Short answer: It may be possible, but what a 500 score means depends on which credit bureau produced it, and lenders look at far more than the number. With a low score, mainstream lenders often decline, while specialist lenders may approve a smaller loan at a higher rate if your income is stable and recent conduct is clean.
What does 500 actually mean?
Australia has three main credit reporting bodies: Equifax, Experian and illion. They use different scales (Equifax goes to 1,200, the others to 1,000) and different bands, so a 500 from one isn't the same as a 500 from another. Lenders also run their own scoring using the detail in your report. Check all three reports for free to see the full picture. Moneysmart lists how to get them.
What's usually behind a low score
- Defaults. Debts of $150 or more, 60+ days overdue, that were formally listed. They stay for 5 years, even once paid, though the paid status is shown.
- Missed payments. Repayments 14 or more days late show in your repayment history for 2 years.
- Lots of enquiries. Several credit applications in a short time. Enquiries remain for 5 years.
- Insolvency. Debt agreements or bankruptcy.
- A thin file. Very little credit history can also produce a modest score.
Financial hardship arrangements are recorded separately and don't affect your credit score.
What lenders weigh besides the score
- How recent the problems are, and whether they've been paid or settled
- Stable employment and regular income
- 90 days of bank statements without dishonours or signs of stress
- A deposit, which reduces the lender's risk
- A sensible loan amount and vehicle
The cost of a low score
Specialist lenders price for risk. The difference can be significant.
Example only: $15,000 over 4 years at 9% p.a. is about $373 a month and $2,920 in interest. At 16% p.a. it's about $425 a month and $5,400 in interest.
Check the comparison rate, all fees, and whether there are early payout costs. Some people take a higher-rate loan, make every payment on time, and later refinance once their file has improved.
Steps to improve your position
- Get your reports from all three bureaus and dispute errors (it's free)
- Pay or arrange to pay any outstanding defaults
- Keep every current account up to date for the next few months
- Stop applying for credit while you prepare
- Reduce unused credit card limits
- Save a deposit if you can
If you're struggling with existing debts, the National Debt Helpline (1800 007 007) offers free financial counselling.
Related guides
- How fast can you improve your credit score?
- Subprime car loans: risks and benefits
- Bad credit car finance
Credit score lower than you'd like? Tell us about your situation in about 60 seconds and a licensed broker will call you. No credit check to enquire.
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.
