Bad Credit Car Loans | What Credit Score You’ll Need to Buy a Car

Bad Credit Car Loans: What Credit Score You’ll Need to Buy a Car

Bad credit car loans getting you back on the road

Are you asking yourself what credit score you need to get a car loan in 2020? Or you’ve got bad credit and need a car loan? If so, you’ve come to the right place! Nifty has a reliable, no-nonsense broker finding service that can help you get on the road today. With Nifty’s broker-finding service, you can apply for loans from $10,000 to $100,000 and we don’t discriminate against those looking for bad credit car loans. To find out how to become one of the hundreds of Aussies getting back on the road with Nifty, keep reading! 

We promise that bad credit car loans aren’t as scary as they may seem. We’ll explain everything you need to know about obtaining a car loan with bad credit so there’s no need to stress.

Credit scores made simple 

A credit score is a number between 0 and 1,200 that is calculated from the information in your credit report. This number represents your financial habits. Your credit score is affected by a variety of factors, such as: 

  • How reliably you pay back your bills and loans;
  • The amount of money you’ve previously borrowed; 
  • How long your credit history is; and
  • Your current debt.

Essentially, it reflects how well you are able to manage your debt. The higher the number, the better your credit score. On the other hand, the lower your number, the worse your credit score. When applying for any type of loan, your lender will look at your credit score during the application process. This number will show your lender how responsible and trustworthy you are as a borrower. 

It is also important to know that there are some things that don’t affect your credit score. For example, your employment status, income and amount of savings won’t affect your credit score. However, these are things that your lender may still want to check when reviewing your application for a loan. It may give your lender a more complete idea of your financial situation, rather than only looking at your credit. This is why it is possible to find a lender who will offer you bad credit car loans.

Comparing your credit score

Equifax, an Australian credit reporting body, has made it easy to compare your credit score. They’ve split the range of credit scores into five broad but simple sections. This makes it easy for lenders to assess how risky it may be to lend money to you. Compare your credit score to this table below to find out if you have good or bad credit.

EXCELLENT: 833 – 1200 It is highly unlikely that something could harm your credit report in the next twelve months.
VERY GOOD: 726 – 832 It is unlikely that something could harm your credit report in the next twelve months.
GOOD: 622 – 725 It is less likely that something could harm your credit report in the next twelve months.
AVERAGE: 510 – 621 It is likely that something could harm your credit report in the next twelve months.
BELOW AVERAGE: 0 – 509 It is more likely that something could harm your credit report in the next twelve months.

Where to find out your credit score 

If you don’t know what your credit score is, you can easily apply online to check. You should always do this before you decide to take out a loan. This will ensure that you can be upfront and honest with your lender. It also means that there will be no surprises for you or your lender!

The Australian Government website provides three reliable credit reporting bodies that you can check your credit score through. These are Equifax, Experian and Illion. These three bodies are approved by the government, so they are obliged to give you access to your personal credit report once every twelve months. The application process is simple and safe, so you can find out your credit score today. 

Car loans with bad credit

If you’ve got a credit score in the excellent and very good range, you typically won’t have a problem getting a car loan. Those with good and average credit scores may also get car finance from certain lenders. However, people with bad credit may have some trouble obtaining car loans. 

If you have looked at the table and discovered that you have bad credit, this will present some financial challenges. For example, some lenders may turn you down for a loan due to a bad credit score. However, there are many other, reliable lenders out there who may be willing to give you a chance and will offer you bad credit car loans

How much should I borrow?

With Nifty’s broker-finding service, you can apply for loans from $10,000 to $100,000. We encourage you to research the type of car you want, considering things such as the year, make and model. These factors will affect the price of the car and therefore the amount you will need to borrow. Carefully weigh these up against your financial situation to find out what you can reasonably afford to loan.

Other factors to consider

Bad credit can sometimes be indicative of unfortunate financial predicaments of the past. This can have a long-term negative impact on your credit score. However, have a look at some other factors, such as your employment situation and your income. These can sometimes be a good indicator of what you can reasonably afford to pay back on a loan. 

Interest rates

As well as showing lenders how responsible you are as a borrower, credit scores can affect the interest you pay on your loan. For example, bad credit may mean that lenders will stick a higher interest rate on your loan. However, don’t stress – Nifty will connect you to brokers who will do their best to find you a lender that offers competitive interest rates. 

Our car broker service explained 

Nifty Loans offers a broker finding service. This means that we work with a broker to search the loan market and find the loan best suited to you. We use experienced brokers who will do all the work for you so you don’t have to stress! They’ll consider your financial situation, your credit score and the amount you’re looking to loan. They then calculate what you can reasonably afford to spend on a car loan. 

If you have bad credit, our brokers will search for bad credit car loans with affordable repayments and interest rates. No matter what it is that you’re after, our broker finding service will find the best option for you! 

Rehabilitate your credit score 

Taking out car loans with bad credit isn’t always a bad thing. In some cases, bad credit car loans can provide a gateway to a good credit score. If you can keep up with all your repayments, this will demonstrate that you are a trustworthy borrower. Future lenders will see that you can make repayments on time and therefore be more inclined to lend you money. Over time, your credit score may also increase. 

Additionally, another method to improve your credit is to maintain your outstanding debt below 30% of your overall credit limit. If you take out a car loan, make sure that the amount you will have to repay does not exceed this 30% rule. Constantly reaching your credit limit may show lenders that you are always strapped for cash. If you are borrowing below your credit limit, lenders will see this as a responsible financial decision.  

What are you waiting for?

If bad credit car loans sound like something you would be interested in, then contact Nifty today! We can help you find car loans starting from $10,000. We can’t guarantee approval of bad credit car loans, but we do our absolute best to find you a broker to help. 

Our application process is quick, easy and 100% online. All we need to know are some personal details (such as your full name and residential address), your mobile number and your email address. We will also need to ensure that you meet the following requirements:

  • Are you over 18-years of age?
  • Do you have a valid driver’s license?
  • Are you an Australian citizen or permanent resident?
  • Have you been receiving a regular work income into your personal bank account for the last 3 months?
  • Do you have a credit score of at least 300+?

If you satisfy these criteria, then scroll up now to apply! You could be driving off in the car of your dreams before you know it.

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Andy Andy


Andrew Bell

Since founding Nifty in 2016, Bell has continued to make waves within the local financial sector for his continued ambition and willingness to adopt emerging technologies.

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