Bad Credit Doesn’t Have to Limit How Much You Can Borrow

Rapid Finance on 21 December 2014

What’s the point of getting a car loan if you can’t borrow enough to buy the vehicle you need?

If you apply for a car loan, you want to be able to borrow enough to fund the vehicle you actually need – with flexible repayment options that you can manage. Even if you have a bad credit history, it could be possible to borrow enough to put that vehicle not just within your reach, but within your garage.

The case studies below show in practical, real life terms how much it could be possible to borrow for a car loan – even if your credit history has a few dents in it.

So if you're worried your borrow amount won't be able to cover the cost of a new vehicle, just remember: it's not as if it hasn't been done before.

Simone: Able to Fund Vehicle After Multiple Credit Defaults

Simone, a single mum from Narre Warren South, was working two jobs and paying off a mortgage when she came to Rapid Finance for assistance in 2014. Prior to applying for a car loan, she had multiple defaults on her credit file including an unpaid car repossession.

As Rapid discovered, the defaults on her credit file were due to a messy breakup.

With a bad credit history such as she had, it was uncertain how much Simone would be able to borrow to finance her vehicle – or whether she could get approval for a car loan at all.

Fortunately, Rapid Finance was able to confirm Simone’s improved financial position and employment stability to potential lenders. As a result, Simone was able to obtain the car finance she needed.

Simone now owns a 2012 Mitsubishi ASX Platinum, having been able to borrow a total of $18,370 – even with a bad credit history. The repayments total $306.95 per fortnight over 3 years, a loan structure that is well suited to Simone’s financial and personal circumstances.

Holger: Unemployed Pensioner, Successful Car Loan Applicant

When Holger approached Rapid Finance in August 2014, he was unemployed but hoping to get a car loan on a veteran’s affairs pension. He was looking to borrow enough to fund the purchase of a Holden Commodore.

Though Holger’s credit statement clearly displayed his unemployment and pension – both of which showed risk to lenders – he also had a very stable financial profile. Rapid Finance was able to prove this stability to lenders, by showing them 3 months’ worth of Holger’s bank statements as well as a veteran’s affairs statement which confirmed his income.

The result? Approval.

With a little help from Rapid, Holger was able to borrow a total of $20,743 with repayments of $218.60 per fortnight over 5 years, a commitment which an examination of Holger's personal expenses and commitments showed he was well able to manage. This was enough to finance a 2011 Holden Commodore Omega, the loan for which Holger is now paying off.

Troy: Lacking Financials, Enjoying Car Finance

Troy, another of our success stories, came to us to see if he could get a car loan while self-employed. Though he was looking to finance a commercial vehicle for business use, his lack of financials presented a possible barrier to his borrowing enough to fund it.

At that point in time, Troy’s business had been operating for less than a full year, and as a result he did not have any tax returns to show potential lenders. What he did have, however, was another car loan that he had been repaying for 9 months with perfect conduct.

Rapid worked closely with Troy to prove to lenders the stability of his financial situation. Once his first car loan reached 12 months of good repayment performance, we were able to use this example of good conduct – as well as his previous experience in the industry – to obtain approval for the amount he needed to borrow under the secondary loan.

Rapid was successful in matching Troy with a $50,932.20 loan, with a repayment rate of $1,036.15 per month over 5 years. Today, Troy is driving a 2011 Ford Ranger, the loan for which he is currently paying off.


Don’t dampen your borrowing expectations because of a bad credit history. Even if you have experienced credit defaults, or lack financials – it could still be possible to borrow enough to finance the vehicle you need.

Depending on your past and present financial situation, Rapid Finance could match you with up to 100% finance for a vehicle, with manageable repayment structures that won’t leave you out-of-pocket.

Don’t give up. Rapid could help you maximise the amount you can borrow.

For advice on how much you can borrow with bad credit, contact Rapid Finance on 1300 467 274.