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 Put you back in control

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Do you have bad credit and need a car?

Debt Fix could help

Are you looking for a new car, but been turned down for finance because of your poor credit history? Even if you've been rejected by traditional lenders, there are options out there to help you get the used vehicle finance that finance you need.

No obligation assessment
Free assessment   

I have bad credit, can I get a car loan in Australia?

Whether you have a bad credit reputation, such as an unpaid default or a settled Part 9 Debt Agreement, Debt Fix's consultants can help you understand all the options available. We work with a panel of reputable lenders who specialise in car loans for people with poor credit, and with our expertise we could help you find a suitable vehicle loan which suits your circumstances.

Call 1300 332 834 to speak to a Debt Fix Loan Specialist today or complete our contact form for a no-obligation assessment.

Bad Credit History Car finance

Having your own vehicle is often a necessity, especially if you're a trades person or have special needs. Most people don't have the cash up front to buy a car, so often a loan is needed for financing the purchase. Unfortunately, not everyone qualifies for a car loan from conventional lenders.

These days, it is all too common for loan applicants to be refused a loan. Many people are unaware they have bad credit. Whatever your situation, our expert team will help you.

What does bad credit mean?

When you make a loan application with a bank or other lender, they carry out a credit check to see if you meet their requirements. This allows them to see your complete credit file, including any missed or late payments on loans, credit cards or utility bills as well as any defaults, bankruptcies, debt agreements or other negative financial information that could suggest you might have trouble keeping up with your repayments.

If you have a bad financial history or a low credit score, this can make it difficult to get approved for a loan by some lenders. However, even if the big banks reject your application, there are many alternative lenders / finance providers who are quite prepared to provide the funds you need on flexible terms that you're happy with.


What are bad credit car loans?

Some lenders specialise in offering car loans for people with poor credit, while others may also offer bad credit home loans and other types of finance. As these lenders are shouldering the risk of offering new car loan or loans to applicants with bad credit histories, they usually charge more to help cover the risk.

Compared to a standard car loan, bad credit car loan amount and terms may vary. Bad credit car finance usually has:

  • Higher interest rates
  • Higher fees and penalties
  • Extra security requirements, such as a guarantor

Your Debt Fix advisor will recommend the most cost-effective solution for your unique circumstances.

Am I eligible for car finance?

Bad credit doesn't make it impossible to get a car loan, but it can make it more difficult. Non-bank lenders often have different requirements to banks when assessing your suitability for finance and are willing to give a chance to people with poor credit, as long as you can show that you'll be able to pay back the loan.

Debt Fix might be able to help you even if you have:

  • Bad credit or no credit history. We can help check your credit report
  • Paid or unpaid defaults or judgements
  • Discharged bankruptcy (6 months)
  • Discharged Part IX Debt Agreement

To be approved for car finance, you will usually need to be:

  • At least 18 years old
  • An Australian citizen or permanent resident
  • Currently employed or receiving income and can demonstrate that you can service the loan

We have close relationships with lenders and can help to get your loan application approved with a fast turnaround. If you're not sure whether a loan is the right choice for you, we'll also discuss alternatives that could be a better match.

To get started with your loan application, contact us today.

How do car loans work?

Your Debt Fix advisor will help you every step of the way to make sure your loan application has the best chance of success. The normal process is as follows.

1. No obligation assessment

Contact Debt Fix to discuss your finance options with one of our experienced advisors. We'll discuss your needs and examine your financial situation to help you decide whether a bad credit car loan is the best choice for you. We'll assess factors such as your income, employment status and living arrangements to determine what type of loan would be affordable and sustainable in your situation.

2. Pre-approval

Once you've made your application, the finance provider will assess your suitability for a loan. They may ask for more documentation such as payslips or financial and bank statements to help them make this decision and to set bad credit car finance rates. Debt Fix offers quick car loan approval within 24-48 hours, so you won't have to wait long to know whether you've been pre-approved and can start to shop for your new vehicle.

3. Finance your car

Once your loan is pre-approved, you'll start to make regular repayments to the loan provider at the agreed rate until the loan is settled.

If your circumstances change and you think you might have trouble keeping up with repayments, or you want to pay off your loan faster, contact Debt Fix so we can discuss this with your lender.

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Pros and cons

Depending on your circumstances, (i.e. you may have bad credit, default or discharged Part 9 Debt Agreement) a car loan could be the best option for financing your vehicle purchase. Your Debt Fix advisor will make sure you know all the options and the possible risks so you can make an informed decision.

Advantages of car finance with Debt Fix

  • Low requirements – even if you've got a “colourful” credit history, car loans are available to most borrowers who meet the minimal requirements.
  • Range of options – we work closely with a panel of lenders in Australia and will help you to find the best deal.
  • Simple application – we'll help you to complete your loan application and tell you all the documents you need to provide.
  • Quick car loan approval – most loans are pre-approved within 24-48 hours.
  • Direct payments – a direct debit can be set up with your bank account to send payments automatically, so you won't have to worry about missing installments.

Disadvantages of bad credit car loans

  • Higher interest rates – bad credit lenders may charge higher interest to cover themselves in case you default on your loan.
  • Higher down payment – some loans may require that you pay more for your car upfront rather than higher interest.
  • Pay more overall – a loan that charges higher interest will cost more in the long run, especially if you choose a longer loan term.

While there's more chance of your car loan application being accepted by a non-conforming lender, you could still be ineligible if you don't meet the criteria. If that happens, Debt Fix can discuss other options to help you find the right solution.

Why choose Debt Fix?

At Debt Fix, we know how easy it is to be refused a loan, even through no fault of you own. We believe everyone deserves the chance to access the finance they urgently need, whether that's a car loan with paid default, bad or no credit rating or even bankruptcy.


When you're pre-approved for a car loan with Debt Fix, we'll keep your financial information confidential. The car dealership won't know about your credit history, so you can purchase the car you want with confidence.

Competitive rates

Bad credit car finance rates tend to be higher than conventional loans, but we'll still help you get the best value. We have access to a range of lenders and loan products, making it easier to find an affordable loan that suits you.

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For over 15 years, we've helped Australians with bad credit, defaults and other special circumstances to get the financial help they need. Debt Fix advisors take the time to understand your situation and your needs so we can recommend the best loan product to suit you, with no obligation to continue.

Contact our team today to find out more and discuss your bad credit car finance options.

Frequently asked questions about bad credit car finance

Negative activity on your credit report can make it harder to get a conventional loan, as it shows lenders that you've had financial difficulty in the past. Poor credit may be caused by:

  • Late or missed payments on loans, credit cards or other debt
  • Late or missed payments on utilities and other financial commitments
  • Defaulting on a debt (not paying for more than 60 days)
  • Entering into bankruptcy or a formal debt agreement
  • Court judgements, summons and writs related to debt
  • Making too many credit enquiries at the same time

Bad credit doesn't last forever, but it can stay on your credit file and affect your applications for several years. These are usually removed from your credit report automatically after this time, depending on the circumstances.

  • Late and missed payments – 2 years
  • Defaults – 5 years or 7 years with no contact from the lender
  • Bankruptcy – 5 years from the start of bankruptcy or 2 years from the date bankruptcy ends
  • Formal debt agreements – 5 years or when the Debt Agreement ends (whichever is the latter)
  • Court judgements, summons and writs – 5 years
  • Credit inquiries – 5 years

Repairing your credit score isn't something that can be done overnight, but the sooner you start, the better. Try the following to improve your numbers and your chances of being approved for credit in the future:

  • Request a copy of your credit report from one of Australia's credit reporting agencies – Equifax, Experian and illion.
  • Check your credit report to see any areas where you could improve or to find errors that should be reported to the agency.
  • Make repayments on time and in full. If you have trouble keeping up with a loan or credit card payment, talk to the lender about adjusting your payments.
  • Don't apply for too many loans in a short space of time, as this could show lenders that you're in a bad situation.
  • Talk to a Debt Fix advisor about options to help you manage existing debt, such as a debt consolidation loan.

The term of your car loan will depend on how much you want to borrow and how much you can afford to pay back each month. Loan terms typically range from 1 year to 7 years. A longer term loan can leave you more money left over each month, but you could also end up paying more in interest overall.

If your circumstances change and you want to increase your repayments to save on interest overall, this is usually possible, but it may involve an early repayment fee. Your Debt Fix advisor will help you to work out whether you'd be better off paying your car loan early or keeping to your original payment schedule.

There can be more fees and charges involved in car loans for people with poor credit, but this varies by lender. There may be an initial setup fee, a monthly account fee and administration fees. You may also be penalised if you choose to pay off your loan early or if you miss payments.

Find out more about our other solutions