check. Unlike in some other countries where no credit check credit cards and personal loans are available, the Australian market primarily offers payday loans as an alternative. While these loans can provide quick access to cash, they often come with high fees and interest rates, making them a costly form of credit.
Key takeaways
- There are no credit check credit cards in Australia. Unlike other countries, Australia does not offer no credit check credit cards, with payday loans being the main alternative for those with poor or no credit history.
- High costs of payday loans. While accessible, payday loans come with high fees and interest rates, making them an expensive option that could worsen financial difficulties.
- Alternative credit card options. Some low-rate credit cards with low minimum income requirements may be accessible, helping individuals build credit without resorting to costly short-term loans.
- Building credit responsibly. Improving credit history through consistent payments, secured loans, or store cards can increase future financial opportunities without the risks of high-interest borrowing.
- Seeking financial assistance. Government services like MoneySmart and financial counsellors can offer guidance on managing debt and finding alternatives to high-cost credit.
If your credit score is poor, as determined by checking your credit report, it's essential to carefully consider your options before submitting a credit card application. A rejected application will be recorded on your credit report, potentially making it more challenging to secure approval for credit products in the future.
Cards designed for lower income.
Credit card alternatives worth considering
While no credit check credit cards are not available in Australia, some credit cards have lower income requirements and may be an option for those looking to establish or rebuild credit.
Highlights
- No annual fee for the life of the card.
- 0% p.a. for 6 months on purchases and transferred balances (with a 3% balance transfer fee). Returns to 18.99% p.a. thereafter.
- Add up to 3 additional cardholders at no extra cost.
Highlights
- 0% p.a. for 30 months on balance transfers with a 3% balance transfer fee (then reverts to 21.99% p.a.) Terms and Conditions apply.
- The first-year annual fee is waived, saving you $58 upfront
- Offers the option to repay eligible purchases in 3, 6, or 12-month instalments.
Highlights
- Get a 0% interest rate on balance transfers for 24 months with a 1% transfer fee. After that, the rate changes to 21.99% p.a. for cash advances.
- Start with a credit limit as low as $500, helping you keep your spending in check.
- Add 1 additional cardholder at no extra cost.
Highlights
- $0 annual fee for the first year.
- A $30 annual fee applies after the first year, but it’s waived if you spend $5k each year.
- Split purchases into 4 payments over 6 weeks for easier repayment.
Highlights
- The low ongoing purchase rate of 12.99% p.a. helps you save on interest costs.
- 0% p.a. for 12 months on balance transfers with a 2% fee.
- With no foreign transaction fees, this card is a great choice for online and international purchases.
- Includes complimentary domestic travel insurance.
Highlights
- Receive $125 cashback when you spend $750 on eligible purchases within 3 months after approval. Terms and Conditions apply. Terms and Conditions apply.
- The first-year annual fee is waived, saving you $30 upfront.
- Includes complimentary Purchase Protection and Extended Warranty Insurance.
Short term loans with higher fees.
Payday loans
Payday loans are short-term, small-amount loans designed to be repaid on your next payday. Since approval is based on income rather than credit history, these loans are accessible to borrowers with bad or no credit. However, they come with significant costs.
For example, a payday loan for $1,500 might include an establishment fee of up to 20% ($300) and monthly fees of up to 4% ($240), meaning the total repayment amount is significantly higher than the amount borrowed. While these loans may seem like a quick solution, the high fees can exacerbate financial difficulties if not managed carefully.
Understand the risks of a payday loan before applying
Before taking out a payday loan, consider alternative options:
- Speak to a financial counsellor. The National Debt Helpline (1800 007 007) provides free financial advice.
- Contact service providers. Utility companies, phone providers, and landlords may offer payment plans.
- Check Centrelink options. Government benefits recipients may qualify for an advance payment (13 17 94).
- Visit the Government’s MoneySmart website. It provides guidance on small-amount loans and alternative solutions.
Fixed rates and repayment schedule.
Personal loans
For those with stable income, a personal loan may be another option. Unlike credit cards, personal loans have a fixed term and repayment schedule, which can make budgeting easier. Some lenders focus on income rather than credit history when assessing applications.
MONEYME Flexible Personal Loan (Good Credit History Only)
Interest rate
From 11.99% (personalised)
Comparison rate
From 15.82% (personalised)
Repayment period
3 years
Application fee
From $395.00
Monthly repayment
$677.31
Total repayment
$24,383.16
Highlights
- Check your rate and repayments without impacting your credit score.
- Money can be in your bank account in as little as 60 minutes (if approved).
- Fast approvals, flexible repayments, and no early exit fees.
- Thousands of 5-star reviews.
MONEYME Debt Consolidation Loan
Interest rate
From 6.74% (personalised)
Comparison rate
From 8.13% (personalised)
Repayment period
3 years
Application fee
From $395.00
Monthly repayment
$627.32
Total repayment
$22,583.52
Highlights
- One easy-to-manage low monthly repayment
- Low rates tailored to your credit profile (Good to Excellent)
- Easily managed via the MoneyMe app with no early exit fees or hidden charges
- Backed by thousands of 5-star reviews
Tips to build a healthy credit profile.
How to improve your credit score
If you’ve been declined for a credit card, focusing on improving your credit history may be the best long-term strategy.
Lenders look at both income and past repayment behaviour when making decisions, so taking steps to demonstrate responsible financial management can increase your chances of future approval. Ways to improve your credit profile include:
- Paying bills on time. Utility bills, phone bills, and rent payments contribute to a positive credit history.
- Secured loans. A secured loan backed by an asset (e.g., a car or savings) may be easier to obtain and help build credit.
- Using store cards or appliance rental agreements. These can demonstrate repayment reliability but should be managed carefully to avoid high costs.
- Consolidating debt. If you have multiple debts, consolidating them into a single loan with a structured repayment plan may improve your financial standing.
