No Credit History – Monzi Investigates

Have you never held a credit contract or are you looking to apply for your first loan? There’s a good chance that you will have no credit history. What does this mean for your application? In short, it could have an impact. So, read on as Monzi explains all that you need to know.

Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

No credit history explained

Your credit history is a record of all your credit behaviours. It contains information ranging from the credit contracts that you hold to your repayment history and even your loan defaults. In short, for lenders, it’s the go-to place to get an idea of you as a borrower.

However, if you’ve never held a credit contract before then your credit history will be empty. Moreover, you won’t have a credit score. As a result, lenders may be hesitant to offer you a loan given that they have no way of establishing whether or not you are a reliable borrower.

In most cases, having no credit history will only be an issue for young people just starting to make their way in the world. However, it may apply to some older adults too.

In any case, while that covers the basics, there is much more to know. Read on as Monzi explores all you need to know about developing your credit history and accessing credit. Let’s go.

Why do I need a credit history to get a loan?

Your credit report and history reflect your creditworthiness. That is, how reliable and trustworthy are you as a borrower?

When it comes to loan assessments, lenders use this information to determine the risk associated with allowing you to borrow money.

Obviously, if you’ve got good credit and a long history or making repayments on time then you won’t be considered a risk and may be offered a personal loan. However, for a bad credit borrower with a history of defaults, lenders will often be hesitant to grant approval given the risk that any money they lend will not be paid back.

For someone with no credit history, the risk is totally unknown. You’re a wildcard as lenders have no track record to base their assessment on. As a result, in some cases, they may prefer to take the cautious approach and deny your application, given that they lack the full information required to make a decision.

This is why it may be difficult to access instant cash loans without a credit history.

Can I get a loan with no credit history?

Yes, potentially.

While we’ve outlined why lenders may be hesitant to offer you a quick loan if you don’t have a credit history, that does not mean that approval is impossible.

In short, lenders will treat all applications on a case-by-case basis. Moreover, your credit history isn’t the only consideration either. Lenders will look at your budget too in order to get an idea of your current financial situation.

As a result, approval may be possible. Although, keep in mind that not all lenders will offer these loan products meaning approval may depend on the lender you are dealing with.

What options do I have if I’ve got no credit history?

As we mentioned, if you’ve got no credit history then it may still be possible to be approved for a loan. While it may be difficult, there are a few things that you can do to increase your chances.

Firstly, and most importantly, you must be able to show that you are in a secure financial position. If a lender cannot determine your creditworthiness then, at the very least, they must be able to see that you are earning a steady income, hold secure employment and have your budget under control.

In addition to this, you could apply for a secured loan. With this, you will need to guarantee the loan with an asset (e.g. your car). Should you default on your loan, the lender may then take steps to repossess the asset in order to recover their losses. As a result, the lender’s risk is reduced and they may offer loans to individuals without a credit history.

Ultimately though, your lender will assess your loan application and determine your outcome. As a result, approval is not guaranteed.

First time loans no credit history: why might I need one?

With cash loans, you can cover almost any personal expenses that you run into. From small to large, most lenders offer a variety of credit products meaning there may be one that suits your cash needs.

As a guide, some of the most common reasons that people apply for cash loans online include:

Having said this, while personal loans may be a useful option today, keep in mind that there are costs involved. In short, you will always repay more than what you borrow given that interest rates and fees are applied.

So, before applying, weigh up your options to determine if a loan is the right choice for you.

No credit history loans Australia: how can I build my credit history?

If you’ve got no credit history then that’s okay. It’s really quite simple to take the first steps to developing a strong credit record. Best of all, there are a number of ways that you can go about it.

Firstly, you could look at getting a low-rate credit card. With this, select one with a competitive interest rate and a low credit limit. Then, use it for a range of purchases such as your groceries and fuel and pay off the balance on time each month. If you do this, then over time, it could be a useful way to build up a history of positive credit behaviours.

In addition to this, you could consider transferring various utility accounts for your house into your name. This could include your power or water bills.

Finally, make sure that you’re on good terms with your bank. Avoid overdrawing your account and always pay any fees on time. Banks will report to credit reporting bureaus so it’s important to maintain a positive relationship with them.

What should I avoid when building my credit?

If you’re trying to establish good credit then there are many things that you must avoid. In short, there are a variety of mistakes and errors that individuals make all too often that can result in a below average credit score.

So, if you’re a first-time borrower, aim to avoid the following:

  • Missed or late repayments
  • Borrowing more than you can afford to repay
  • Relying on credit needlessly
  • Opening or applying for a number of credit contracts in a short period
  • Maxing out credit cards
  • Choosing the wrong credit card (e.g. credit limit)

Be aware though these mistakes are quite common. As a result, it’s crucial to implement effective borrowing habits to avoid the potential pitfalls that come with relying on credit.

Is it worse to have no credit than bad credit?

In short, no.

While both bad credit and having no credit can potentially limit your ability to access credit, typically, no credit is a better situation to be in.

This is simply due to the fact that if you’ve got no credit then, in the long-run, it’s possible that you can still develop excellent credit. By opening credit contracts, making repayments on time and employing responsible borrowing strategies, you could achieve an excellent credit score.

However, on the other hand, recovering from bad credit is often a lengthy process as borrowers seek to overcome their past credit mistakes.

Having said this, keep in mind that some lenders may be willing to offer bad credit loans online. To do this, rather than focusing on a borrower’s credit history, they will look more at their budget to determine if they can afford the repayments. As a result, borrowers with poor credit may still be able to access loans for bad credit, as long as they are in a secure financial position.

What’s my credit score if I have no credit history?

If you have no credit history then you will not have a credit score. In other words, it won’t be 0 or 500 or 1000, it will simply not exist.

As a result, a more interesting question to ask is: what credit score do you start with?

Unfortunately, Monzi is unable to say. In short, your initial credit score will be determined by your initial credit behaviours. That is, once you have a few listings on your report and a repayment history, the credit reporting bureaus will then be able to calculate your initial credit score.

If you’re paying your bills or debt obligations on time then it may be high. However, if you’re struggling to meet the repayment demands or you’ve applied for a number of credit contracts in a short space of time then it may not be as high as you would like.

Can I get a home loan with no credit history?

Yes, potentially.

However, as we’ve already discussed, lenders are usually hesitant to offer first home loans to borrowers with no credit given that they are unable to verify your creditworthiness. That is, the likelihood that you will make your repayments.

As a result, Monzi cannot guarantee if you will be offered a variable rate home loan with no credit history.

In any case, to improve your chances of approval there may be a few things that you can do. Firstly, aim to build a strong credit history before you apply (e.g. apply for a low rate credit card). Alternatively, you could try to pay a larger deposit or have a guarantor co-sign your loan.

Again though, lender’s retain the right to approve or deny applications where they see fit.

No credit history shown on a blank notepad

No credit history loans online

These days, online lenders are dime-a-dozen. In short, they can make it easy to access credit from the comfort of your own home. Best of all, you can potentially access a range of cash amounts and lenders may be willing to take on borrowers with a number of different circumstances (e.g. poor credit or no credit).

However, if you’re not sure what to look for in a lender then the search can be daunting. That’s where a lender-finder service like Monzi can make it easy. Apply with us today and we may pair you with a licenced and trusted lender from our extensive network. Just use the loan slider at the top of the page to begin your application today.

Keep in mind however that we cannot guarantee if you will be offered a fast cash loan with no credit history. While we may be able to pair you with a lender, ultimately, they will determine your outcome.

Can I get loans the same day with no credit history?

It may be possible to access loans on the same day through some lenders. Moreover, in some cases, you could even get a one hour loan. Unfortunately though, this won’t always be possible.

Due to Australia’s lending regulations, lenders must always assess your loan application. In short, this is because they cannot offer loans that are unsuitable for a borrower’s needs and objectives. As a result, they will always take time to investigate and assess your financial situation before providing you with an outcome.

Depending on what must be assessed, processing times will vary meaning that if you are approved, it may not always be possible to get your cash on the same day. In some cases, you may need to wait until the following business day.

In any case, to give yourself the best chance of accessing loans on the same day, make sure you apply during business hours and take the time to complete your application accurately. If you do these two things then your application can potenitally go off without a hitch and you may receive an outcome ASAP.

No credit history loans on Centrelink

Some lenders may offer cash loans to Centrelink customers. However, not all of them will. Moreover, we cannot guarantee if you will be offered these loans without a credit history.

In short, when it comes to benefit payments, lenders will have differing views. While some view them as a legitimate income source, others will not. As a result, accessing credit may be difficult if these payments account for some or all of your income as you may be unable to meet the necessary thresholds.

What about if I’m unemployed?

In most cases, lenders base their decisions on risk. If they’re going to be lending you money then they want to know what is the risk that you won’t repay it?

Unfortunately, if you are unemployed and have no credit history then lenders will typically consider you a risky borrower. After all, not only may you lack the ability to afford your repayments, lenders are also unable to get an idea of your creditworthiness. As a result, it may be extremely difficult to access the credit that you need now.

Having said this, it may not be impossible. Although, in order to access loans for the unemployed you will need to prove that you are earning some form of consistent income (e.g. benefit payments). Without that, your application will be ineligible and will be rejected.

Even with income, approval is not certain. Lenders will only offer you credit if they believe it is suitable for your needs and circumstances.

What bills help build my credit?

Yes, however, it will depend on the type of bills and credit.

Your credit report will contain information about your repayment history for the past two years. However, only specific repayments will be recorded. In short, it typically only covers credit contracts such as credit cards, mortgages (fixed rate or variable) and quick personal loans.

This is because only licenced credit providers are able to share your repayment history (e.g. lenders). As a result, your repayment history on your phone and utility bills will not be recorded, given that the providers of these contracts are not licenced credit providers (e.g. telcos and power companies).

Does paying your phone bill build your credit?

While we have mentioned that your repayment history may not be shared on bills, a phone bill can still impact your credit.

Post-paid mobile phone contracts are a form of credit and in some cases, a credit check will be performed when you apply. With this, a credit inquiry may be listed on your credit report.

In addition to this, it’s important to always pay your phone bills on time. After all, if you were to default on your bills then your debt may be referred to a debt collector which can have serious ramifications for your credit score. This is the last thing that you want when you’re trying to build your credit.

Monzi and no credit history

While we’ve explored your credit options with no credit history, it’s important to note that Monzi does not offer no credit history loans. Moreover, we don’t offer online credit at all.

At Monzi, we’re a lender-finder service. That means we connect everyday Aussie borrowers just like you with some of Australia’s top lenders.

In short, all it takes is one easy application. From there, we’ll aim to pair you with an available lender from our network in just 60 minutes. Best of all, you can potentially borrow cash amounts ranging from $300 to $10,000.

So, looking for an easy and convenient way to access lenders offering fast loans online? Apply with Monzi today.

Am I eligible to apply with Monzi?

Monzi has four quick eligibility criteria that you must meet if you wish to use our lender-finder service. While meeting them does not mean that you will be approved for a loan, they are necessary for your application to progress.

So, before you begin your application, ensure you check the following boxes:

  • 18 years of age or older
  • Australian citizen or permanent resident
  • Have an active email address and contact number
  • Hold an online bank account with at least three months of history.

Note that there is no requirement that relates to having a credit history. That’s because at Monzi, we do not conduct your assessments. As a result, if you have no credit history then you are welcome to apply with Monzi. However, if you are paired with a lender and an assessment is conducted then having no credit history may have an impact on your outcome. In other words, approval is not certain.

How do I apply?

Applying with Monzi is quick and simple. Just follow these easy steps:

  1. Choose your loan amount and repayment term.
  2. Supply the required details then submit your application.
  3. Take a break. Our automated system will take over and attempt to pair you with an available lender from our network. Apply during business hours and this may take just one hour.
  4. We’ll let you know the outcome of our search. If we’re able to successfully pair you with a lender then they will be in contact to complete your assessment.

What information do I need to provide?

When you apply, lenders will need you to provide a range of documents and details that they will use to assess your application. Based on this information, lenders will determine whether or not you should be offered a loan.

If you fail to provide any of the necessary details then your application may be denied or delayed.

So, before you being, be sure that you have access to and can provide the following:

  • Personal details and contact information
  • Online banking details
  • Income details (including benefit payments)
  • An estimate of your current expenses
  • Preferred loan amount and repayment term.
  • Any other relevant details

Will I be approved with no credit history?

In short, Monzi cannot say.

While we may be able to pair you with a lender willing to assess your claim, we cannot guarantee if they will approve your application. After all, without a credit history, lenders are unable to determine the likelihood that you will make your repayments.

Having said this, if you’re in a secure financial position or are prepared to secure your loan with an asset then approval may be possible. However, it remains at the lender’s discretion.

How much can I borrow through Monzi?

Monzi works with lenders who may offer fast cash loans for bad credit and other circumstances from $300 to $10,000. However, with the wide range of cash amounts on offer, it’s important to understand that lenders will typically divide loans into three categories. Each category is slightly different so it’s important to understand which loan you will be applying for.

See below for details and features:

Small loans

Small loans typically come with the following features:

  • $300 to $2,000
  • Unsecured
  • 12 month repayment term

Medium loans

  • $2,100 to $4,600
  • Secured loans
  • Repaid over 13 to 24 months

Large loans

  • $5,000 to $10,000
  • Secured
  • 13 to 24 month repayments

Monzi: apply anywhere, anytime

Monzi is 100% online and our website is active 24/7. As a result, when you need a loan with instant approvals, we’re always ready and willing to accept your application. Moreover, you can apply from wherever you choose. It doesn’t matter whether you’re up north or down south, from the city or the bush. As long as you’re connected to the internet then Monzi’s lender-finder service could be right there in the palm of your hand.

However, note that if you apply outside of standard business hours then your outcome may be delayed and in some cases, you may need to wait until the following business day.

Contact Monzi

The world of borrowing and lending can often seem like a tricky one. As a result, it’s natural to have questions. As a result, if you do have any questions about Monzi or our lender-finder service, get in touch.

Email us at From there, one of our friendly and reliable customer service team members will get back to you with a response to hopefully address all of your queries and concerns.

Just remember that Monzi can only answer questions about our organisation and service. In other words, you should contact your lender directly for questions about the products they offer or loans that you currently hold.

Apply today

Keen to apply for a personal loan? Want to make use of Monzi’s simple and convenient lender-finder service?

Apply now! Scroll up and use the loan slider at the top of the page to begin your application today. Let’s go!

Factor In


Two credit cards
Two credit cards

You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000


12 months (minimum)

12 months (maximum)


20% upfront establishment fee

+ 4% monthly fee


Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. The minimum and maximum loan term is 12 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Loan amount

$2,001 - $4,600


13 months (minimum)

24 months (maximum)


48% Annual Percentage Rate (APR)

67.41% Comparison Rate p.a.


Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principal Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Annual Percentage Rate (APR) for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

Loan amount

$5,000 - $10,000


13 months (minimum)

24 months (maximum)


21.24% Annual Percentage Rate (APR)

48% Comparison Rate p.a.


Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principal Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Annual Percentage Rate (APR) for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. The minimum loan term is 13 months and the maximum loan term is 24 months. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.