Been knocked back by banks? You're not alone - and you're not out of options. At Your Lending Friend, bad credit car loans are our specialty. We work with lenders who look at your whole situation, not just your credit score.
We understand life doesn't always go to plan. Your past doesn't define your future.
A bad credit score can make getting a car loan feel impossible. Banks take one look at your credit file and say no. It's frustrating, especially when you need a car to get to work, take the kids to school, or just live your life.
Here's the good news: specialist lenders exist for exactly this situation. They understand that good people sometimes hit hard times. A default from three years ago doesn't mean you can't afford repayments today.
At Your Lending Friend, we connect you with these specialist lenders. Our brokers understand bad credit lending inside and out, and we'll work to find you the best possible option for your situation.
We've helped Australians in all kinds of credit situations get approved
Defaults you've already settled show you've addressed past issues
Even with outstanding defaults, options may be available
Moved on from bankruptcy? Second-chance lenders can help
Completed your debt agreement? Time to rebuild
Scores below 500? We have specialist lenders for you
Bank said no? We work with lenders who look deeper
First-time borrower? We can help establish your credit
Irregular income doesn't mean you can't get approved
Paid defaults are generally easier to work with. They show you've addressed the issue, even if it took time. Some lenders will overlook paid defaults, especially if they're older and you have stable current income.
Unpaid defaults are trickier, but not impossible. Some specialist lenders will still consider your application, particularly if the defaults are older (2+ years), you have a good explanation, and your current income supports the repayments.
What to expect based on your credit situation
| Credit Situation | Typical Rate Range |
|---|---|
| Good Credit | 6% - 10% p.a. |
| Fair Credit | 10% - 14% p.a. |
| Poor Credit / Paid Defaults | 12% - 18% p.a. |
| Unpaid Defaults / Recent Bankruptcy | 15% - 22% p.a. |
The Silver Lining: A bad credit car loan can actually help rebuild your credit. Make your repayments on time for 12-24 months, and you may be able to refinance to a better rate as your credit score improves.
*Rates are indicative only and depend on individual circumstances. Comparison rates available on request.
Our proven process for bad credit car loans
We review your credit file and financial situation honestly. No false promises - just straight talk about your options.
We know which lenders suit which situations. Someone with paid defaults needs a different lender than someone recently discharged from bankruptcy.
How your application is presented matters. We highlight your strengths - stable income, savings, good recent payment history.
No confusing jargon or hidden catches. We explain your options clearly so you can make an informed decision.
Checking your options won't affect your credit score
Simple steps that can make a real difference to your application
Know what lenders will see and check for errors.
Even small wins can help your application.
Ideally 3+ months in your current job.
Even small regular savings show financial discipline.
Multiple applications hurt your score. Let us do the searching.
We can't help if we don't know the full picture.
Real stories from Australians we've helped get approved
“I had three unpaid defaults from when I went through my divorce. Every bank said no. Your Lending Friend found a specialist lender who approved me within a week. The rate was higher than normal, but it got me a reliable car for work. A year later, they helped me refinance to a much better rate.”
Karen S.
Brisbane
“Discharged from bankruptcy 18 months ago and thought I'd never get credit again. These guys connected me with a lender who specialises in second-chance lending. Now I've got a car and I'm rebuilding my credit.”
James P.
Melbourne
“My credit score was 420 and I'd been knocked back by two other brokers. Your Lending Friend didn't judge me - they just got to work finding options. Approved within 3 days for a decent used car.”
Michelle R.
Sydney
Common questions about getting a car loan with bad credit
Defaults stay on your credit file for 5 years from the date they were listed, regardless of whether you pay them off. However, a paid default looks better to lenders than an unpaid one, and specialist lenders may overlook older paid defaults.
It's very difficult to get credit while you're an undischarg...
It's very difficult to get credit while you're an undischarged bankrupt. You'll generally need to wait until you're discharged (usually 3 years from filing). Once discharged, we can help - though waiting 12+ months post-discharge improves your options significantly.
Usually, yes. Bad credit car loans typically have higher rat...
Usually, yes. Bad credit car loans typically have higher rates because lenders are taking on more risk. However, the rate you're offered depends on many factors, and making consistent repayments can help you refinance to a better rate in 12-24 months.
There's no universal minimum. Some specialist lenders don't ...
There's no universal minimum. Some specialist lenders don't use credit scores at all - they assess each application individually based on your current circumstances. We've helped people with scores in the 300s get approved.
Not usually. Most bad credit car loans don't require a guara...
Not usually. Most bad credit car loans don't require a guarantor, though having one can sometimes help you get approved or secure a better rate if your situation is particularly challenging.
A deposit isn't always required, but having one (even 10-20%...
A deposit isn't always required, but having one (even 10-20%) can significantly improve your chances and the rate you're offered. It shows lenders you have savings ability and reduces their risk.
Still have questions? Contact our friendly team
No impact on your credit score
