Bad Credit Car Loans with Money Matchmaker™

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“Super quick, I got lots of offers. All I had to do was choose which one! I went with Wisr because they were the cheapest. Thanks” - Angela

Can I get a car loan with bad credit?

Firstly, it’s definitely possible.

These days lenders have access via your credit report to see:

  • Any missed payments
  • Paid or unpaid defaults

Your credit score and history shows lenders your past performance with other companies.

You'll need to be able to give the lender an understanding of why you had missed payments or defaults.

And of course, your situation may be much better than what it was previously. You may have a new job, be earning more money, paid off some defaults and kept up with all your commitments.

If this is the case, getting a car loan with bad credit should be achievable.

Not all bad credit is created equal

For instance, if you have paid your defaults off, that is looked at more favourably to unpaid defaults.

Also in this context, a default to an energy company, or a gym for instance is a lot more favourable to a default to another finance company.


credit history

So what are the hoops you have to jump through?

For people with bad credit, lenders are going to want to understand two things:

  • The history of any defaults and ultimately get comfortable with them.
  • They’re going to want to make sure you have the ability to repay the loan.

If these two things check out, a lender will be able to offer you a bad credit car loan, but it's likely going to have higher interest rates and some fees attached.

This is because you're being considered higher risk than someone who has excellent credit.

What you can do to improve your chances of getting approved:

  • Pay all unpaid defaults
  • Be in regular, paid employment. The longer, the better.
  • Show that you can save the amount for a period of time that your loan repayment would be.
  • Don’t apply with everyone, all at once. Each lender will make an enquiry on your credit file which can make it worse.

If you want to see if you're eligible for any loans you should try our Money Matchmaker™ it won't affect your credit score.

Adding a 20% deposit will be viewed favourably by lenders and significantly increase your chance of approval.

How lenders view credit history

For people looking for a car loan with a bad credit history, the good news is, there are lenders who specialise in financing cars for you.

credit history applicant

What lenders are looking for

Lenders love boring, or should we say, consistency!

They love it if you've had the same job forever and have been at the same house since you first left home.

Here's an example of how your employment history can influence your approval.

employment history applicant

Find the best deal on bad credit car loans


Am I eligible?

You can qualify for car loans with bad credit in Australia if you are:

  • Over the age of 18; and
  • An Australian Citizen or Permanent Resident; and
  • Are employed or have a regular source of income; and
  • Have been discharged from bankruptcy or a Part IX for a minimum of 12 months; and
  • Can show you are capable of meeting your repayments.
  • Show good bank account conduct

How do I know if I have bad credit?

Often people find out from a lender declining their application.

If this happens, you need to request a copy of your credit report from one of Australia’s three credit bureaus:

Once you’ve got your credit report, you’ll be able to see where any slip-ups in the past have happened.

Sometimes, you’re able to dispute these.

Novated Lease

What you need to look for on your credit report

Some people may even have bad credit without realising it.

Lenders will look at all defaults on your credit file when assessing an application, which will include everything from unpaid telco bills to credit card defaults and more.

There are a couple of types of bad credit and not all are created equal in the eyes of lenders:

  • Non-financial defaults - i.e anything that isn’t a financial default or insolvency. This could be gym memberships, phone bills, or power bills.
  • Financial defaults - i.e. credit cards or personal loans. Financial defaults are considered more serious than unpaid bills.

With these 2, financial defaults are frowned upon and will make it the most challenging to get a bad credit car loan.

The two types of defaults you need to know

There’s one more thing to keep in mind when looking at your credit file: whether any defaults are paid or unpaid.

Paid defaults show you have made an attempt to clear your debt and are taking responsibility for your finances are the preferred type of default.

With unpaid defaults, depending on what they’re for exactly, a lender may ask you to make good on this before they extend a loan to you.

What about bankruptcy and Part IX debt agreements?

You’ll need to wait until you have been discharged from your bankruptcy or part IX debt agreement for a minimum of 12 months before you can apply for a bad credit car loan.

Meet your Potential Car Loan matches

Meet Plenti
  • No Early Repayment Fees
  • No Monthly Fees
  • Get Funds 24 Hours From Approval
Meet Wisr
  • Same day decisioning
  • No admin, early repayment or "risk" fees
  • Support from real people
Meet Society One
  • No ongoing fees
  • No monthly fees
  • No Deposit Required
Meet Fair Go
  • Build your credit score by making timely repayments
  • Once approved, loans are funded in minutes
  • Flexible repayments; weekly, fortnightly, monthly options
Meet Finance 1
  • Pay your loan out early with no fees
  • Change payment dates and frequency at any time
  • Make extra repayments at any time
Meet Greenlight
  • No risk fees
  • Flexible Weekly, Fortnightly & Monthly payment frequency,
  • Make extra repayments at any time
Meet Jacaranda
  • Apply in under 8 minutes
  • Once approved, cash transferred in 60 seconds
  • No early termination fees
  • Approval in 24 hours
  • Balloon options to reduce repayments
  • No ongoing or discharge fees
Meet Money3
  • Pay your loan out early with no fees
  • Increase regular payments to suit your situation
  • Make extra repayments at any time
Meet Now Finance
  • Get a guaranteed, personalised rate in 2 minutes
  • Apply online in under 10 minutes
  • Weekly and fortnightly repayments
Meet Alex
  • $0 establishment fee: offer expires 3NOV21
  • $0 ongoing fees, early repayment fees, exit fees
  • Multi Award winning and 100% digital

The benefits of using Money Matchmaker™ to find your Car Loan

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How Money Matchmaker™ works

Just like when you use a dating app or go to a broker, we use your answers to show you real lenders, real rates and actual repayments across all our lenders that you’re eligible for; without any broker fees or marked up interest rates.

  • You tell us about you and we scan your profile through our Money Matchmaker ™ engine.
  • We give you all the results that you match with, without any advertising or promoted offers, these are the real rates and fees, just like you’d receive when applying directly with a lender.
  • You can then choose the lender you wish to match with.

The right car loan can save you $1,000s



Money Pty Ltd,
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Moorabbin, VIC, 3189 Australia


Money Pty Ltd trading as Money
ABN: 42 626 094 773
ACL: 528698
AFCA: 83955

© Copyright 2021 Money Ltd.


Money Pty Ltd (trading as provides information about credit products and is authorised to do so as the holder of Australian Credit Licence 528698. does not compare every Lender in Australia. We are not a broker or credit provider and when we provide information via this website, we are not providing you with a recommendation or suggestion about a particular credit product. When you apply for a credit product via the website, you are not applying with us, you are applying directly with a Lender Partner. Before entering into any credit product from one of our Lender Partners, you should confirm the rates and product information with the Lender. All information on this website is general advice only and does not take into account your objectives, financial situation or needs. You should consider whether this advice is right for you and we encourage you to seek independent financial advice.