Can I Get a Car Loan with No Credit Check?

Although you can’t get a car loan without a credit check, there are still plenty of options if you’ve struggled with bad credit in the past.
Driver receiving the keys to her new car
  Written by 
Thomas Perrotta
Thomas Perrotta is the managing editor of Savvy. Throughout his time at the company, Thomas has specialised in personal finance, namely car, personal and small loans, although he has also written on topics ranging from mortgages to business loans to banking and more. Thomas graduated from the University of Adelaide with a Bachelor of Media, majoring in journalism, and has previously had his work published in The Advertiser.
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Last updated
April 17th, 2025


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Millions of Australians use car loans to help them finance their vehicle purchase, but if your credit score isn’t the best, it might seem like there aren’t any options open to you. All reputable lenders will conduct credit checks, so there’s no way around it. The good news, however, is that having bad credit won’t necessarily stand in the way of car loan approval.

Are there any car finance options available with no credit check?

Some lenders do advertise “no credit check car loans”, but this is rare on the market today. That’s because lenders in Australia are bound by responsible lending obligations (which we’ll get into in the next section). These obligations make it very hard to avoid completing credit checks while remaining legally compliant.

As a result, you should approach any lender advertising this product with caution. They may be in breach of these obligations. Additionally, those who don’t conduct checks will charge higher interest and fees to compensate for the increased risk of not knowing what’s on your file.

The one alternative that doesn’t require a credit check is a rent-to-own agreement. This involves you renting a vehicle from a provider for a set period (usually two years). At the end of this period, you’ll have the option to buy the car.

As it isn’t a loan, you won’t always need a credit check, but it’s worth investigating to see if it’s the best option for you. Savvy can help you work through your available bad credit car loan options.

Why do lenders always conduct credit checks?

As mentioned, lenders in Australia must follow strict responsible lending obligations. These obligations are set out in Chapter 3 of the National Consumer Credit Protection Act 2009 and enforced by ASIC. They prevent lenders from offering a credit product or encouraging someone to enter into a contract that isn’t suitable to them.

Beyond their obligations, there are several reasons why a lender would want to conduct a credit check, including:

  • Assessing risk: a credit check provides insight into the borrower’s credit history and financial behaviour, which can help a lender determine the risk of a borrower defaulting on a loan.
  • Determining interest rates: credit scores play a major role in determining the interest rate offered on a loan. Borrowers with higher credit scores are typically offered lower interest rates, as they are considered less risky.
  • Reducing fraud: a credit check can help to prevent fraud by confirming that the applicant is who they claim to be.

How can I get a car loan if I have bad credit?

Believe it or not, there are more options out there for borrowers with bad credit than you might think. It all comes down to knowing where to look. Here’s how you can be approved for a car loan with bad credit:

  • Meet your lender’s criteria: lenders will have requirements related to your age, residency, employment and minimum income, among other factors.
  • Pass their minimum credit score requirements: many lenders will have a minimum credit score requirement. However, some bad credit specialists will focus on other factors.
  • Show that you can afford your repayments: the loan you’re applying for should be affordable for you. Lenders won’t approve your application if they have doubts about whether you can manage the repayment. Certain Centrelink payments can be accepted as income, too.

An alternative to the standard bad credit car loan model is an unsecured personal loan. These may be required if the vehicle you want to buy is too old or not in good enough condition for a secured car loan. However, these loans come with higher rates and fees, though they can often be turned around more quickly.

When you apply with Savvy, we’ll connect you with one of our flexible lending partners. Your dedicated consultant will work behind the scenes to secure you the best available deal for your situation.

Can I get a car loan with unpaid defaults?

Depending on the nature of your defaults, you may still qualify for a car loan with unpaid defaults. There are two types of default: non-finance and finance defaults.

Lenders are generally more relaxed about non-finance defaults. These can include things like utility or phone bills. In many cases, having a few of these on your file won’t stand in the way of approval with specialist lenders (even if they’re unpaid).

However, finance defaults may be tougher to get around. These are defaults on other loans, such as personal or car loans. If you have recent unpaid finance defaults, your chances of approval are much lower. Paying off outstanding debts before you apply for another loan is always advised.

Five tips to improve your credit score and land a car loan

  • Pay your bills on time

    A history of on-time payments demonstrates your reliability in managing debt. The more positive credit behaviour you show, the more your credit score is set to benefit.

  • Avoid any new defaults

    Defaults immediately before an application will not only impact your credit score negatively, but also potentially sink your chances of getting approved.

  • Lower unnecessary credit limits

    If you aren’t using your full credit card limit or have store credit cards with high limits going unused, lowering or closing them can help you increase your credit score.

  • Don’t frequently reapply

    Repeated credit enquiries will show up on your file and can have a negative impact. On top of this, lenders may be put off with what comes across as desperate applications.

  • Check your credit report for errors

    Some of the issues on your file may not be your fault. Be sure to obtain a free copy of your credit report and double-check that you haven’t been penalised incorrectly.

Car loan FAQs answered

Can I get a car loan as a discharged bankrupt?

Yes – there are lenders who can offer car loans to those discharged from their bankruptcy. As long as you satisfy all the required criteria, we work with lenders who can work with you as soon as one day post-discharge.

If I’m under a Part IX debt agreement, can I still be approved?

In most cases, you won’t be approved for a car loan if you’re currently under a Part IX. There may be certain situations and lenders where this might be possible, though. When you apply with Savvy, you can speak to one of our experienced consultants about your options if you find yourself in this boat.

What documents will I need for my car loan application?

You’ll need the following documentation and information to apply for your car loan through Savvy:

  • Driver’s licence (front and back)
  • Your last two consecutive payslips
  • Your last tax return (self-employed only)
  • All the forms provided to you by Savvy and your consultants
  • 90 days of bank statements may be requested
  • Details about your car (such as its make, model and age) are useful to have

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