Credit Score for New Migrants in Australia (2026)

Quick Answer: When you arrive in Australia, you have no Australian credit file — not a bad score, not a zero score, simply no file at all. Your credit history from the UK, India, USA, New Zealand, or anywhere else does not transfer to Australian bureaus. You start building from scratch the moment you open your first Australian credit product. Your first calculated score (typically after 3–6 months) is usually in the 500–600 range (Average) due to a thin file. With the right strategy, new arrivals can reach Good (650+) within 12–24 months. If incorrect entries appear on your file — misattributed debts, authorisation errors, identity mix-ups common with new arrivals — Australian Credit Solutions can dispute them under the Privacy Act 1988. 98% success rate. No Win No Fee. ASIC ACL 532003. Industry Excellence Award 2022, 2023 & 2024. 4.9/5 from 976+ reviews. Over 5,000 Australians helped since 2014.

Australia's credit reporting system is entirely separate from every other country's system. It doesn't matter if you had an excellent credit score in the UK, USA, India, South Africa, or New Zealand — that history means nothing to Equifax Australia, Experian Australia, or Illion. For more, see our guide on no credit history in australia? how to build it from scratch.

This can feel deeply unfair. You've spent years building a responsible financial track record and arrive here with nothing to show for it in Australian lenders' eyes. Here's how to rebuild efficiently.

What "No Credit File" Means in Practice

When a lender accesses your credit file for the first time and finds no file, they receive what's called a "thin file" or "no file" response from the bureau. This doesn't automatically mean rejection — many lenders have specific policies for new arrivals — but it does mean they have no behavioural data to assess.

What lenders typically do with a thin-file applicant:

• Apply more conservative approval criteria
• Request additional documentation (employment contract, bank statements, rental history)
• Offer lower initial limits than they'd offer an established customer
• Charge a slightly higher rate reflecting the unknown risk profile

Starting a credit history is a chicken-and-egg problem: you need credit to build a credit score, but you need a credit score to get credit. Here's how to crack that cycle. For more, see our guide on build credit history australia: starting from zero in 2026.

Your Credit Building Timeline as a New Arrival

Under Comprehensive Credit Reporting, the positive repayment history you build from month 1 is recorded and accumulates — meaning the 24-month window fills progressively with positive signals.

Step-by-Step: Building Credit in Australia as a New Migrant

Step 1: Open an Australian Bank Account (No Credit Impact)

Opening a transaction account with one of the major banks (ANZ, Commonwealth, Westpac, NAB, Bankwest) doesn't create a credit file or affect your score — transaction accounts are not credit products. But they establish your identity in the banking system and provide income and transaction history that helps with future credit applications.

Open this within your first week. Choose a bank with good migrant banking programs — CBA, NAB, and ANZ all have established new migrant account programs with reduced documentation requirements for recent arrivals.

Step 2: Get an Australian Phone Plan (Low-Risk Credit Entry)

A postpaid phone plan is often the easiest first Australian credit product to obtain. Some providers (Telstra, Optus) run credit checks; others use lighter verification. A 12–24 month phone plan with on-time direct debit payments provides your first positive Comprehensive Credit Reporting entries.

Warning: If you default on a phone plan — even a small Telstra account — a default can be listed on your Australian credit file just like any other credit product. Set up direct debit from day one.

Step 3: Apply for a Secured or Entry-Level Credit Card

Several Australian banks offer credit cards specifically designed for new-to-credit customers including recent migrants:

• Commonwealth Bank Low Rate Credit Card — available to new customers with employment documentation
• ANZ First Credit Card — low limit, easy entry criteria
• NAB StraightUp Card — fixed monthly fee, no interest, lower barrier to entry
• HSBC — globally established customers can sometimes leverage international relationship

A secured credit card (where you deposit money as security) is also an option if standard cards are declined — though these are less common in Australia than in the US market.

Start with a low limit ($500–$2,000). Use it for one predictable monthly expense (streaming service, fuel). Pay it in full every month by direct debit. This creates clean monthly CCR repayment entries without any risk of balance accumulation.

Step 4: Avoid Multiple Applications

Every credit application creates a hard enquiry on your new file. For a thin-file applicant, two or three rejections in quick succession — each creating an enquiry — can create a negative pattern before you've even established any positive history.

Apply to one product at a time. If rejected, wait 3 months before applying again and use that time to understand why (contact the lender for a reason in writing).

Step 5: Use Your Rental History as Supporting Evidence

Australian credit files don't automatically record rental payment history — but timely rent payments with a licensed real estate agent can be documented and provided to lenders as alternative evidence of repayment behaviour. Services like Rental Ledger and Equifax's Rental Ledger product allow tenants to create verifiable rental payment history records. Some lenders now accept this as supplementary evidence.

Common Credit Mistakes New Arrivals Make

Mistake 1: Applying for too many products at once. The desperation to establish credit quickly leads to multiple simultaneous applications — creating an enquiry cluster that signals risk before any positive history exists.

Mistake 2: Not setting up direct debits. Missing a payment because of confusion about Australian banking processes (different BSB/account formats, different payment cycles) creates CCR late markers. Automate everything from day one.

Mistake 3: Mixing up visa and immigration status concerns with credit file concerns. Your visa type affects what products you can access (permanent residents vs temporary visa holders have different options) but your visa status is not recorded on your credit file and doesn't directly affect your credit score.

Mistake 4: Using a credit card from a foreign bank issued in Australia. Some international banks issue credit cards to customers when they arrive in Australia linked to overseas accounts. These may not report to Australian credit bureaus — meaning you get the risk of a credit product without the credit-building benefit.

Case Study: Preethi, Melbourne — From No File to Home Loan Pre-Approval in 3 Years

Preethi, 34, arrived from Chennai on a skilled migrant visa in early 2022. She had an excellent credit history in India — irrelevant to Australian bureaus. She followed a deliberate credit-building strategy: ANZ bank account in week one, Telstra phone plan in month two, NAB low-limit credit card in month four, a car loan at month 18 (approved on employment documentation and 14 months of clean card history).

By month 36, her Equifax score had reached 694 — Good band. Combined with her permanent residency (granted at month 30) and stable employment documentation, she received home loan pre-approval in early 2025.

Australian Credit Solutions reviewed her file at month 30 when she was preparing for the home loan search — confirming no incorrect entries and advising on limiting new credit applications in the 6 months before submitting.

Clean file, clean strategy, achievable timeline — 3 years from no file to home loan pre-approval.

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Frequently Asked Questions

Does my overseas credit history count in Australia? No — Australian credit bureaus (Equifax, Experian, Illion) do not receive or recognise credit history from overseas credit reporting systems. Your credit score and history from the UK, USA, India, New Zealand, or any other country starts fresh at zero in Australia. You must build a new Australian credit history from your first Australian credit product.

How long does it take to build a credit score in Australia as a new migrant? Your first calculated credit score typically appears after 3–6 months of having at least one credit product. This initial score is usually in the Average range (500–580 on Equifax) due to a thin file. Reaching Good (650+) typically takes 12–24 months of consistent positive repayment history across one or two credit products.

Can I get a credit card in Australia without a credit history? Yes — several Australian banks offer entry-level or low-limit credit cards for customers without established Australian credit history, including recent migrants. CBA, ANZ, NAB, and HSBC all have products accessible to new arrivals with employment documentation and a bank account. A secured credit card (deposit-backed) is also an option. Starting with a low limit and building from there is the recommended approach.

Does a temporary visa affect my credit score in Australia? Your visa type does not appear on your credit file and does not directly affect your credit score. However, visa status affects what products you can access — some lenders have restrictions on lending to temporary visa holders, particularly for home loans. Permanent residents have broader access to credit products. Check what products are available at your current visa stage.

What happens to my Australian credit file if I leave Australia? Your Australian credit file remains active regardless of whether you are in Australia. Any accounts you leave open (or any defaults from unpaid debts) continue to accumulate on your file. Credit entries retain their standard retention periods (defaults: 5 years, enquiries: 5 years, CCR history: 2 years). If you return to Australia, your file picks up exactly where you left it.

Can I get a home loan in Australia as a new migrant? Yes — but criteria are stricter than for established residents with credit history. Most major banks require permanent residency or an eligible visa, at least 12–24 months of Australian credit history, employment documentation, and a larger deposit (typically 20%+) for temporary visa holders. Specialist lenders may have more flexible criteria. A credit file review before applying is strongly recommended.

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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.

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