Can I Get A Credit Card With No Credit History?

We explain how to apply for a credit card with no credit history – without being rejected by the banks and ruining your credit score fresh out of the gate.

If you have never had a credit card or a personal loan or a home loan before, and you have no credit history, how can you get a credit card? If you are fresh out of school, have been living off the grid, or have no credit history for some other reason, don’t despair – we explain how to get a credit card with no credit history.

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Check your credit history first

Well first off, you may actually have some credit history, such as paying your mobile phone plan bill every month, or applying for a place to rent. You can check what is in your credit history by applying for a free report through Veda (MyCreditFile.com.au)Dun & Bradstreet (CheckYourCredit.com.au), and/or Experian Credit Services.

Read this article to find out more information on understanding your credit rating.

How to apply for a credit card with no credit history – eligibility criteria

If you are a tertiary student in university, TAFE, VET, or an apprenticeship, you are probably eligible for a student credit card without needing to have a credit history. Just be aware that not all student credit cards are equally good, so compare your options before applying for one.

For everyone else with no credit history, you may be able to apply for a secured credit card. A secured credit card is one where your credit limit is secured (guaranteed to be paid) by having a cash deposit in your bank account that is the same amount as your credit limit.

Your credit history is important but it’s not the only factor lenders consider when you apply for a credit card. So if you don’t have a credit history, some of the things lenders will look at in your application instead include:

credit cards without credit history Have you repaid your mobile phone bill on time every month?
can I get a credit card with no credit history Have you paid your electricity, water, and other bills on time every month?
how to get a credit card with no credit history Do you have a job that provides a steady income? A lending institution is not legally allowed to give you a credit card unless you have enough annual income to meet the minimum repayments for that card’s credit limit.
credit card no history Do you have a record of saving some of your income each month, or do you spend everything you earn?

Find out more about the application process in general here.

You’ll need a steady job

steady job

If you don’t already have a regular job or a reliable source of income, don’t apply for a credit card just yet. You are likely to get rejected by major banks and other credit lending institutions, which creates a black mark on your credit history. We also certainly don’t want to see you falling into the trap of payday lenders.

How much of a job is enough? For those who have are employed as casuals or contractors, you may need to demonstrate a long-standing working relationship of more than 12 months with your current employer.

What if I have multiple jobs? Having more than one employer in a short span of time doesn’t actually help you get a credit card with bad credit, because most lenders are looking for one or two stable sources of income to repay the card, rather than several smaller jobs.

No credit habit? Lenders will look at your savings habit

Lenders look at your current bank statements when you apply for a credit card with no credit history. If you’ve overdrawn your account recently, or if any direct debits have been dishonoured because there wasn’t enough in your account at the time, these things do not look good to lenders.

It’s essential to prove that you are not spending all of your income on your expenses and other debts, but that you are actually saving a small amount each week. This says to the lender that you have the finances to repay a credit card if they give it to you.

Need some help working out how to start saving some of your paycheck each month? Check out some of our Budgeting & Saving guides:

credit card no credit history Write a budget – and stick to it
credit card no credit history Make or bake homemade gifts instead of spending money on stuff nobody needs
credit card no credit history Eat out less and instead, cook cheap, healthy meals at home
credit card no credit history Save money on groceries at the supermarket
credit card no credit history Try out Buy Nothing New Month in October or No Spend November
credit card no credit history Clean your house the old-fashioned way
credit card no credit history Go camping instead of glamping
credit card no credit history Save on back-to-school costs
credit card no credit history Distinguish between “needs” and “wants”
credit card no credit history Check out the op shop

Apply for the right card – just one

We’ve explained in this article that there are different types of credit cards, and you need to choose the right one for your spending habits. If you only plan to use the card occasionally, or you don’t have a lot to spend, the type of credit card that will be outstanding value for you will be different to your neighbour who spends big on credit every month.

Some cards that are designed for low income earners, such as Low Fee credit cards (which have low or no annual fees) and Low Rate credit cards (which have low interest rates). You might even consider whether a debit card would fill your needs better than a credit card.

When you apply for a credit card, just apply for one. A credit card application is something that goes on your credit history report, and it looks bad to see a bunch of applications as the first things to go on your credit history report. Applying for a bunch of credit cards at once is a sure way to make lenders think you are irresponsible, and may mean that you ruin your credit rating and don’t get approved for any credit cards.

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What you need to know about credit cards

If you have no credit history, you’ve probably never had a credit card or personal loan before, so there are some things you absolutely must know before you sign up for one:

credit card Should you get a credit card or not?
credit card How to choose a credit card
credit card Which credit card type suits which spender?
credit card How credit card interest is charged
credit card How do interest-free days work?
credit card 5 benefits of a credit card: How to use a credit to your advantage
credit card 10 credit card fees you need to know about
credit card Using a credit card as a student
credit card 5 tips to pay off your credit card faster
credit card What does the colour of your credit card mean?
credit card Two great features of your credit card: Price Protection and Purchase Protection
credit card What to do if you lose your credit card
credit card What is a credit card surcharge?
credit card What is a credit card revert rate?

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