Yes, it can be possible to get a car loan with bad credit in Australia, but the answer depends on why your credit is poor. A lender reads the whole credit report, not just one number. It will look at defaults, late payments, recent enquiries, your income and how your bank accounts are run.
Credit scores also aren’t one universal number. Equifax, Experian and illion each calculate their own score on their own scale, so “600” can look quite different depending on which report you are holding. A low score usually means higher cost, a smaller choice of lenders or both, and approval is always subject to the lender’s policy.
The sensible path is to check your report, fix anything wrong, tidy up what you can, and then make one targeted application.
What does a credit score of 600 actually mean?
It depends on the scale. Equifax says its credit score is a rating between 0 and 1,200 (Equifax, checked October 2026). Experian and illion score out of 1,000. CreditSmart explains that different bureaus calculate scores slightly differently, and gives a rule of thumb for each scale (CreditSmart, checked October 2026).
| Scale | CreditSmart rule of thumb for “good” | Where 600 sits |
|---|---|---|
| Out of 1,200 (Equifax) | Above 661 | Below the “good” guide |
| Out of 1,000 (Experian, illion) | Above 540 | Above the “good” guide |
So the same 600 can be a weak result on one bureau and a reasonable one on another. A score is also only a summary. Two people with the same score can have very different reports, and lenders have their own policies on top of any bureau score.
Can I get car finance with a credit score of 600?
Possibly. There is no official cut-off that decides approval, because each lender sets its own credit policy. What matters more than the number is what sits behind it.
A 600 caused by one old late payment and clean conduct since looks quite different from a 600 with a recent default and several new enquiries. Your income, deposit, the car you want and how long you have been in your job also feed into the decision.
If you have been declined already, read what to check before applying again after a car finance decline before you lodge anything else.
Can I get a car loan with a low credit score?
A low score doesn’t automatically close the door, but it can narrow your options. Some lenders have stricter credit policies, while others will consider applications with a past default or late payments if the rest of the file is strong. This varies by lender and changes over time.
Typical trade-offs include a higher rate or fees, a larger deposit requirement, a shorter term, or limits on the age and type of vehicle. Moneysmart’s car loan guide is a good place to understand the costs involved (Moneysmart, checked October 2026).
What do lenders look at besides your score?
Lenders usually assess the full picture. Common checks include:
- Defaults and overdue accounts. A default is a serious missed payment. CreditSmart says a default stays on your credit report for five years, and paying it off does not remove it (CreditSmart, checked October 2026).
- Repayment history. CreditSmart says a missed payment is only reported if you are at least 14 days late, so a payment you catch up within a couple of days normally still shows as on time.
- Recent enquiries. Several applications in a short window can make a lender more cautious.
- Income and employment. Stable, verifiable income matters, including how long you have been in your current job or business.
- Existing debts and card limits. These reduce what you can service.
- Account conduct. Overdrawn accounts and dishonoured payments on bank statements can count against you even if your score looks fine.
- The vehicle and loan structure. Age, price, deposit, term and any balloon all affect risk.
Responsible lending rules also require lenders to make reasonable enquiries about your finances before offering credit (ASIC, checked October 2026).
How do I get a car financed with bad credit?
There is no trick, but there is a sensible order. These steps give you the best chance of a clean application:
- Get your credit report. CreditSmart says you can request a free report every three months. Moneysmart also explains how to check your report and what it shows (Moneysmart, checked October 2026).
- Look for errors. Wrong defaults, accounts that aren’t yours and old enquiries you didn’t make can be disputed with the credit reporting body.
- Understand the cause. Work out whether the problem is a default, late payments, too many enquiries or high limits.
- Reduce what you can. Close or lower unused card limits and clear small overdue accounts.
- Show clean conduct. A few months of on-time payments and no overdrawn accounts helps.
- Pick a realistic car and structure. A newer, cheaper vehicle, a bigger deposit or a shorter term may suit a lender’s policy better than a stretch purchase.
- Apply once. Compare lenders before you lodge, rather than applying to several.
Not every step is possible for everyone, and some take months. That is still usually cheaper than a rushed application that is declined.
How can I get a car loan with a bad credit score quickly?
Time pressure is when people make the costliest choices. If you need a car quickly, the safest approach is to prepare the documents first, check your report, and compare more than one option before committing.
Gather recent payslips or tax returns, bank statements, ID and details of your existing debts. A tidy file makes it easier for a lender to assess you. A broker can help match your situation to lender policy before an enquiry is made. See car finance broker vs dealer finance for how those paths differ.
If the numbers only work with a very long term or large balloon, it may be better to wait or choose a cheaper car. You can test different scenarios with the car and personal loan calculator.
Is a no credit check or guaranteed approval car loan safe?
Be very careful. Responsible lenders must assess whether a loan is suitable for you, so an offer that says “no credit check” or “guaranteed approval” should raise questions (ASIC, checked October 2026).
Warning signs include:
- no questions about your income or expenses
- pressure to sign on the day
- vague or hard-to-find fees, or only the weekly repayment shown
- very high costs that are only explained after you commit
- a lender you can’t verify
NewGen doesn’t offer guaranteed approval, and no honest broker can. If a deal looks too easy for a poor credit file, check the total cost over the whole term. Moneysmart also explains what to do if a loan application is rejected (Moneysmart, checked October 2026).
Will a car loan with bad credit cost more?
It often can. Lenders may price higher perceived risk into the interest rate, fees or both. We don’t publish rates here because they change and depend on your profile.
What to compare:
- the interest rate and comparison rate
- establishment and ongoing fees
- the total you will repay over the term
- any balloon and what happens if the car is worth less than expected
- early repayment terms
Our guide to comparing car loan rates explains how to line offers up. A cheaper weekly repayment over a longer term can cost more in total.
What should I do after my credit improves?
If you take a loan now, a good repayment record can help later. You may be able to refinance when your credit improves, but check any exit fees and whether a new loan would actually cost less. The same applies if you are balancing several debts; our debt consolidation page explains when that may help.
How can NewGen help with a car loan and poor credit?
NewGen Finance Brokers arranges car loans from our Bass Hill, Sydney base. We can review your situation, explain what lenders are likely to focus on, and compare options from our lender panel before you apply. Finance is subject to lender approval, and lending criteria, fees and charges apply.
This article is general information and not personal advice. For your own situation, see our car loan options or start an enquiry.