How to Get A Personal Loan Without Credit History

no credit history

Getting a credit card without credit history can be easy, but obtaining a loan is not as simple. With limited or no credit history, you’ll need to be a little more creative and financially savvy to get a loan.

To approve you for a loan, most companies use your credit history (and credit score) to determine how much of a risk you are. Without this score, getting a loan can be very difficult, but there are some options available. Your first step should be building your credit, but if you need a loan quickly, there are some options within your reach.

It’s helpful to know why your credit history matters in the eyes of financial institutions, what you can do to improve your credit history, and how to get a personal loan without credit history.

Why Your Credit History Matters

Banks and other financial institutions judge their risk in lending money by looking at your credit history and equivalent credit score. It’s not uncommon for someone to reach a point in their life where they are in need of some kind of loan but have limited credit history, which means you may not have a credit score. This could be because you are fairly young, or because you haven’t needed any credit cards or loans. Maybe you were taught that you should save up and buy this with cash in hand, and there’s nothing wrong with that, but it does make things a little more complicated.

It’s not impossible to get a loan with no or limited credit history, but it can be quite a challenge when you apply for your first loan. This is because financial institutions want to assess your risk before lending you money. They can see this in your credit history by looking at:

  • Whether you have repaid all of your monthly bills and/or loans on time
  • What types of credit or loans you have successfully repaid
  • How many lines of credit you have open

The upside of this is that no credit history is better than having bad credit history, but you are still an unknown risk. Many financial institutions and banks could still decline your application, even though you don’t have bad credit.

How to Build Your Credit History

If you’re early on in your financial journey and you’ve been struggling to get a loan, you may need to spend some time building your credit.
Financial obligations that help build your credit history include:

  • Phone contract for a mobile plan (not prepaid or debit plans)
  • Credit card payments
  • Cut any extra unnecessary expenses

Some things that will help build up your credit are as follows:

Get a Low-Cost Credit Card

One of the easiest ways to build your credit history is to get a credit card and pay the balance in full every month. This will build positive credit over time, and it’s not a hard switch to make. You could start by purchasing all of your groceries and petrol and consider putting all of your monthly bills on an automatic payment plan through your credit card.

Consider using an app that can help keep you organized, such as Prism or Mint. Having all of your accounts in one place makes it easy to build credit history by paying your bills on time. If you’re not into high-tech solutions, just put a reminder on your calendar! It’s an easy way to build good credit history fast if you stay up-to-date with your bills.

If you haven’t had a credit card before, avoid getting a card with a large credit limit, because you may be tempted to overspend.

If you don’t want a credit card, you can also apply for a personal overdraft. This is a line of credit attached to your bank account. You can overdraw your balance to a certain limit without a penalty.

Pay Your Bills On Time

This goes hand-in-hand with the suggestion above. The simple act of paying your bills on time has a huge impact on your credit score. Why is this important? Lenders typically see this as past payment performance, which is considered a good indicator of future performance.

What type of bills should you be paying attention to?

Credit card bills
Loan repayments (Personal, auto, student, etc.)
Phone bills
Internet bundles

Remember that an overdue payment could remain on your credit report for five years! Make sure you pay in full to get the best credit score possible.

A monthly phone contract and utility account may also be reported and help build up your credit history.

Use A Credit-Building Loan

This is a useful and fairly straightforward solution for people without any history of credit. The lender will let you borrow a small amount of money, which is deposited into a savings account. You will make monthly payments towards the loan, which positively impacts your credit score. The lender will report this, and when you’ve paid off the loan, you get access to the funds. The payment amounts are usually very low, so anyone with an income can easily fulfil these types of loans.

Get Help From Someone With More Experience

Have a family member or close friend with multiple credit cards and loans coach you through the beginning of your financial journey. If you have shared bills (such as with a parent or partner), put the bills in your name to help build your credit, but make sure you’re able to pay them off on time each month. Make sure if you have trouble remembering things that you’re communicating well with your finance buddy, as they can help you remain accountable.

What To Avoid While Building Your Credit

What this all comes down to is your financial habits. Lenders want to see proof that you’re responsible with your money. The faster you make noticeable positive changes, the faster your credit score will reflect those changes. Financial counselling could also be a great option for you if you’re feeling overwhelmed by the amount of work you have to do and the many choices that come with making big changes to your spending and financial habits.

  • Make sure everything you do financially is well within your means. Successful payments on your credit card and on-time bill payments look good to lenders. But be careful and plan out your budget, because if you start missing payments this could easily backfire and instead of building good credit, you could end up with bad credit.
  • If you’re just starting out, remember that multiple credit applications (for credit cards and loans) in a short period of time take points off your score. It can also look suspicious to lenders.
  • Only apply for credit when you really need it, and only in an amount that is reasonable and responsible. If you’re used to using cash, put that cash into an account dedicated to paying off your credit card each month.

It takes a little work and a little patience, but all that time and effort put into building your credit score will be worth it when you are finally able to get that loan you need.

How to Borrow Money with No Credit History

But what if you don’t have time to build your credit history? You need a loan, and you need it now. Maybe you’re buying your first home, purchasing a new car, or going back to school. Use the following tips to get started and get more creative with your financial future.

Prove You’re A Good Candidate for a Loan

Lenders like seeing ways you are reliable in your daily life. When applying for your loan, proof of your own financial responsibilities will be a big asset. They want to know that you’re steady and dependable.

  • Financial prudence – Evidence of saving every month
  • A full-time, permanent job with regular income
  • Paying rent in the same city for several years
  • No history of late payments on bills, bounced checks, or failed payments
  • An income that allows you to make the repayments on the loan you are applying for

It’s helpful to have documents that will back this up when you apply for a loan.

Get a Secured Loan

You’ll be far more likely to be approved for a loan if you can offer up some assets. These can include vehicles or other things of major value. Secured loans also typically offer less interest. These are safer for banks and financial institutions because they have something to back up your repayment agreement, so they’re more willing to overlook your lack of credit history.

Find a Credit Union

This may be the best place to get a loan with no credit history. Credit unions are often more willing to overlook a lack of credit history. They act more like small community banks and are usually looking for borrowers. If you can afford the terms, you can most likely find someone willing to work with you.

I Need a Loan With No Credit History, And I Need It Now!

Remember to be realistic about your loan. If you are seen as a risk or a complete wildcard, it’s rare that an institution will agree to lend you money. Take the above steps to work on your credit history and prove your reliability. Remember that some loan types and amounts will remain out of reach until you have a good credit score. This is partly due to responsible lending standards set by banks, so do your research to find a loan type that works for your financial situation.

Nifty Loans are more lenient than traditional lenders, and will look at your current financial status, not just your lack of credit history. Our goal is to give all Aussies a fair go, so we give anyone the chance to apply for a loan. We want to make borrowing cash easy so you can reach your financial goals. Our online application is super easy. Just apply online, we’ll assess your application, and you’ll hear from us in no time.

Apply, Assess, Approve

Before you start, have these details on hand for your online application:

  • Contact details including an active mobile number and email address
  • Bank account details
  • Employment information
  • Reason for your loan
  • MyGov details if applicable

We’ll do our best to help! There’s no paperwork involved, making the process as simple as possible. If your loan is approved, you’ll get cash in your account as soon as the next business day.

So, What Are You Waiting For?

No credit history or limited credit history can make it tough to get loans, but not impossible. We’re committed to giving every Aussie a fair go at finance, whether you have bad credit or no credit – you can apply for one of our bad credit loans today!

We know how easy it is to be disappointed by loan applications being rejected, but there are ways to borrow money with no credit history. Set yourself up for success and follow some of the above tips to improve your credit history, or contact Nifty Loans to see if you qualify for any of our online personal loans.

If you have any questions, don’t hesitate to contact us. We may be 100% online, but behind the screen is a whole team of friendly loan specialists on hand to answer your enquiries. Ask us anything and our customer service team will do their best to help! Give us a call or send us an email at

Our goal is to help you reach your next step in life, whether it’s buying a house, purchasing a new car, going back to school, or anything else you might need a little financial boost for.
Online loans with no credit history are within your reach! Apply for a personal loan with Nifty Loans today.

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Who can apply?

18 Years and Older Can Apply For Loans

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Emergency Cash Loans When Earning an Income For More Than 3 Months

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How it works

Small Loans

$300 - $2,000

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Loan amounts:$300 - $2,000
Terms:3 - 6 months
Establishment fee:20%
Monthly Fee:4%
APR:N / A *
Comparison Rate:138.37%**

Small Loan Example

Loan amount:$1,000
Terms:6 Months,
(24 weekly repayments)
Establishment fee:$200
Total other fees:$240
Total payable:$1,440
Weekly installments:$60.00

Medium Loans

$2,001 - $4,600

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Loan amounts:$2,001 - $4,600
Terms:13 - 24 months
Establishment fee:$400
Monthly Fee:$0
Comparison Rate:65.86%**

Medium Loan Example

Loan amount:$2,500
Terms:24 Months,
(104 weekly repayments)
Establishment fee:$400
Total other fees:$1,609.44 (reducing interest)
Total payable:$4,509.44
Weekly installments:$43.36

Large Loans


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Loan amount:$5,000
Terms:13 - 24 months
Establishment fee:Variable
Monthly Fee:$0
Comparison Rate:48%**

Large Loan Example

Loan amounts:$5,000
Terms:18 months,
(78 weekly repayments)
Total Interest:$1,897.54
Total payable:$6,897.54
Weekly installments:$88.43

* Not applicable. Small loans do not charge an annual interest rate.

** 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. Different loans may include other payable fees and charges. All fees and charges will always be displayed on your loan contract.

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