Short answer: Yes, it is often possible, especially once the hardship arrangement has finished and you can show your finances are back on track. Hardship information doesn't lower your credit score, but lenders can still see it and will want to understand what happened.
What a hardship plan shows on your credit report
Since July 2024, a hardship arrangement with a credit provider may be recorded on your credit report as financial hardship information. The key points are:
- It is kept for 12 months from the month it relates to.
- It does not affect your credit score.
- While you meet the reduced repayments agreed in the arrangement, those months don't show as missed payments.
- Missed payments from before the arrangement, or payments missed under it, can still appear in your repayment history for two years.
So the hardship plan itself usually isn't the main problem. What lenders focus on is your current position.
Still on the plan versus finished
| Situation | How lenders tend to see it |
|---|---|
| Hardship arrangement still active | Many lenders won't approve new credit while you are formally unable to meet an existing commitment |
| Recently finished, normal repayments resumed | Possible with some lenders, especially with a few months of clean statements |
| Finished more than 6–12 months ago | Assessed mainly on current income, expenses and repayment history |
Licensed lenders must make reasonable inquiries and verify that a new loan is affordable. If you still need hardship help, a new car loan may add pressure rather than relieve it.
What helps your application
- Get your credit report first. You can get a free copy from each credit reporting body every three months. Check the hardship period, repayment history and any defaults are recorded correctly. Moneysmart explains how on its credit reports page.
- Show a steady run of payments. Three to six months of bank statements with bills and loan repayments paid on time carry real weight.
- Explain the cause. A reduced-hours period, illness or a relationship breakdown that has since been resolved is easier to assess than an unexplained gap. A short written explanation can help.
- Keep the loan modest. A cheaper, reliable car with manageable repayments is easier to approve and easier to live with.
- Avoid scattered applications. Each application can leave an enquiry on your file for five years.
Things to be careful of
If mainstream lenders decline, specialist lenders may still consider you, but their rates and fees are usually higher. Read the comparison rate, total repayable and any early termination fees before you sign. If a lender offered you hardship help and you think it was handled unfairly, you can complain to the lender and then to AFCA.
Been through a hardship arrangement? Tell us about your situation in about 60 seconds and a licensed broker will call you. No credit check to enquire.
Related guides
- How to get a car loan after financial hardship or default
- Can you get a car loan with an outstanding default?
- Missed a car loan payment? What happens next
General information only. This isn't financial advice. Finance the Ride is a referral service and doesn't hold an Australian Credit Licence. Last reviewed September 2026.
