Credit Cards for Bad Credit Australia (2026 Options)

Quick Answer: Getting a credit card with bad credit in Australia is possible, but the options are limited and expensive — high annual fees, high interest rates (up to 29.99% p.a.), and low credit limits. Secured credit cards and low-limit cards from non-bank lenders are the most accessible options. However, if your bad credit is caused by defaults, court judgements, or excessive enquiries on your file, fixing those entries first — through a professional credit repair process under the Privacy Act 1988 — will unlock far better card options at far lower cost. Australian Credit Solutions (ASIC ACL 532003) removes inaccurate or unlawfully listed negative entries with a 98% success rate.

You're searching for a credit card because you've been knocked back, or you want to start rebuilding. That makes complete sense. But before you apply for a high-fee bad-credit card and add another hard enquiry to your file, read this first — because the strategy that actually works is probably different to what you're expecting.

Why It's Hard to Get a Credit Card With Bad Credit in Australia

Australian credit card issuers pull your credit file the moment you apply. Every major bank — Commonwealth Bank, Westpac, NAB, ANZ — uses Equifax, Experian, or Illion to assess your application. What they're looking for:

• Defaults — any unpaid debt listed on your file (stays 5 years from date of listing under the Privacy Act 1988)
• Court judgements — CCJs, civil claims, AFCA determinations (5 years)
• Excessive enquiries — more than 4–5 hard enquiries in a 12-month window triggers concern
• Repayment history (RHI) — under Comprehensive Credit Reporting, every missed payment is now visible
• Serious credit infringements — stay for 7 years

If any of these exist on your file, mainstream card issuers will decline automatically. The system is largely algorithmic — no human reviews your individual circumstances.

Your Real Options for a Credit Card With Bad Credit in Australia

Option 1: Secured Credit Cards

A secured credit card requires you to deposit money upfront as security — typically equal to your credit limit. The deposit is held and the card is issued against it.

Reality check: Secured cards in Australia are less common than in other countries. Some smaller non-bank lenders offer them, but most major banks do not have public secured card products. Check current offerings directly with providers like Latitude Financial and non-bank issuers.

Option 2: Low-Limit Standard Cards

Some lenders offer standard credit cards with low credit limits ($500–$1,000) aimed at people rebuilding credit. These don't require a security deposit but carry higher interest rates.

Option 3: Buy Now Pay Later (with caution)

Afterpay, Zip Pay, Humm, and Laybuy don't typically require a full credit check for approval. However, under recent ASIC regulatory changes, some BNPL providers now conduct credit checks. BNPL products do appear on credit files through Comprehensive Credit Reporting, and missed BNPL payments can damage your score.

Option 4: Prepaid Debit Cards

Technically not a credit card — no credit check required, no credit building benefit — but useful for online purchases and budgeting. Not a path to credit score improvement.

The Real Problem With Applying for Cards With Bad Credit

Every credit card application creates a hard enquiry on your credit file. Hard enquiries stay on your file for 5 years. Multiple enquiries in a short period signal financial stress to lenders — and make future approvals harder.

If your file already has defaults or missed payments, stacking enquiries on top makes a bad situation worse.

The maths of a high-interest bad-credit card: A $1,500 credit limit at 29.99% p.a., with minimum monthly payments, costs approximately $450 per year in interest alone — before annual fees. Over two years: $900+ in interest on $1,500.

That's not rebuilding. That's paying a premium for access to your own money.

What to Do Instead: Fix the File First

Here's what most people searching for bad-credit cards don't realise: many negative entries on Australian credit files were listed in breach of the Privacy Act 1988 or the Credit Reporting Code — and can be legally removed.

The most common grounds for removal:

1. Section 21D notice not properly served — creditors must send a written warning before listing a default, allowing 30 days to respond. This is the most commonly breached requirement.
2. Incorrect default amount — the amount listed doesn't match what was actually owed
3. Listing during a genuine dispute — a default can't be listed while the underlying debt is formally disputed
4. Statute-barred debt — debts older than 6 years are unenforceable in most Australian states
5. Identity fraud — listings from accounts you didn't open
6. Expired listings — 5-year retention period has passed but the bureau hasn't removed it

Case study — Marcus, Melbourne: Marcus, 31, a tradesman from Brunswick, had two defaults on his Equifax file — a $580 Optus default and a $340 Dodo default from 2022 and 2023. He'd been applying for a secured credit card and kept getting declined. Both defaults had procedural errors: Section 21D notices sent to an old address after Marcus had updated his contact details.

Australian Credit Solutions reviewed both listings, identified the address breach for each, and lodged formal disputes. Both defaults removed in 38 days.

Marcus applied for a standard ANZ credit card the following month. Approved at 20.74% p.a. — vs the 28.99% non-conforming card he'd been offered before.

He paid nothing until we succeeded.

Get a free assessment from Australian Credit Solutions →

If You Do Apply: How to Maximise Your Chances

If your file is genuinely clean and you're just starting out with limited history, here's how to approach it:

• Apply for one card only — multiple applications in quick succession damage your score further
• Check your credit file first — get free reports from Equifax (equifax.com.au), Experian (experian.com.au), and Illion (creditreport.com.au) before applying
• Look for lenders who advertise for limited credit history — not specifically "bad credit" (which sometimes signals predatory terms)
• Consider a credit union or mutual bank — they often have more human assessment processes than the major banks
• Keep utilisation below 30% — if approved for $1,000, keep your balance below $300 to show positive repayment behaviour

Frequently Asked Questions

Can I get a credit card in Australia with a default on my file? It's difficult but not impossible. Mainstream bank card issuers will almost certainly decline. Some non-bank lenders and secured card providers may approve applications with defaults present, at higher rates. However, if the default was listed in breach of the Privacy Act 1988, it may be removable — which would significantly improve your approval chances with mainstream lenders.

What credit score do I need for a credit card in Australia? Most mainstream banks want an Equifax score above 661 (Good band). Non-bank and specialised lenders may approve from around 500+. A score below 460 (Below Average) will result in automatic declines from most card issuers.

Does applying for a credit card hurt my credit score? Yes — every credit card application creates a hard enquiry that stays on your file for 5 years. A single enquiry reduces your score by a small amount; multiple enquiries in a short period can reduce it significantly and signal financial stress to lenders.

Are guaranteed approval credit cards real in Australia? No legitimate credit card issuer in Australia offers guaranteed approval. Any advertisement claiming guaranteed approval regardless of credit history is either misleading, targeting extremely high-fee/high-interest products, or not ASIC-regulated. Be very cautious.

What is a secured credit card in Australia? A secured credit card requires you to deposit funds as security against the card's credit limit. Your deposit is held and the credit limit equals the deposit amount. It reduces the lender's risk and can help build credit history, but is less common in Australia than in the US or UK market.

Can a credit repair company help me get a credit card? Yes — indirectly. If negative entries on your credit file are blocking card approvals, a licensed credit repair company like Australian Credit Solutions can legally dispute and remove entries that were listed in breach of Australian credit reporting law. Once removed, your score improves and mainstream card options open up.

How long does a default stay on my credit file in Australia? Under the Privacy Act 1988, defaults remain on your Australian credit file for 5 years from the date of listing. Court judgements also stay for 5 years. Serious credit infringements stay for 7 years. However, entries listed in breach of credit reporting law can be removed before the retention period expires.

The Bottom Line

A bad-credit credit card in Australia is an expensive short-term fix. The better strategy — if anything on your credit file was listed incorrectly or unlawfully — is to remove those entries first, then access mainstream card products at normal rates.

Australian Credit Solutions — ASIC-licensed ACL 532003 | Lawyer-led by Elisa Rothschild BA/LLB | No Win No Fee | 98% success rate | 4.9/5 from 976+ reviews | Industry Excellence Award 2022, 2023 & 2024 | 5,000+ Australians helped since 2014.

Get My Free Assessment → 📞 0489 265 737 🛡️ ASIC Licensed ACL 532003 | ⭐ 4.9/5 from 976+ Reviews | 🏆 Award Winner 2022–2024

Australian Credit Solutions Pty Ltd holds Australian Credit Licence ACL 532003. Credit repair services are subject to individual assessment. Results may vary. This article provides general information only and does not constitute legal or financial advice.

Related reading: Credit repair Australia → | Default removal services → | How to improve your credit score →