How to Get a Car Loan with Bad Credit
Have you found your dream car but don’t have the cash to pay for it? Are you scared your bad credit will mean being rejected for a loan?
At Rapid Finance, we have helped thousands of customers get car loans with credit issues. View our full range of car loans.
They are a type of vehicle finance designed to assist borrowers having trouble obtaining loans through traditional lenders. This is often due to a low credit score or no credit history.
Lenders may see people with a low credit score as too risky. Other factors which may be seen as too risky, include self-employment, part-time work and those receiving Centrelink payments.
Rapid Finance has specialised in bad credit car finance approvals for over 20 years. We work with a network of understanding lenders who consider your past circumstances and explanations. Often funding loans even in cases of bankruptcy (after 12 months).
If you've been declined elsewhere, we could help!
We have over 20 years of experience in securing car loans for people with varied credit histories. Understanding life's challenges like relationship breakups, business issues, or other ups and downs. We offer help even with credit defaults, judgements, job changes, or relocations. Despite a low credit score, we could still assist you.
We could help with car finance for various situations, including bankruptcy, debt agreements, defaults (whether paid or unpaid), repossessions, and court judgements. Even if you've had payday loans, inquiries, a low credit score, or no credit history at all, we may still be able to assist.
Each loan application is unique, and Rapid Finance aims to find solutions for every customer. Being declined by a bank or lender doesn't mean a car loan is impossible.
If you've been declined elsewhere, don't worry - we know lenders who may consider your case. Our Free Financial Assessment offers tailored answers for your financial situation. Start today, and you could soon secure your car loan.
We could also assist in other situations, such as having overused buy now, pay later services, slow payment history on loans, or dishonours and overdrawn fees on your bank statements (with some limitations). Short-term employment, even as brief as one week, may be acceptable in certain cases.
Centrelink car loans are also available, and we also consider incomes from bonuses, overtime, and allowances.
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Please note: This is an estimate provided for illustrative purposes only and is based on the accuracy of information provided. It does not constitute a quote. Additional fees and charges may apply dependent on your individual circumstances. Fees, such as early repayment costs and establishment fees, are not accounted for in the examples of weekly repayments. Interest rates may be subject to change throughout the term of the loan.
As a general term, a bad credit car loan would apply to anyone who has been refused credit, due to their credit history. If you have a credit score of 500 or below, then you would be seen as having poor credit. Even if there is a past bankruptcy, part IX debt agreement or defaults on your credit file, we may be able to assist you - as well as many other situations.
This will depend on your circumstances and needs. If you need a vehicle for work, as an example, then waiting for your credit history to improve would not be practical. At Rapid Finance, we can often get our customers' car loan approvals, even with very bad credit. By getting the car loan and making your repayments on time, you should start to see your credit rating improve over time.
Rapid Finance also offers a service for you to Check Your Credit Report for Free.
A bad credit history can be due to a range of reasons. Whatever the reason, a bad credit history can make getting finance hard.
In most cases, you'll know if you have poor credit. But it's possible that you don't know the full details.
Rapid Finance can help you to Check Your Credit Report for Free and without a mark on your credit file.
You may alternatively consider contacting the Australian credit reporting agencies in order to get a copy of your credit history.
There are 3 Credit Reporting Agencies in Australia:
Equifax
Illion
Experian
Some lenders check one Credit Reporting Agency, some two of them and some do all three!
Yes, it is possible. You can apply for finance even while receiving Centrelink benefits or a pension. While not every benefit will be counted towards income, many are, including family tax benefits and the veteran’s affairs pension (see car loans for pensioners for a full list of Centrelink pensions which could qualify). In Fact, most benefits can be utilised with the exception of Austudy and Jobseeker as well as a few other smaller benefits.
To get approval for a car loan on Centrelink, you'll need a primary source of income to support these payments. But Centrelink benefits or a pension can be considered as part of your overall financial situation. Still unsure? Call Rapid Finance for more information.
Yes, it is possible through Rapid Finance. We have experience assisting our customers with both paid and unpaid defaults, get their car loans funded.
Yes, it is possible. While many of the main banks and lenders will only consider prime applicants - those with a credit score above 600 - Rapid Finance has access to a wide range of lenders and finance options for our customers. We have over 20 years experience assisting our customers obtain finance for car loans with a low credit history.
Yes, if you qualify. No deposit car finance is possible for people with a bad credit history. It comes down to your application and overall profile. But note that if you have a really low credit history, a deposit will add strength to your application and increase your chances of approval. There may also be other options available to you, such as a vehicle trade-in and / or additional security of another asset.
For approval, you will need to demonstrate your ability to meet repayments without any issues. As a Rapid Finance customer, a dedicated finance expert will review your situation, find out what is possible, and negotiate on your behalf. Talk to a Rapid Finance specialist for more information.
Yes, you could get a bad credit loan for a used car if approved. The details of the loan, such as the loan amount, may be reliant on other factors (Such as your overall profile). Generally, cars up to 12 years old are relatively easy to finance. However, depending on the age of the car and its value, it can sometimes be tricky to get your dream car. However, a Rapid Finance specialist can assist you through this process.
Rapid Finance won’t run multiple 'hard credit checks' like some brokers. We start with a 'soft credit check' and only proceed with a 'hard hit' once we've matched you with the right lender.
Getting a car loan without a credit check is generally not possible, as lenders must assess your financial situation under the National Consumer Credit Protection Act.
However, even with poor credit, you may still qualify for finance. A past loan with on-time payments can strengthen your application.
Another option is a rent-to-own car agreement. Since these are leases, they usually don’t require a credit check and may provide a path to ownership.
Yes, it is possible. If you’re self-employed, you can apply for self-employed car loans. We can prove your income and ability to meet repayments based on alternative documentation. Even if you have a poor credit history, there are ways we can look at strengthening your application, depending on your overall profile.
If your car loan is for business purposes, then consider applying for a business car loan. There are a number of options to consider that can potentially reduce your personal tax liability or match repayments with your income.
Not necessarily. While rent-to-own cars can seem like an easy solution for people with bad credit, they often come with higher weekly costs, limited vehicle choices, and strict conditions. A bad credit car loan could be a better alternative, depending on your situation.
With a car loan, you may have lower overall costs, more flexibility in choosing your vehicle, and a clearer path to ownership from the start. Some lenders specialise in helping people with poor credit, and you may qualify even if you've been declined elsewhere.
It’s worth exploring your finance options with us, before locking yourself into a rent-to-own contract.
Have you found your dream car but don’t have the cash to pay for it? Are you scared your bad credit will mean being rejected for a loan?
The irony of a credit score is that, often, people don’t know what theirs is like until they need to rely on it. So, how do you know if you have bad credit? And what does it mean for your loan application?
Turned down due to your credit history? Here's what you can do next to secure finance.