Your credit file has more than one chapter.
Defaults, a past Part 9 or a thin file don't end the conversation. Specialist lenders look at what has happened since.
Australian Credit Licence 509582. Lender fees may apply. Lender criteria apply.
Can I get a car loan with bad credit in Australia?
It may be possible. Some specialist lenders on our panel consider defaults, late payments or a Part 9 debt agreement alongside your current income and stability. Approval, rate and loan amount depend on each lender's assessment, and a higher rate is common when a credit file is impaired.
Different lenders use different credit criteria. We can check whether options on our panel may be worth discussing, but approval, rate and loan amount depend on the lender's assessment and responsible-lending requirements.
| Credit event | How a lender may look at it | What helps |
|---|---|---|
| Paid default | May be weighed less heavily than an unpaid one, and often reviewed with how recent it is | A letter or statement showing it is paid, and clean repayments since |
| Unpaid default | May limit the lenders available and the amount offered | Say so early, and show a plan or a payment arrangement |
| Late repayments | Frequency and recency usually matter more than a single late payment | Several months of on time payments on current accounts |
| Part 9 debt agreement | Some specialist lenders consider applicants in or after an agreement | The agreement documents and evidence the payments are up to date |
| Bankruptcy | The rules differ for current and discharged bankrupts, so see the bankrupts page | Discharge papers if discharged, and stable income since |
| No credit history | Treated as a thin file rather than a bad one | Steady employment, clean bank statements and any deposit you can add |
How to improve your position before you apply
None of these guarantees an outcome. They are the things lenders on our panel tend to look at first.
1. Read your credit report first
You can ask the credit reporting bodies for your report. Check every listed default and enquiry is accurate, and dispute what is wrong before a lender sees it.
2. Show stable income and clean statements
Lenders on our panel look at what has happened recently. Steady employment and bank statements without missed payments or frequent dishonours carry weight.
3. Add a deposit if you can
A deposit lowers the amount borrowed, which some lenders weigh in your favour. It is not required by every lender.
4. Deal with small existing debts
Closing unused buy now pay later and credit card limits can lift the amount a lender is willing to assess you for.
5. Think carefully before a co signer
A guarantor is taking on real risk if the loan is not repaid. Make sure they understand it before you ask, and note that not every lender requires one.
What to expect when you apply
A finance specialist reviews your circumstances and explains the options on our panel before anything is submitted. Lenders will ask for ID, income evidence and bank statements, and may ask about the default or agreement on your file. Responsible lending checks apply, so a lender may decline or reduce an amount if repayments do not look affordable. Timing depends on the lender and when your documents arrive.
We do not charge an upfront assessment fee. Lender fees may apply, and we may receive commission from a lender if your loan settles.
Bad credit car loans near you
The same lenders and the same rules apply across Australia. Each city page covers local income types and how we work with you remotely.
- Bad credit car loans in Perth
- Bad credit car loans in Brisbane
- Bad credit car loans in Adelaide
- Bad credit car loans in Melbourne
- Bad credit car loans in Sydney
- Bad credit car loans in Canberra
Also see car loans for bankrupts, Part 9 car loans and no deposit car loans.
Running your own business? See bad credit self employed car loans and bad credit tradie car loans.
We Look At Every Credit Situation
Different lenders use different credit criteria. Some on our panel may be worth discussing, and approval depends on each lender's assessment.
Defaults & Late Payments
Some lenders on our panel look at past payment issues alongside your current income
Discharged Bankrupts
Some specialist lenders consider applicants after discharge, case by case
Part 9 Debt Agreements
Some specialist lenders consider applicants in or after a Part 9 debt agreement
Centrelink Income
Some lenders accept government benefits as primary income
Bankrupt now or discharged? The rules differ, so we cover them separately in car loans for bankrupts.
A Fresh Start with Car Finance
Our team compares options on our panel for people who have been knocked back elsewhere, and explains the trade offs before you apply.
Second chances
Your future, not just your file
Past credit issues do not end the conversation
Your Privacy is Protected
We understand that discussing your credit history can feel sensitive. That's why we treat every application with complete confidentiality. Your information is secure, and we only share what's necessary with lenders once you've given us permission.
We do not charge an upfront assessment fee. Lender fees may apply, and we may receive commission from a lender if your loan settles. Submitting this enquiry does not itself create a hard credit enquiry. If you choose to proceed with a lender, a credit check may be required.
Bad Credit Car Loan FAQs
Answers to common questions about getting car finance with bad credit.
Specialist Bad Credit Lenders
We work with lenders who specialise in helping people with credit challenges.