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How Can I Get a Car Loan With Bad Credit?


Are you struggling to get approval for a car loan due to a less than perfect credit record?

Here at The Loan Panel, we offer a range of flexible loan products — including those who have a bad credit history — that will help you get into your new car sooner.

As a leading personalised broker in Australia with a large network of lenders, we can offer flexibility when it comes to approving loans, even if you’ve struggled to obtain loan approvals from the big banks in the past.

When it comes to submitting an application for a bad credit loan, there are a few things a prospective lender will look at when reviewing your application. Here are a few things you can do to improve your chances of having your loan application approved.


Reviewing bank statements

As part of your bad credit car loan application, lenders will need to review you finances, including your bank statements, in order to assess your ability to meet your financial commitments.

Your bank statements play a vital role in demonstrating your ability to live within your means and have the capability to set aside savings regularly. Signs of savings and being able to manage your finances are a positive reflection on your ability to meet any future financial commitments you may enter into. Prospective lenders will also be looking for adverse banking transactions such as overdrawn accounts and dishonoured direct debits which are indicators that you are unable to live within your means. This will reflect poorly on you and may result in your loan application being disapproved.

Loans and Credit Card History

Similarly, any current loans or credit cards in your name will be closely reviewed.

If your repayment history shows more than the minimum monthly repayment being made on time, it will indicate to any prospective lenders that you have the ability to manage your living expenses and have the financial capacity to make additional payments to any loans borrowed.

Credit Repair

bad-credit-repair-car-financeBefore you submit your application for a loan of any kind, be sure to request a copy of your credit file from a reputable credit reporting agency such as Veda or Dun & Bradstreet. Review your credit file to ensure there are no errors or unresolved issues. Ensuring your credit file is up to date and without errors will go a long way to ensuring the feasibility of your application.

Employment Status

When it comes to employment, providing evidence of having a steady income is essential.

A prospective lender will look for a reliable source of income to ensure you are capable of repaying any future loans you may take out with them. Whether you’re casual, part-time or full-time employed, having a stable employment history will be looked at favourably during your application review.

For those employed on a casual basis, being employed by the same employer for over 12 months will be provide lenders with the assurance that you have a steady income and are able to meet your financial obligations. Part-time and full-time employed applicants will need to have completed their probationary period, as a minimum, in order to prove to lenders that you have a reliable income and are able to service any financial agreements you enter into.


When it comes to your application for a bad credit loan, honesty is always the best policy. As part of their procedure, prospective lenders will conduct an in-depth review of your financial records to cross-examine the information you put forth on your loan application. Therefore, any discrepancies that are discovered or any misrepresentation of the information you put forward will disqualify your application.

Don’t Stop!

When thinking about your bad credit history it is easy to be overwhelmed and think the situation is hopeless. Yes, you need to honestly review your current situation and be clear on the fact your circumstances financially are what they are.

But don’t stop there.

The good news is there are things you can do to help change your situation for the better. Dealing with bad credit and moving forward IS attainable with good advice and the help of an expert term, like you have at The Loan Panel.

If you need to obtain a loan and your credit is bad. Don’t dispair. Get in contact with one of the friendly team at The Loan Panel, either by calling us direct or submitting a form and we will call you back. We will find out more about your situation and what you need and can help you get there!

We can help! To find out more about how we can help you obtain car finance with bad credit, contact the friendly team at The Loan Panel today.