Buying a car is the leading personal finance purpose in Australia, accounting for well over $19 billion worth of new loans taken out over the four quarters up to September 2025. All that is to say that Australians of different backgrounds and financial situations are applying for vehicle finance, including those who’ve struggled with their credit.
If you find yourself in this boat, it’s important to know that there are still options available to you, even if a no credit check car loan isn’t possible through trustworthy sources.
Can I get a car loan with no credit check?
No, there are no reputable lenders who offer secured car loans without a credit check. That’s because all credit providers are subject to ASIC’s responsible lending obligations. This requires lenders to make “reasonable inquiries about a consumer’s financial situation, and their requirements and objectives” as well as a “final assessment… about whether the credit contract is ‘not unsuitable' for the consumer”.
In simple terms, this means that all lenders must do their due diligence to check that any potential loan is affordable for the customer. This involves thoroughly assessing their current financials, such as their income, spending habits, current debts and how they’ve managed past credit.
As a result, a credit check is always necessary, regardless of the strength of the profile. However, what that doesn’t mean is that those with bad credit won’t be able to access the car loan they’re looking for.
How can I get a car loan if I have bad credit?
There are plenty of specialist providers operating in the car loan market who offer bad credit car loans for those who may be turned away by the big banks and other prime lenders. These lenders will have more flexible criteria, such as lower or no minimum credit score and accepting certain types of defaults.
Ultimately, finding the right car loan if you have bad credit comes down to knowing where to look. Do your research with different lenders to find out who might be able to help you or applying for your car loan with a broker will likely give you the most confidence that your application is on the right path.
The advantage of getting help from the experts
"Having bad credit can make the car finance process trickier to navigate, but it doesn’t need to be. If you decide to apply through a broker, they’ll serve as the first line of defence for your application. You can learn what your options might be through specialist lenders without needing to submit a formal application and worry about it being rejected (and having it recorded on your credit file)."
Can I get a car loan with unpaid defaults?
Yes, it’s possible to be approved for a car loan with unpaid defaults on your file. However, this ultimately comes down to the nature of your defaults. There are two different types of defaults: non-finance defaults and finance defaults.
Ultimately, finding the right car loan if you have bad credit comes down to knowing where to look. Do your research with different lenders to find out who might be able to help you or applying for your car loan with a broker will likely give you the most confidence that your application is on the right path.
How to apply for a bad credit car loan with Savvy
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Complete our online application form
Tell us about your finances and credit situation while filling out our simple online form.
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Submit your documents
We’ll need to verify things like your identity and income, so send through any required docs.
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Discuss your finance options
Your broker will talk you through the potential vehicle loans on offer to you.
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Choose your car (if you haven’t already)
If you don’t have your ideal car in mind, our in-house car broker can find you a competitive price from our national dealer network.
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Have your application prepared
Once we have all the info we need, your broker will put together your application and submit it.
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Receive approval and settle the loan
If you’re approved, we’ll handle the settlement of the loan. Once that’s done, the car is yours!
Why apply for a car loan with Savvy?
Car loan alternatives with no credit check
While car loans aren’t available without a credit check, there are other ways to finance the purchase of a car that don’t involve someone checking your credit. The main option here is a rent-to-own agreement.
Under this arrangement, you’ll rent a vehicle from a rent-to-own provider for a set period (usually two years) before having the option to buy the car at the conclusion of the rental term. Because this isn’t a loan, your provider won’t have to complete a credit check when considering your application.
However, it’s important to note that rent-to-own finance agreements have come under the microscope for significantly inflating the purchase price of cars. A recent example cited in Western Australia saw a customer pay over $16,000 for a 2004 Nissan Pulsar, which is usually valued at closer to $3,000.
Consider whether this option is worth it based on the lack of credit check alone or if it’s better to opt for a specialist bad credit option.
