No Existing Credit

What Does No Credit Mean?

No existing credit refers to a situation where an individual has not yet established a credit history. This is often the case for young adults, new immigrants, or people who have previously operated on a cash-only basis, or had some credit issues in the past, and have not tried to establish a new credit history. Without a credit history, lenders and brokers like us at Ltd. have no way of assessing your financial responsibility based on past behaviour. This can make securing a mortgage more challenging, but not impossible.

The Significance of No Existing Credit

When applying for a mortgage, having no credit history can be a hurdle. Lenders typically prefer applicants with a proven track record of repaying debts on time. However, having no existing credit doesn’t automatically disqualify you from securing a mortgage. It simply means that lenders will have to use other methods to assess your creditworthiness.

The Anatomy of No Existing Credit

Without a credit history, lenders will look at other factors to determine your ability to repay a debt. These can include your employment history, income, and the amount of savings you have. They may also consider your payment history for rent, utilities, and other regular expenses.

Employment History and Income

Stable employment and a steady income can show lenders that you have the means to repay a mortgage. If you’ve been with the same employer for a long time, this can be particularly beneficial.


Having a significant amount of savings can also work in your favour. It shows lenders that you are financially responsible and capable of saving money.

Payment History

Even without a credit history, you may still have a history of making regular payments for expenses such as rent and utilities. Consistent, timely payments can demonstrate financial responsibility.

Strategies to Establish Credit

If you have no existing credit, there are several strategies you can use to establish a credit history:

  1. Secured Credit Card: A secured credit card is a type of credit card that requires a cash deposit as collateral. This can be a good starting point for establishing credit.
  2. Credit-Builder Loan: Some financial institutions offer small loans designed to help individuals build credit.
  3. Authorized User: Becoming an authorized user on someone else’s credit card can help you start building credit.

Need More Information?

At Ltd., we can provide advice on establishing credit and help you understand how your credit situation impacts your mortgage options. We have access to lenders that work with applicants that are credit challenged. We can also help you understand the different types of mortgages available and which one might be the best fit for your financial situation.


While having no existing credit can make securing a mortgage more challenging, it’s not impossible. By understanding what no existing credit means and how to establish credit, you can increase your chances of securing a mortgage. Remember, establishing credit is a process that takes time, but the benefits are well worth the effort. With patience and discipline, you can establish a credit history and increase your chances of securing a mortgage. We at Ltd. are here to provide valuable guidance throughout this process.