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3.2. Credit history and credit card application approval

If you get approved for your credit card, it’s could indicate that your credit history met the provider’s requirements. But it’s important to realise that this may not mean you have “good” or “bad” credit history – just that all the factors considered have been weighed in your favour.

The new account will also become part of your credit history, which will continue to influence your applications for cards and other forms of credit.

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3.2. Credit history and credit card application approval

Case Study: Jason’s application approval
Jason decides to apply for a platinum rewards credit card. When he submits his application, the provider views his credit history and sees:

  • He has only one other credit card, with a limit of $5000.
  • He has successfully paid off a $20,000 car loan over the past five years.
  • He shares a $200,000 mortgage with his partner.

The provider considers these details, along with the details of income, expenses, assets and liabilities listed on his application, and determines that he is very capable of managing the platinum card. Jason’s application is then approved.