Bad Credit Store Cards in Australia: What You Need to Know

Quick Answer: Store cards and retail finance products in Australia often have more accessible approval criteria than mainstream credit cards — but they come with some of the highest interest rates in the market, often 25–30% p.a. on unpaid balances. Buy-now-pay-later products (Afterpay, Zip, Humm) have lighter credit checks but are now credit-reported, so late payments affect your score. If you have bad credit, addressing the cause is almost always better than accumulating high-rate retail credit.

When you need to buy a fridge, laptop, or furniture and you've been knocked back for mainstream credit, store cards and retail finance can feel like the only door left open. They often are — but the terms are expensive, and they're frequently misunderstood.

Here's what you need to know before signing up.

Types of Retail and Store Credit in Australia

Traditional store cards are issued by major retailers through financial product partners. Interest-free periods of 6–48 months are common, but the revert rate — what kicks in if you don't pay the full balance within the interest-free period — is typically 25–30% p.a. Miss the payoff deadline by a day and backdated interest applies from the original purchase date.

Buy-Now-Pay-Later (BNPL) products like Afterpay, Zip, Humm, and Klarna have minimal upfront credit checks and immediate accessibility. The catch: they are now reportable under Australian credit reporting rules. Late payments appear on your credit file and damage your score. Multiple active BNPL accounts can also signal financial stress to lenders assessing a mortgage or car loan application.

Retailer-linked credit cards (e.g., Latitude GO, GEM Visa, Q Card) function as conventional credit cards with loyalty programs attached. Approval criteria are slightly more flexible than major bank cards but still involve a full credit check.

Store Card Rates: What You're Actually Paying

The interest-free period is the appeal. The revert rate is the risk. Most people who end up paying 27% on a store card didn't plan to — they planned to pay it off before the deadline and didn't.

How to Get a Credit Product With Bad Credit: The Right Steps

1. Get your credit reports — Equifax, Experian, Illion
2. Identify what's actually on your file
3. Get a free ACS assessment — telco and BNPL defaults are frequently removable
4. If removable, pursue credit repair first — opens better products at lower rates
5. If not removable, use prepaid and secured options while rebuilding

Real Case Study: Jordan, Ballarat — BNPL Defaults Were the Whole Problem

Jordan, 34, a tradesman from Ballarat, couldn't understand why his home loan application was declined. He had stable income, a solid deposit, and no major financial events he was aware of.

His Equifax score was 494. The issue: two late payment records from a BNPL provider — the result of a bank account change that hadn't carried over to the BNPL's direct debit. One of the late payment records had escalated to a default listing of $215.

The default had been listed without proper Section 21D notice being issued — a breach of the Privacy Act 1988. ACS challenged it. Removed in 18 days.

Result: Jordan's Equifax score moved from 494 to 668 in 18 days. Home loan approved at a mainstream rate. The entire barrier to his mortgage was a $215 BNPL default that should never have been listed. Avoiding a 27% store card revert rate on $10,000 saves approximately $14,300 over 3 years compared to carrying the balance. He only paid when we succeeded. Subject to individual assessment; results may vary.

Frequently Asked Questions

Can I get a store card with bad credit in Australia? Some store finance products and BNPL platforms have more accessible approval criteria than mainstream credit cards. However, they run credit checks too, and multiple applications create hard enquiries that reduce your score further. The high revert rates on most store finance products make them expensive if you carry a balance.

Do store cards affect your credit score in Australia? Yes. Store cards and retail credit products create hard enquiries when you apply. Missed payments and defaults from store finance are reported to credit bureaus and stay on your file for 5 years. BNPL late payments are also now credit-reported in Australia.

Is Afterpay reported to credit bureaus in Australia? Afterpay itself does not currently report on-time payments, but it does share default data with some bureaus. Other BNPL providers like Zip and Humm report more comprehensively. This landscape continues to evolve — assume BNPL behaviour can affect your credit file.

What happens if I can't pay a store card in Australia? If you miss payments, the account goes into arrears — reported under CCR. If the outstanding amount is $150 or more and the credit provider follows the required process, a default can be listed. That default stays for 5 years. If the default was listed without proper notice or during an active dispute, it may be removable under the Privacy Act 1988.

Are store finance products a good idea with bad credit? Rarely — the revert rates are punishing if you don't clear the balance within the interest-free period. They also add enquiries and credit accounts that can signal financial stress to future lenders. If the purchase is essential, make sure you can clear the full balance before the interest-free period ends, and set a reminder well in advance.

Addressing the Cause Is Better Than Adding More Expensive Credit

If bad credit is forcing you toward high-rate retail finance, fixing the underlying issue is almost always more valuable. A free assessment tells you in 24 hours whether any entries on your file can be legally challenged — and how quickly mainstream credit could become accessible again.

Australian Credit Solutions — ASIC-licensed (ACL 532003), lawyer-led. No Win No Fee. 98% success rate on accepted cases. Award winner 2022, 2023, 2024.

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This article provides general information only and does not constitute legal or financial advice. Australian Credit Solutions Pty Ltd holds ASIC ACL 532003. Results may vary.

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