We’ve all heard it: “You have to get a credit card to build a credit score before you can get a mortgage.”
This kind of advice floats around at family BBQs, workplace lunches, and group chats — but here’s the truth:
At Fox Mortgage Services, we believe in giving guidance that’s grounded in facts, not financial folklore. And this one?
It’s a total myth.
❌ The Myth:
“If you haven’t had a credit card, lenders won’t take you seriously.”
✅ The Reality:
That idea mostly comes from the USA and the U.K. here in Australia, the lending system works differently.
You absolutely do not need a credit card to get a mortgage.
What lenders actually care about is your overall financial behaviour — not whether you’ve juggled credit cards.
💡 So What Do Lenders Look For?
Here’s what matters more:
- ✅ A consistent savings history
- ✅ Paying your bills on time
- ✅ Responsible use of any existing credit (like car loans or phone plans)
- ✅ Stable employment
- ✅ A clean track record with spending and bank accounts
Bottom line: they’re looking for reliability, not revolving debt.
⚠️ The Catch with Credit Cards
While credit cards are often seen as a “quick credit score fix,” they may actually hurt your chances of borrowing more.
Lenders are required to assume your cards are maxed out, regardless of your current balance. That means:
- ⚠️ lower borrowing capacity
- ⚠️ higher calculated monthly expenses
- ⚠️ less flexibility when applying
If you’re preparing to apply for a mortgage, we may often recommend reducing your limits or closing cards altogether.
🧠 What About My Credit Score?
You might already have one — even without a credit card. Even if you don’t have a credit score (or credit record recorded) this will not prevent you fro successfully applying for a home loan.
Mobile phone contracts, utility bills, and even personal loans contribute to your credit file. And if you’re unsure, we can help you check it and walk through what it means.
You can check your credit score online by contacting an online credit score provider. You should be able to do this for free, be wary of sites wishing to charge you fees or ask you to load in any payment details.
For more information the moneystart website has some further guidance.
💪 Getting Home Loan Ready — The Smart Way:
Here’s what we at Fox Mortgage Services recommend in the lead-up to applying for a home loan:
- 📄 Pay everything on time – from rent to phone bills
- 🏦 Show a consistent savings pattern over 3–6 months
- 💳 Cut down unused credit cards or limit increases
- 🚫 Avoid buy-now-pay-later services and payday loans
- 🧾 Keep spending clean and stable (no wild splurges pre-application)
- 🤝 Chat with us directly before applying online — we’ll help avoid early rejections and set you up for success
🚀 Final Word
You do not need a credit card to get a home loan. In fact, cutting it can often help you borrow more.
What you need is the right guidance from a team that understands both your goals and the lending landscape.
At Fox Mortgage Services, we’re here to help you make confident financial decisions — without the guesswork, stress or outdated myths.
Book an appointment with one of our team today.