📉 Can You Get a Car Loan with a Low Credit Score?
Yes! Even with a low credit score, you can still get car finance—but it may not be as simple as walking into a bank. Many traditional lenders reject applicants with poor credit, but some specialist lenders offer bad credit car loans tailored to those in financial recovery.
Understanding how your credit score affects loan approval can help you find the right lender and improve your chances of getting a car loan.
📊 What Credit Score Do You Need for a Car Loan?
In Australia, credit scores are divided into different risk levels. Here’s how your score affects your car loan approval chances:
| Credit Score (Equifax) | Approval Chances | Likely Loan Terms |
|---|---|---|
| 🟢 Excellent (833-1200) | Very high ✅ | Lowest interest rates, easy approval. |
| 🔵 Good (726-832) | High ✅ | Competitive rates, strong approval chance. |
| 🟡 Fair (622-725) | Possible ⚠️ | May require a larger deposit or higher interest. |
| 🟠 Poor (510-621) | Low ❌ | Banks may decline, but some lenders offer bad credit loans. |
| 🔴 Very Poor (0-509) | Very low ❌ | Difficult to get approved without a broker. |
If your score is below 725, traditional lenders may see you as high risk, making approval more challenging. However, alternative lenders and brokers specialize in helping people with lower credit scores.
✅ How to Get a Car Loan with Bad Credit
If you've been rejected due to a low credit score, follow these steps before reapplying:
1️⃣ Check Your Credit Report – Ensure there are no errors affecting your score.
2️⃣ Reduce Existing Debt – Paying down credit cards or loans improves your creditworthiness.
3️⃣ Save for a Deposit – A deposit can increase your approval chances and lower interest rates.
4️⃣ Choose a Secured Loan – Using the car as security can help get better loan terms.
5️⃣ Use a Finance Broker – A broker can connect you with specialist lenders who approve bad credit car loans.
🚀 How a Finance Broker Can Help with Low Credit Car Loans
A finance broker can help you get approved, even if banks have rejected you. Brokers work with lenders who specialize in bad credit car loans and can:
✅ Find lenders willing to approve low-credit applicants.
✅ Negotiate better interest rates than applying alone.
✅ Prevent further damage to your credit score by avoiding multiple applications.
If traditional lenders won’t approve your car loan, don’t give up! 🚗💨 A broker can help you get the car finance you need, even with a low credit score.
DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.
