Bad Credit Car Loans Australia
Been knocked back by banks? You're not alone - and you're not out of options. At Your Lending Friend, bad credit car loans are our specialty. We work with lenders who look at your whole situation, not just your credit score.
We understand life doesn't always go to plan. Your past doesn't define your future.
A bad credit score can make getting a car loan feel impossible. Banks take one look at your credit file and say no. It's frustrating, especially when you need a car to get to work, take the kids to school, or just live your life.
Here's the good news: specialist lenders exist for exactly this situation. They understand that good people sometimes hit hard times. A default from three years ago doesn't mean you can't afford repayments today.
At Your Lending Friend, we connect you with these specialist lenders. Our brokers understand bad credit lending inside and out, and we'll work to find you the best possible option for your situation.
Who Can We Help?
We specialise in finding car finance solutions for people in challenging credit situations
What Counts as Bad Credit?
Defaults
When a bill over $150 is more than 60 days overdue, it can be listed as a default. These stay on your credit file for 5 years.
Low Credit Score
Scores below 500-550 are generally considered poor (though this varies by lender).
Multiple Credit Enquiries
Lots of loan applications in a short period can lower your score.
Bankruptcy or Part IX
Bankruptcy stays on your file for up to 7 years. Part IX debt agreements are listed for 5 years or until completion.
Bad Credit Car Loan Rates
Interest rates for bad credit car loans are typically higher than standard car loans. This reflects the additional risk lenders take.
| Credit Situation | Typical Rate |
|---|---|
| Good credit | 6% - 10% p.a. |
| Fair credit | 10% - 14% p.a. |
| Poor credit / Paid defaults | 12% - 18% p.a. |
| Unpaid defaults / Recent bankruptcy | 15% - 22% p.a. |
* Rates are indicative only and depend on individual circumstances.
The Silver Lining: A bad credit car loan can actually help rebuild your credit. Make your repayments on time for 12-24 months, and you may be able to refinance to a better rate as your credit score improves.
How We Help You Get Approved
Our proven process gives you the best chance of approval
Honest Assessment
We review your credit file and financial situation honestly. No false promises - just straight talk about your options.
Lender Matching
We know which lenders suit which situations. We match you with the right fit for your specific circumstances.
Strong Application
How your application is presented matters. We highlight your strengths to give you the best chance.
Clear Communication
No confusing jargon or hidden catches. We explain your options clearly so you can make an informed decision.
Tips to Improve Your Chances
Small steps can make a big difference in your approval odds
Get a copy of your credit report
Know what lenders will see. Check for errors that could be corrected.
Pay off small defaults if possible
Even small wins can help improve your approval chances.
Show stable employment
Ideally 3+ months in your current job demonstrates reliability.
Demonstrate savings ability
Even small regular savings show financial discipline.
Don't apply everywhere
Multiple applications hurt your score. Let us do the searching.
Be upfront about your history
We can't help if we don't know the full picture.
We See Beyond Your Credit Score
A divorce. Medical bills you didn't expect. A business that didn't work out. We've helped thousands of Australians who've been through tough times find car finance. No judgement - just solutions.
Your past doesn't define your future.
Related Resources
Learn more about your bad credit options
Bad Credit Car Loans FAQs
Common questions about getting a car loan with bad credit
Defaults stay on your credit file for 5 years from the date they were listed, regardless of whether you pay them off. However, a paid default looks better to lenders than an unpaid one.
It's very difficult to get credit while bankrupt. You'll gen...
It's very difficult to get credit while bankrupt. You'll generally need to wait until you're discharged (usually 3 years from filing). Once discharged, we can help - though waiting 12+ months post-discharge improves your options.
Usually, yes. Bad credit loans typically have higher rates b...
Usually, yes. Bad credit loans typically have higher rates because lenders are taking on more risk. However, the rate you're offered depends on many factors, and making consistent repayments can help you refinance to a better rate in 1-2 years.
There's no universal minimum. Some specialist lenders don't ...
There's no universal minimum. Some specialist lenders don't use credit scores at all - they assess each application individually based on your current circumstances. We've helped people with scores in the 300s get approved.
Not usually. Most bad credit car loans don't require a guara...
Not usually. Most bad credit car loans don't require a guarantor, though having one can sometimes help you get approved or secure a better rate.
A deposit isn't always required, but having one (even 10-20%...
A deposit isn't always required, but having one (even 10-20%) can significantly improve your chances and the rate you're offered.
Still have questions? Contact our friendly team