Can I get a car loan without a credit check?

Sometimes unexpected emergencies arise that put us in a tricky financial situation. Perhaps a lender rejected your car loan application due to poor credit or you have a history of making late payments to lenders. Maybe you simply haven’t built up enough years of credit history to acquire a good credit score. No matter how you got there, it’s worth understanding your options for obtaining a car loan without a credit check.

It is a legal requirement in Australia for lenders to act responsibility when providing loans. This includes carrying out credit checks on all applicants to ensure the borrower will be able to repay the loan without falling into financial hardship.

A bad credit score can make it tough to get a car loan, as lenders may view you as a ‘risky’ borrower. But don’t lose heart. Your credit score isn’t the only factor that lenders consider when deciding whether to approve you for a car loan and some lenders are willing to offer finance with no credit check needed.

Things to consider

Before you apply for a car loan, remember that lenders who are willing to provide funds without checking your credit history are likely to charge you higher fees and interest rates because they view you as a ‘risky’ borrower. They may also require a large deposit before they will loan you the funds.

If you already have significant debts or you’ve struggled to repay loans in the past, a car loan may not be the best option for you. If you’ve fallen into financial hardship, you can seek help from qualified professionals free of charge through the National Debt Helpline (NDH). Call 1800 007 007 to find a counsellor near you.

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