Financial Help When You’re New to the Country and Have No Credit History

Landing in a new country with nothing but a suitcase, some savings, and a stack of dreams is equal parts exciting and overwhelming. But once the novelty wears off—the flat whites, the beaches, the first trip to Kmart—you start to notice just how hard it is to do the basics without a local credit history.

It feels like you’re being penalised for being new. And, in a way, you are. Renting a place. Getting a phone plan. Applying for a loan. Even something as simple as signing up for Afterpay can end in a polite rejection. Here’s how to build financial credibility from the ground up—and what kind of support actually exists when you’re starting fresh.

Let’s Be Real: No Credit History Isn’t the Same as Bad Credit

When you arrive, you’re essentially invisible to lenders. No red flags, but also no green lights. You could’ve had a flawless credit score in Manila or Mumbai—but in this system, that doesn’t travel. The big banks, telcos, and landlords often view a blank file as a risk.

That’s why you might get knocked back for:

Postpaid mobile plans
Car financing
Rental applications
Credit cards
“Buy now, pay later” services

It’s frustrating, especially if you’re employed and have no debt. But the key is to understand how the system works—and work around it while you build a local track record.

Start Small: Open a Basic Transaction Account First

Before you think about credit, make sure you’ve got a reliable everyday bank account. Look for one with no monthly fees and no minimum deposit requirements—ING, Up Bank, and Bank Australia are good starting points.

Set up:

A transaction account (for everyday spending)
A savings account (linked to your transaction account)

Some banks offer “welcome” incentives or higher introductory interest on savings if you deposit a certain amount each month—use that to your advantage if you’ve brought savings with you.

Build Credit the Old-School Way: Phone Plans, Utilities, and Rent

If you can’t qualify for a credit card straight away, look for other bills that contribute to your credit file:

Postpaid mobile plan: Try a basic $30–$40 plan with Optus or Vodafone. They’re sometimes more flexible with new arrivals than Telstra.
Utility bills in your name: Electricity, gas, and internet don’t typically build your credit file unless you miss payments, but they still prove consistency and financial responsibility over time.
Rental payments: Services like Rental Rewards or Canopy report rent payments to credit agencies. Over time, that record can help boost your creditworthiness.

And if you’re still flat-sharing or living with family, that’s okay. Even paying your portion via bank transfer with clear references can show a pattern of reliability.

Consider a Secured Credit Card—or Skip Credit Cards Altogether

If you’re eager to start building credit quickly, a secured credit card might be worth considering. You pay a deposit up front—say $500—and the bank uses that as your credit limit. It’s low-risk for them, and a stepping stone for you.

But don’t feel pressured. You can absolutely build your financial life without credit cards. Focus on consistent income, savings growth, and a clean bill payment history. These all add up, even if they don’t flash on a credit score dashboard straight away.

Tap Into Newcomer-Focused Services

Some providers and programs cater specifically to migrants, refugees, international students, and people with thin files. You just won’t find them advertised during the footy.

Verido: Offers low-limit credit builder cards for migrants with no local score.
Harmoney: Peer-to-peer lending that looks at more than just credit score.
NILS (No Interest Loans): Through Good Shepherd, available to people on low incomes or facing financial exclusion. You can borrow up to $2,000 for essentials like whitegoods, laptops, or car repairs—no interest, no fees.
Financial Counselling Services: Free, non-judgmental advice from people who understand the system. Try MoneySmart, Wesley Mission, or The Salvation Army’s Moneycare.

If you’re on a visa, be clear about your status when applying. Some programs (like NILS) are open to holders of bridging or partner visas but not temporary student visas. Others are more flexible.

Renting? Offer Upfront Proof You’re Solid

It’s competitive out there. Especially in cities like Melbourne and Sydney, where dozens apply for the same shoebox flat. With no local rental history, the key is to demonstrate financial stability in other ways:

Include your employment contract and payslips (if applicable)
Attach references from previous landlords overseas
Offer to pay 2–3 months of rent upfront
Get a local guarantor (if you have one)

It’s not fair, but it works. And once you’re in a place, use it. Pay rent on time. Avoid cash deals. Keep records. Rental history is financial history.

Take Advantage of Community Support Networks

Sometimes, financial help isn’t about credit. It’s about breathing room. If you’re struggling to get set up—especially in your first few months—there are often quiet, local resources that can make a huge difference:

Asylum Seeker Resource Centre: Help with housing, employment, and emergency relief
Settlement Services International (SSI): Supports newly arrived individuals with education, employment pathways, and microloans
Local councils and community centres: Often offer one-off food vouchers, public transport cards, or referrals to support services

If English isn’t your first language, most of these organisations provide interpreters or multilingual staff.

Build Habits, Not Just Credit

The temptation to “catch up” to everyone else—especially if you’re used to a certain lifestyle back home—is real. But building a financial foundation takes time. And in a new country, it pays to go slow and steady.

Focus on:

Tracking your spending weekly (use apps like Frollo or MoneyBrilliant)
Building a buffer fund, even if it’s just $20 a week
Paying everything on time—not just because of your credit file, but because it builds momentum and self-trust

Within a year, your financial story will start to take shape. Your name will mean something to banks and landlords. Your credit file will have life in it. You won’t feel like you’re always explaining yourself.

Author Profile

Adam Regan

Deputy Editor

Features and account management. 3 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com