Avoiding debt your whole life sounds like the ultimate financial win, but as anyone who has ever tried to buy a home without a credit history soon realises, having zero credit history can be almost as damaging as having bad credit.

A reader named Johanna recently shared her frustrating story with me.

Like many cautious consumers, Johanna had avoided taking up unnecessary credit. She only had mobile contract with Telkom in order to build a credit score. Yet when she applied for a home loan, the banks were hesitant.

“I’ve never had debt in my life because I didn’t need it, but now that is negatively impacting me,” Johanna told me.

“If my Telkom contract is worthy of being used on my credit score report, why is it unworthy to be used by the banks when I want to take out a home loan?”

It’s a common dilemma. According to Rhys Dyer, CEO of the ooba Group, a minimum credit score of 610 is generally required to qualify for a bond, but banks don’t reject credit-light applicants outright.

Major lenders like FNB and SA Home Loans confirm that while a lack of credit history makes it harder for them to track an applicant’s past borrowing behaviour, it’s not an automatic disqualification.

FNB Product Head Mfundo Mabaso explains that lenders take a holistic view of your finances, weighing up income stability, overall financial behaviour, and affordability.

SA Home Loans CEO Rob Kelso points out that demonstrating responsible day-to-day money management and a steady income can carry just as much weight as a long credit history.

How to strengthen your home loan application

If you are credit light, self employed, or starting from scratch, you can significantly improve your odds of getting approved for a home loan by focusing on these key areas:

Demonstrate affordability

Lenders are legally required to ensure that you can comfortably afford your monthly bond repayments under the National Credit Act. Existing debt repayments should not exceed 30% of your monthly income.

Mabaso notes that a common mistake when applying for a home loan is listing your current rent as well as a future bond repayment, without realising that those rent payments will disappear once you buy a home.

Demonstrate income stability

Banks prefer steady, predictable income streams. If you are formally employed, showing three to six months of stable payslips is usually straightforward.

If you are self employed, you can still qualify by proving a consistent, documented income history over a longer period.

Save for a healthy deposit

A large deposit is your best friend if you are credit light. It lowers the lender’s risk, reduces your monthly repayment (making it easier to clear the affordability checks), and can even secure you a better interest rate. Saving up for a large deposit also demonstrates financial discipline.

Choose the right property

Remember that the property itself acts as collateral for the bank. Lenders will evaluate whether the purchase price matches the property’s valuation, its condition, and how liquid the local market is.

Tools like FNB’s nav»Home app feature can help buyers cross-reference property values before applying.

Get a qualified buyer’s certificate

If you want to test your financial health before officially applying to a bank, Dyer recommends getting a qualified buyer’s certificate. This free process mirrors a bank’s rigorous financial assessment, allowing you to catch weak spots, clean up documentation, and strategise improvements to your savings or credit profile ahead of time.

For more insights from industry leaders at ooba, FNB, and SA Home Loans, check out my original article on News24.